CTA

active

The proposed project consists of the construction and operation of 2x165MWe circulated fluidized bed (CFB) technology thermal power units in northern Chile to be fired by a combination of coal, petroleum coke, and biomass fuels. The project sponsor is Suez Energy Andino (project sponsor), a subsidiary of Suez S.A. (France). The first 165MWe unit (Unit 1) is to be developed by Central Termoeléctrica Andina S.A., (CTA), while the second 165MWe unit (Unit 2), with essentially the same characteristics, will be developed through a separate special purpose company. Both Unit 1 and 2 will be selling power to the spot market. To hedge the exposure against spot market volatility, Unit 1 already signed a 21-year financial contract or power purchase agreement (PPA) with Corporación Nacional del Cobre S.A. (Codelco), a Chilean state-owned copper mining company, for 150 MW capacity sales. Furthermore, with respect to Units 1 and 2, CTA entered into a turn-key contract with Cobra Instalaciones y Servicios S.A. (Cobra), a company of ACS S.A. (Spain). Notice to proceed to the EPC contractor for the construction of the first unit (165 MW) was issued on July 1, 2007 and for the second unit on December 31, 2007. The construction period is expected to take 33 months. With respect to Unit 2, the PPA arrangements are yet to be finalized.