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China Railway Construction Corp Ltd (CRCC), one of China's two major railway companies, will be compensated with almost 20 million pesos ($1.31 million) in the wake of the Mexican government unilaterally suspending a high-speed rail contract, according to a report on Reuters.

An official from CRCC told caixin.com that China has submitted the compensation application to Mexico, but the official was not able to reveal the exact amount. Yuriria Mascott, a deputy minister in Mexico's Communications and Transport Ministry, told Reuters that the government had already completed an analysis of CRCC's costs.

"The legal team informed me that what is to be expected is almost 20 million [pesos] in compensation," Mascott said.

CRCC won the $3.75 billion high-speed rail contract last year. The contract was later revoked over controversy in the bidding process.

Earlier this year, after the Mexican government relaunched the bid and then canceled it for a second time citing budget cuts, the CRCC assembled a list of costs incurred during the tender and requested compensation.