Mexico revoking rail deal due to domestic factors: China

Mexico decided to withdraw a high-speed rail deal with a China-Mexico joint consortium because of domestic factors, China's economic planner said Saturday.

It had nothing to do with the Chinese enterprise and the Chinese government hopes that the case could be settled properly as soon as possible, Xinhua quoted a spokesperson with the National Development and Reform Commission as saying.

The spokesperson said it was surprising to hear Mexico decided to scrap the rail deal as the Chinese enterprise has been strictly following the public bidding procedures and requirements, and the bidding content complies with the requirements of the Mexican government.

The Chinese government encourages enterprises to participate in infrastructure construction in Mexico in a mutually beneficial way, and hopes the Mexican government could create a fair competition environment for these enterprises, the spokesperson said.

Mexico has annulled the deal due to public concerns about the bidding process, the Ministry of Communications and Transport said Thursday.

The government will hold a new auction for the multi-billion dollar project linking Mexico City with the industrial hub of Queretaro, so as to give more train manufacturers time to make proposals, the ministry said in a statement.

Earlier this week, a consortium comprising China Railway Construction Corporation and several Mexican construction firms won the bid.

The bidding was legitimate, the statement said, adding that President Enrique Pena Nieto's decision to scrap the deal was aimed at expelling any public doubts on the project.