InterGen, a Shell-Bechtel joint venture, and AEP Resources, a subsidiary of American Electric Power Co. Inc., Wednesday reported closing on $435 million in credit facilities for the Bajio power plant, a 600 Mw, natural gas-fired, combined-cycle power facility under construction near San Luis de la Paz.
The Comision Federal de Electricidad (CFE) announced in April 1999 that InterGen had won the contract for the Bajio power project, then known as El Sauz. In December 1999, AEP Resources purchased a 50% stake in the facility.
The financing plan includes InterAmerican Development Bank A and B loan funding and US Export Import Bank (Eximbank) funding using Eximbank's comprehensive guarantee program.
The InterAmerican Development Bank will provide $22.5 million under the A Loan and a consortium of commercial banks, including BNP Paribas, Deutsche Bank, Citibank, and Dresdner Bank, will provide $113 million under the B Loan. Citibank will provide funding for the Eximbank $215 million comprehensive guarantee facility.
About 495 Mw of the project's power will be available to CFE under a 25-yr power purchase agreement (PPA) structured as a build-own-operate contract. The remaining 105 Mw of the project's power will be available to third-party industrial customers. The facility is expected to begin commercial operations in November 2001.
"Bajio is the third electrical infrastructure development we have successfully closed and brought into construction in Mexico," said InterGen CEO Carlos Riva. "Mexico is one of our top international markets and we plan on being an active participant in additional CFE bids over the next 2 years."
Bajio is the fifth of 10 power station projects the Mexican Government has put to bid since 1997. Mexico Energy Secretary Luis Tellez has predicted Mexico's electricity demand will grow 7%/yr. He has said Mexico needs to add about 3,000 Mw/yr to meet this demand.
On June 16, the CFE awarded InterGen a contract to build, own, and operate the 750 Mw Rosarito facility in the state of Baja California Norte. Worldwide the company is operating or building a total of 11 power stations representing 7,985 Mw and has an additional 7,040 Mw in advanced development.
"We're pleased to be a part of this project with InterGen," said AEP Resources Pres. Don Clements. "We anticipate continued development work in Mexico and look forward to additional projects with our partner."