Mexico invites new bids for bullet train

Mexico's government reopened the bidding process for a bullet train project on Wednesday, two months after a Chinese-led consortium's winning tender was controversially canceled.

The transport ministry published the preliminary terms to enter the contest to build Mexico's first high-speed railway, linking Mexico City to the central manufacturing hub of Queretaro.

China Railway Construction Corporation and Mexican partners had been awarded the $3.75 billion contract in November, but President Enrique Pena Nieto abruptly canceled the deal three days later, citing concerns over transparency in the process.

Days after Pena Nieto's decision, a news report said that a Mexican firm that was part of the consortium had built a house for the president's wife, sparking allegations of a conflict of interest.

The presidency has denied that the government contractor, Grupo Higa, had been given any favors or that Pena Nieto's decision was linked to the news report.

China Railway Construction said last week that it plans to tender for the project again, but Grupo Higa has indicated that it will stay out this time.

Companies will now have six months to make proposals, with the winner to be announced on July 31. Firms had complained about the 60-day bidding process last year, in which the Chinese-led team ended up being the sole bidder.