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Mexico's transport and communications ministry awarded a contract to French engineering firm Alstom and Constructora de Proyectos Viales de México (CPVM), a subsidiary of Spain's OHL, to develop line No. 3 of the Guadalajara light rail system.
Alstom will provide 18 metro trains, communication systems, high-voltage and traction substations, and communications-based traffic control systems.
Alstom's portion of the contract is valued at 240mn euros (US$300mn), the firm said in a release.
The US$1.35bn project entails a 20km line connecting municipalities Zapopan and Tlaquepaque in the Guadalajara metropolitan area, 16 stations and two terminals and will boast capacity of 233,000 passengers a day.
Alstom was awarded a 5.81bn-pesos (US$416mn) contract for works on Mexico City subway trains last month.
The firm was also among companies who publicly denied responsibility for safety failures which forced the partial closure of the capital's metro line No. 12.