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Contractor close to Mexico president won’t rebid on train

December 23, 2014

MEXICO CITY (AP) — A construction company questioned about its links to Mexican President Enrique Pena Nieto and his wife will not rebid on a high-speed rail project that was abruptly canceled under allegations of favoritism.

Transportation Secretary Gerardo Ruiz Esparza says “public opinion” makes the company’s participation impossible.

A subsidiary of Grupo Higa was part of the China Railway Construction Corp. consortium that won the $3.7 billion contract in November. It was canceled several days later following opposition allegations that the rapid bidding process favored companies close to Pena Nieto and his Institutional Revolutionary Party.

Several days later, local news media reported that another subsidiary of Grupo Higa built and owned the private home of first lady Angelica Rivera. She said she would sell her interest in the home.

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