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Mexico gets request from Chinese firm for repayment

February 10, 2015

MEXICO CITY (AP) — The Mexican government says a consortium headed by China Railway Construction Corp. Ltd. has requested reimbursement for the cancellation of a winning bid on a rail contract.

The Transportation Department said the consortium has requested repayment of “non-recoverable costs” it spent bidding on the high-speed rail link between Mexico City and the city of Queretaro.

The department said Monday it was waiting for supporting documentation. It did not say how much the consortium was demanding.

Mexico awarded the $3.7 billion bid on Nov. 3 but cancelled it on Nov. 6, just two days before Mexican media reported the president’s wife was occupying a $7 million mansion registered in the name of a Mexican firm that formed part of the winning consortium.

The project was later suspended due to budget cuts.

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