InterGen and AEP Resources financially closed a deal on the 600MW natural gas-fired Bajio power plant. The $435 million plant isunder construction in the state of Guanajuato, 160 miles fromMexico City.
AEP Resources, a subsidiary of American Electric Power, andInterGen, a Shell-Bechtel venture, secured funding from a number ofbanks to ensure the joint venture would reach completion. InterGenwas awarded the project in April 1999 and AEP Resources bought a50% interest in the plant in December 1999
The Comison Federal de Electridad (CFE) will use about 495 MW ofthe plant’s generation with the remaining 105 MW being sold toindustrial customers. Construction should finish next year and thepower generation facility should be fully operational in November2001.
“Bajio is the third electrical infrastructure development wehave successfully closed and brought into construction in Mexico,”said Carlos Riva, CEO of InterGen. “Mexico is one of our topinternational markets and we plan on being an active participant inadditional CFE bids over the next two years.”
Don Clements, president of AEP Resources added, “We anticipatecontinued development work in Mexico and look forward to additionalprojects with our partner.”
The Bajio plant is one of 10 power plants that the Mexicangovernment has awarded since 1997. According to AEP, Mexico’sEnergy Secretary Luis Tellez said that demand is growing 7% a year,and Mexico must add 3,000 MW per year to keep up.
The CFE yesterday approved construction of a 930 MW gas-firedcombined cycle power plant in Boca del Rio, Veracruz. Indian steelcompany Ispat is building the plant, which is expected to be inservice in 2003.
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