Grupo Carso Says Repairing Collapsed Mexico Metro Could Cost $ 40 Million | World news

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MEXICO CITY (Reuters) – Mexican billionaire Carlos Slim’s Grupo Carso said the cost of repairing a collapsed section of a Mexico City metro rail that caused a fatal crash earlier this year could run as high as some 800 million pesos ($ 40 million).

Carso was one of the companies in a consortium that built metro line 12 and said it would rebuild an elevated segment of track that collapsed in May, killing 26 people.

Grupo Carso denied any responsibility for the accident.

Speaking on a call with analysts on Grupo Carso’s third quarter results, chief executive Antonio Gomez said auditors determined the impact of repairs on the business to be 800 million pesos, or about 1% of total sales.

He added that the figure was still a preliminary estimate pending government instructions on how to complete the project.

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“The cost won’t be higher than that,” Gomez said. “As soon as we finish the engineering project, we can figure out how many.”

The Mexican group Grupo ICA and the French Alstom were part of the consortium which built the complete line.

An independent auditor concluded that missing bolts and poor welding contributed to the crash, findings confirmed in a separate investigation by the Mexico City attorney general’s office.

Earlier this month, officials in Mexico City said they were opening criminal cases against people and companies involved in the construction of metro line 12 and urged companies to quickly reach deals of regulation.

($ 1 = 20.1870 Mexican pesos)

(Reporting by Daina Beth Solomon and Cassandra Garrison; editing by Chizu Nomiyama)

Copyright 2021 Thomson Reuters.

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