CRCC seeks compensation for Mexico high-speed project
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E-mail China Daily, February 3, 2015
China Railway Construction Corp Ltd (CRCC) said on Tuesday that Mexico high-speed project's "indefinite suspension" would not impact its overseas operation, adding that the company is negotiating with the government of Mexico on the project's compensation.
The government of Mexico cut its 2015 budget by nearly 3 percent last Friday after a drop in global oil prices hurt public finances, and decided to shelve a project to build the rail link between Mexico City and the central city of Queretaro.
CRCC shares fell 6.42 percent and 9.91 percent respectively on Jan 30 and Feb 2.
CRCC said the Mexico high-speed project's shelving is an individual case and wouldn't have an effect on its overseas operations, according to an official announcement. The company is negotiating with the Mexico government on the project's compensation.
The Chinese-led consortium, formed by CRCC, CSR and four other Mexican construction firms, won the bid last November to build a 210-km high-speed railway connecting Mexico City with the industrial hub of Queretaro to the north. However, the contract was revoked days later out of domestic issues.
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