Centrales Termicas Mendoza SA

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Centrales Termicas Mendoza SA had a 422-MW capacity in November 1995 when it was privatized. However, the plant produced only 153-MW due to the high level of deterioration. The company was partially privatized in October 1994 when a 51% equity stake was sold for US$45 million to CMS Generation (41%) and Ormas Saicic (10%). In addition, a 4% equity stake was sold to power plant's workers for $2.2 million, at the same share price that the winning consortium paid. By 1996, the equity structure was: 80% CMS Generation, 16% the government of Mendoza province, and 4% power plant workers. The company's privatization did not include a long-term concession agreement as was the case in most power privatizations in Argentina. In 1996, the company had an investment plan to increase the generating capacity from 274-MW to 506-MW. Such expansion required about $185 million investment. The capacity of the plant was increased to 540 MW in 1998. In 1996, Mendoza plant signed a two-year power-supply agreement with Energia Mendoza Sociedad del Estado (a local distribution utility) for the sale of 110-MW of capacity beginning in May 1996. When the contract expires, the plant will operate as a merchant plant and deliver its energy to Argentina's power pool. None None