Mexico Abandons Farac II

Mexico has cancelled an auction for the Paquete del Pacifico tollroad package, also known as Farac II, after extending twice. Bids for the estimated MXP40bn network were due Friday, but the transport ministry says the 2 received fell short of the minimum. Bids were received from a consortium of Controladora de Operaciones de Infraestructura and Caminos y Carreteras del Mayab – both units of Grupo ICA – and Promotora del Desarrollo de America Latina. Letters of apology for not participating were sent from Obrascon Huarte Lain and a consortium made up of Global Via Infraestructuras, Mexicana de Global Via Infraestructuras, and HSH Investments Limited. The ministry says it will work with Banobras and Fonadin to alter the package in response to market conditions. The deal is seen as one of the cornerstones of president Calderon’s infrastructure push.