Abengoa to sell Mexico power station

Friday, September 1, 2017

Spanish company Abengoa has reached an agreement to sell its 907MW Norte III combined cycle plant in Mexico's Chihuahua state to a consortium formed by Macquarie Capital and Techint Engineering & Construction.

The plant has a 25-year operation and maintenance contract and a power purchase agreement with Mexico's state utility CFE, which will remain in place, and Abengoa will continue to operate the water treatment plant, the company said in a statement.

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The transaction will have a provisional positive net effect on Abengoa's results of around US$33mn, it added.

"From now on, with the arrival of new resources, new owners will continue with the construction of the plant to achieve its culmination by 2019," Abengoa said in a statement.

"Upon completion, Norte III plant, one of the largest combined cycles of the country, will produce enough power to supply more than 500,000 homes every year, providing an efficient response to growing electricity needs of the north of the country."

Abengoa said the deal is part of its divestment strategy and represents a further step in the company's viability plan. The company announced the completion of a restructuring in March after filing for bankruptcy protection in November 2015 with consolidated debt of more than 20bn euros (around US$23.7bn at the current exchange rate).

In May, Abengoa reached an agreement with Prana Capital, the infrastructure and energy subsidiary of Mexican private capital fund Artha Capital, to sell 80% of the concession to build and operate the El Zapotillo aqueduct.

In recent months the company has also announced the divestment of Bioenergy Europe, Bioenergy USA, the Ashalim solar-thermal plant in Israel, the Qingdao desalination plant in China and the Abentel subsidiary to Ericsson.

In August, US-based private equity firm TPG Capital made a 400mn-real (US$129mn) bid for Brazilian power transmission assets belonging to Abengoa.