Mexico awards US$347mn co-gen project

Mexico's state utility CFE has awarded Iberdrola a contract to build an 889MW combined cycle plant in the northern state of Nuevo León, the second of four planned co-generation plants to be tendered.

The 43 CC Noreste natural gas-fired plant will be operated under the independent producer model on a 25-year contract to meet growing electricity demand in the country's northeast, CFE said in a press release.

The plant will be located in the El Carmen municipality and Iberdrola will design, build, test and place the facility into service with a US$374mn investment, which is 74% lower than CFE's original budget for the project.

In May, CFE awarded Spanish firm Abengoa a contract to build the US$1.5bn, 925MW Norte III plant in Chihuahua state.

Japan's Toshiba Corporation won a contract in May to supply two sets of steam turbines for Norte III.

The CFE also plans to award contracts to build the Topolobampo II and III co-generation plants in Sinaloa state.

Iberdrola's bid to build the Noreste plant was successful because it presented the lowest electricity generation price, at 0.47 pesos per KWh, CFE said.

Project bids were also received from Abeinsa Noreste Monterrey and Abener Energía, AES IPP, Enel Investment Holding, GDF Suez México and Sojitz Corporation, Korea Electric Power Corporation and Daelim Energy, as well as from Unión Fenosa México.

This is the fourth electric power station tendered by CFE since last year.