CHINA’S CSR Corp., which makes rail cars, and China Railway Construction Corp., which builds rail tracks, said yesterday that it received notice over the weekend that its contract for a US$4.4 billion Mexican rail project had been revoked.

    The two firms won the contract last week as part of a consortium of six companies to build a 210-kilometer electrified track between Mexico City and the central city of Queretaro.

    China Railway said it would participate in 60 percent of the construction services and 100 percent of the operating-maintenance services, valuing its deal at about US$2.9 billion, while CSR said it would supply high-speed trains valued at US$406 million.

    The two firms said in separate statements that they received notice early Saturday morning from Mexico’s Ministry of Communications and Transportation confirming that the winning bid had been cancelled and that bidding would restart.

    The Mexican Government said Saturday that it would seek new bids for the contract, which was abruptly cancelled just days after it was awarded to the consortium, which included four Mexican companies.

    The Chinese-led consortium was the sole bidder for the rail project after 16 other firms pulled out of the process, including firms such as Germany’s Siemens AG, France’s Alstom and Canada’s Bombardier. Several said they pulled out after the government declined to give them more time to work up bids. Rival companies had questioned the bidding process, saying it had been too hasty.

    The government will again put the project out to tender by month’s end, Gerardo Ruiz Esparza, Mexico’s communications and transportation minister, said Thursday in a national news telecast. Companies will be given six months to prepare their bids. Companies were given only two months to prepare bids last time. (SD-Agencies)