Bajio Gas-Fired Power Project

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In April 1998, Mexico's Comision Federal de Electricidad (CFE) announced that InterGen Aztec Energy VIII B.V., an affiliate of InterGen which in turn is a joint venture between Bechtel Enterprises Inc and Shell Generating Ltd., has been awarded a contract for the El Sauz power project. In January 1999, AEP Resources Inc. acquired a 50% share of this project from InterGen. The natural gas-fired, combined cycle plant will be built with a capacity of 600-MW (ISO), with 85% of the power contracted to CFE and the remaining power to be delivered to industrial consumers in the region. The build, own and operate (BOO) facility will be built in the municipality of San Luis de la Paz in the state of Guanajuato, approximately 160 miles from Mexico City. CFE signed a 25-year power purchase agreement with InterGen for 85% of power and provide the El Sauz facility with natural gas as the base fuel and diesel as the alternate fuel. The remaining power will be delivered to industrial consumers in the area. The investors will channel an estimated $230 million into the proposed installation. In May 2000, the IADB approved US$ 135.5 million financing package for the project: US$ 22.5 million direct loan and US$ 113 million syndication. The US Exim is also providing a US$ 215 million construction guarantee to the project. Commercial operation was expected in November 2001. None None