After facing steep criticism claiming favoritism, the administration of Mexican President Peña Nieto has cancelled the contract with a Chinese company to build Latin America's first high-speed train. The government cancelled the contract after lawmakers said it favored the Chinese company over others.

The Mexican government announced the cancellation of the $3.75 billion project abruptly, having agreed to it on Monday, according to the BBC. President Pena made the decision to quell "any doubts about the legitimacy and transparency" of the bidding process.

Transportation Minister Gerardo Ruiz Esparza announced that new bids for the project would be accepted from mid-November and would be open for six months.

"The president wants this project which is so important for Mexico to not be questioned, to have absolute clarity," he said. "We expect more participation from train makers in the new tender."

Mexican lawmakers accused the government of favoring the China Railway Construction Corp., the only company who bid on the project, according to the Yucatan Times. The company's bid was 18 percent higher than what was projected by the Transportation Ministry.

Bids by other three companies, Siemens of Germany, Alstom of France and Bombardier of Canada, were not accepted because they were not received on time, although the companies did ask for more time. The bidding time frame was two months.

The company also offered a financing program that would cover 85 percent of the costs with a 3.22 percent fixed interest rate over 20 years. Four Mexican companies were part of the Chinese consortium: Constructora Teya, Grupo GIA, Promotora y Desarrolladora Mexicana and GHP Infraestructura Mexicana.

Two members of the ruling Institutional Revolutionary Party are linked to two of the companies. The former PRI president, Carlos Salinas de Gortari, is brother-in-law to Grupo GIA's owner. Constructora Teya has links to Eolo, a company that rented airplanes to President Peña Nieto's campaign.

The Chinese consortium will be allowed to bid on the new tender, according to Reuters. Two other companies, Alstom SA and Bombardier Inc, said they would consider bidding. The project aims to build a line between Mexico City and Queretaro.

President Peña Nieto will visit Beijing next week.