Nejapa Power Co.

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Nejapa is a 140-MW diesel fired power plant which is the first private power plant in El Salvador. The power plant supplies around 15% of the country's electricity demand. The developers of the project are Coastal Power Production (86.6%) and La Casa Castro (13.4%). Initially the government awarded the project to a consortium of Independent Energy Corp., United Thermal Development Corp., Latin American Energy Development Inc. and La Casa Castro. The consortium sold its participation to Tenneco Inc, which later sold it to Coastal Power Production. The total cost of the project was $106 million. The first 91-MW phase started to operate in July 1995, the second and final phase started in May 1996. The company has a 20-year power-purchase agreement with Comision Ejecutiva Hidroeletrica del Rio Lempa, the integrated state-owned utility, for 91-MW. This agreement is backed by a government guarantee. In 2001, El Paso Corporation acquired Coastal Power along with Coastal's 87% stake in Nejapa Power Co.. In 2005, El paso discounted the operation of Nejapa Power plant and was planned to sell it in 2006. In 2006, Cenergica, a subsidiary of the Israeli company Inkia (Israel Corp.), acquired El Paso's stake in the project. By 2009, Cenergica owned 100% of the project company's shares.