Government goes with Chinese bid

Lone bidder gets the 50-billion-peso high-speed train between Mexico City and Querétaro The federal government awarded a multi-billion-peso, high-speed train project to its only bidder, the China Railway Construction Corp.
The firm will lead a consortium that includes six other firms to build and operate the 210-kilometer passenger railway line between Mexico City and Querétaro. The consortium’s 50.82-billion-peso bid was about 18% higher than the Transportation Secretariat’s initial projection.
It was also the only bid out of a field of more than a dozen international firms such as Siemens of Germany, Alstom of France and Bombardier of Canada, many of which had asked for additional time to prepare bids. But the government declined to budge from its two-month time limit.
Transport Secretary Gerardo Ruiz Esparza defended that action by saying that on average such projects receive only two bids. He promised the project would be transparent, and that an international auditor would be engaged to monitor progress.
Reports on that progress will be published online at a dedicated website. The winning bid was accompanied by an offer of Chinese financing, which the government also accepted. That financing will represent 85% of the project’s cost at a fixed interest rate of 3.22% over 20 years, with a grace period of two and a half years.
The train will be able to carry 23,000 passengers a day at speeds up to 300 km/h, which will mean a 58-minute trip each way.
Each of the trains will consist of eight cars with a total capacity of 426 passengers, who will have access to internet, air conditioning and ergonomic seating. The service is expected to be operational in the second half of 2017.

Sources: CNNExpansion

One comment

  1. Interesting … I had read on the Internet that the Mexican government had cancelled the awarded contract with China, for a chance for a second bidder . I also read something about the President’s $3 million dollar mansion residence was registered in the name of a foreign corporation. Something fishy here !?

    Hope it is not like the eastern span of the San Francisco – Oakland bay bridge, also made by a Chinese Company with took some 20 years to open after an earthquake made unsafe the bridge section it replaces. Even after it opened this year, they have found so many defective welds and rusting bolt rods that they estimate another $120 million dollars to repair . And then the design by Chinese engineers is said by the University of California Chief Civil Engineer, will not survive the next major earthquake expected anytime soon on the earthquake faults on the Oakland side of the bridge. Yes, the bridge cost was some $6 billion dollars, and billions of dollars over budget.

    The California Central Valley high sped rail train from Bakersfield to Sacramento
    voted on by the California voters, has been changed so much from the original measure that private funding has not been found, and the Governor is taking funds from other projects to get the first rails installed on a short section. There was an early estimate that when operating, the state of California would have to subsidize each ticket sold by some $100 .

    The Governor looks upon this high-speed rail as his legacy of his four terms in office. If it ever gets built …. with the extreme drought in the state, and people moving because of job losses to the farm belt in California. Already some cities are trucking in water to bath , cook and drink.

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