CFE makes US$308mn payment to ICA for El Cajón

Tuesday, September 11, 2007

Mexican state power company CFE has made a US$308mn payment to engineering firm ICA (NYSE: ICA) relating to the second 375MW turbine of the El Cajón hydroelectric plant, ICA told the Mexican stock exchange in a filing.

CFE began tests on the second turbine May 31. The plant is in full commercial operations, although there are still some minor tests ongoing, an ICA spokesperson told BNamericas.

ICA handed over the first 375MW turbine to CFE in February, for which it received a payment of US$525mn.

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The company is using the majority of the second payment and US$175mn in reserves from the first to pay off debt related to the project, according to the filing.

Total payment of US$873mn is expected for the plant, but to date ICA has received only US$833mn as the two companies are still negotiating certain contractual details to settle the contract.

With projects this large, concluding negotiations for pending issues can last some two years, the spokesperson said.

The dam has capacity of 2.4Bm3 and the plant estimated annual output of 1.30TWh.