InterGen completes financing on La Rosita gas-fired power plant in Mexico

By OGJ editors
HOUSTON, May 7 -- InterGen, the electric power alliance between Royal Dutch/Shell Group and US engineering company Bechtel Corp., has arranged financing for the $748 million La Rosita Energy natural gas-fired, combined-cycle 1,065 Mw plant to be built in Mexico's state of Baja California.

The project will be InterGen's third natural gas-fired plant in Mexico. La Rosita is expected to begin commercial operations by the first half of 2003.

InterGen arranged $563 million of nonrecourse commercial bank senior debt financing for the project's construction and operation. Numerous banks and financial institutions were involved.

La Rosita represents the largest financing for a Mexican power project, Intergen said.

In June 2000, Mexico's Federal Electricity Commission awarded InterGen a contract to build, own, and operate a 750 Mw power project known as La Rosita. In response to the border region's growing energy demands, InterGen decided to expand the La Rosita infrastructure to 1,065 Mw.

Bechtel Power is building the plant. Natural gas for the project will be transported through a new 212-mile pipeline from California and Arizona to Mexico.