Business Irish

Wednesday 18 October 2017

Court to rule on Ganley firm's Mexico contract award bid

Declan Ganley. Photo: Damien Eagers
Declan Ganley. Photo: Damien Eagers
Donal O'Donovan

Donal O'Donovan

Businessman and political campaigner Declan Ganley is expected to hear tomorrow if a court in Mexico will hear his legal attempt to halt the award of a €7bn telecoms licence to a rival bidder.

On Monday, Mr Ganley's Rivada Networks filed papers with a federal court in the Mexican capital in an attempt to stop authorities from excluding the company from a race to secure the contract to build and operate the high-profile Red Compartida mobile coverage network on behalf of the state.

Last night, a spokesman for Rivada said the firm had made a number of applications to the Mexican court. It wants the court to order Mexico's Ministry for Communications and Transportation (SCT) not to destroy Rivada's failed bid package - something that will otherwise happen automatically but which the company thinks will make it impossible to fight its way back into the tender process.

Rivada is also asking the court to delay the formal award of the Red Compartida tender to rival consortium Altan until a full hearing of the Irish company's challenge can be heard.

Mexico's government has defended the exclusion of Rivada from the process after the Galway-based businessman and political campaigner criticised the move on Friday night.

The SCT said on Monday that the joint bid from Rivada Networks and Spectrum Frontier failed to meet the financial terms set down, and insisted its tender process had met the "best international transparency practices".

Rivada Networks said it had the required €50m security to underpin its submission, and that any issue with the bid was clerical rather than substantial.

Irish Independent

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