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Mexico wants Chinese firms for airport

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Mexico wants Chinese firms for airport
Source: Agencies | April 2, 2015, Thursday

MEXICO is trying to get Chinese state-run companies involved in the construction of a new US$11 billion airport as it seeks to make up for a tainted rail tender that soured relations with China, a source with knowledge of the government plan said.

Mexico said in September it would build the new Mexico City airport to relieve congestion and transform the capital into a major regional hub with six runways eventually serving 120 million passengers a year.

The airport is Mexican President Enrique Pena Nieto’s flagship infrastructure project. The other, a high-speed train linking Mexico City with the city of Queretaro, was originally awarded to a consortium led by China Railway Construction Corp. But it was later put on ice indefinitely — a move that shocked Beijing, officials say.

Senior Mexican officials believe that China could be assuaged by involving some of its state-run companies in the airport construction, said the source, who asked to remain anonymous because he is not authorized to speak publicly.

“In some levels of (China’s) government there is deep disappointment and a deep lack of confidence toward Mexico,” the person said. “The ball is in our court, and we have to show willingness with new projects.”

CRCC had the US$3.75 billion rail deal revoked just days before it emerged that Pena Nieto’s wife had bought a luxury house from one of the Mexican firms in the winning consortium.

Subsequent media reports showed the president and his finance minister had also either bought or used homes from the same government contractor.

Mexico tendered the rail project again in January, and CRCC was widely expected to win. But a sharp drop in the price of oil, which funds a third of Mexico’s federal budget, forced the project to be suspended.

After CRCC lost out, a delegation led by Mexican transport and communications minister Gerardo Ruiz Esparza told Chinese officials during a trip to Beijing that Mexico would welcome Chinese involvement in the airport, the source said.

“This is kind of paying a favor to the Chinese companies who were denied the Mexico-Queretaro train,” said Daniel Avila, a senior member of the Mexican Senate’s Asia-Pacific committee.
 
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Mexico wants Chinese firms for airport
Source: Agencies | April 2, 2015, Thursday

MEXICO is trying to get Chinese state-run companies involved in the construction of a new US$11 billion airport as it seeks to make up for a tainted rail tender that soured relations with China, a source with knowledge of the government plan said.

Mexico said in September it would build the new Mexico City airport to relieve congestion and transform the capital into a major regional hub with six runways eventually serving 120 million passengers a year.

The airport is Mexican President Enrique Pena Nieto’s flagship infrastructure project. The other, a high-speed train linking Mexico City with the city of Queretaro, was originally awarded to a consortium led by China Railway Construction Corp. But it was later put on ice indefinitely — a move that shocked Beijing, officials say.

Senior Mexican officials believe that China could be assuaged by involving some of its state-run companies in the airport construction, said the source, who asked to remain anonymous because he is not authorized to speak publicly.

“In some levels of (China’s) government there is deep disappointment and a deep lack of confidence toward Mexico,” the person said. “The ball is in our court, and we have to show willingness with new projects.”

CRCC had the US$3.75 billion rail deal revoked just days before it emerged that Pena Nieto’s wife had bought a luxury house from one of the Mexican firms in the winning consortium.

Subsequent media reports showed the president and his finance minister had also either bought or used homes from the same government contractor.

Mexico tendered the rail project again in January, and CRCC was widely expected to win. But a sharp drop in the price of oil, which funds a third of Mexico’s federal budget, forced the project to be suspended.

After CRCC lost out, a delegation led by Mexican transport and communications minister Gerardo Ruiz Esparza told Chinese officials during a trip to Beijing that Mexico would welcome Chinese involvement in the airport, the source said.

“This is kind of paying a favor to the Chinese companies who were denied the Mexico-Queretaro train,” said Daniel Avila, a senior member of the Mexican Senate’s Asia-Pacific committee.
Hope the Mexico don't play us out again.
 
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Hope the Mexico don't play us out again.

The rail project failed due to Mexico's own internal problems -- had nothing to do with China. Then they found out they did not have enough money to sustain the project and shelved it.

I guess, with this, they wish to apologize.

In business nothing is taken by heart. It is all about money.
 
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In apologise to the former case? But it's another firm. Anyway it seems Mexico will never have Chinese-built railways since it has displeased our Railway Firm...
 
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In apologise to the former case? But it's another firm. Anyway it seems Mexico will never have Chinese-built railways since it has displeased our Railway Firm...

Yes, but the same government.

I guess the rail project has been suspended for good. If one day they bring it up again, China will still have a good chance to win again.

What Mexico did was very unprofessional, but, we just need to move on.
 
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China is good at building airports, it is in Mexico's interests to work with China is this field, these are samples of Chinese airports built in recent years.

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%E6%B5%A6%E4%B8%9C-jpg.206152
%E6%B7%B1%E5%9C%B3-jpg.206153


More importantly, it would be a great opportunity for Mexico to expand the scope of co-operation beyond airport to "Aerotropolis" which is actively pursuing in China, like the Zhengzhou Airport Economic Zone (ZAEZ), an airport-centered green ecosystems. Chinese urban planners and civil engineering sector can add much value to Mexico's future infrastructural vision. Let's hope this all work out!

c02_1000-jpg.205807


Zhengzhou Airport Economic Zone (ZAEZ)

Link: Aerotropolitan ambitions
 
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Are Mexican serious this time? let's wait and see. o_O
 
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Does anyone know whether the Chinese firms were compensated for the Mexican HSR fiasco?

No compensation, no talk.

Otherwise, it's another round of wasted time and effort.

I personally don't have much confidence in Mexico, knowing how they run their country.
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Hopefully this time Mexico will keep its word and say NO to USA if demands arised to torpedo China investment plans again.Never mind the weasel talk -HSR project was terminated by USA order.
 
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Chinese is playing with the cartel? nice. I want my Mexi fries.
 
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The rail project failed due to Mexico's own internal problems -- had nothing to do with China. Then they found out they did not have enough money to sustain the project and shelved it.

I guess, with this, they wish to apologize.

In business nothing is taken by heart. It is all about money.
But how would they have money for a bigger project?
 
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But how would they have money for a bigger project?


There are different ways to finance mega projects like this. Other than government expenditure, PPP (Public-Private-Partnership) is a very common practice, like DBO, BOO, BOT, etc. Some sea ports, port cities, expressways, energy plants are built with financing model. Other than tech/manufacturing/construction, China is very experienced and more importantly financially capable of this.
 
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If they have the money to pay for it, we should look into it. But don't expect us to fund the project. With AIIB setup, our focus, and the busy schedule within the next few years are going to be in high demand so I am not sure if we have the time to do project abroad like this.
 
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China should ask for a big non-refundable deposit this time around.

No money no talk.
 
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Does anyone know whether the Chinese firms were compensated for the Mexican HSR fiasco?

No compensation, no talk.

Otherwise, it's another round of wasted time and effort.

I personally don't have much confidence in Mexico, knowing how they run their country.
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As far as I know, the sides agreed on the sum of the compensation (the Mexican side does not deny that they walked back on the contract for a reason that had nothing to do with the Chinese consortium).

But I am not sure the technical details of the payment process. I understand if they wanted to handle this with not much publicity.
 
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