Norte-I Durango Combined Cycle Plant

active

In January 2008, Union Fenosa SA [Spain] began construction of a 450 MW, gas powered, combined cycle plant in the state of Durango, northern Mexico. The project company Fuerza y Energia de Norte Durango, SA de CV was formed as a 100% subsidiary of Union Fenosa. Power generation in Mexico was regulated by the Comision Federal de Electricidad (CFE), Mexico’s state owned electricity enterprise. The Norte I plant was part of Union Fenosa’s plan bigger and when completed, was to bring Union Fenosa’s generation capacity in Mexico to 2,0000 MW. The contract was awarded to Union Fenosa [Spain] over Iberdrola [Spain] in March 2007 in an international competitive tender conducted by CFE. CFE gave Norte I the status of a Productor Externo de Energia (PEE), or external power producer as well as a 25-year power purchase agreement. Further tendering information was not available. The project’s cost was estimated at US $400 million. Loan information was not available, but 28% of the plant was constructed by 2Q 2008, and by 4Q 2008, 61% of the facility was constructed. Union Fenosa mentioned that it invested 68 million euro in the project in 2007 and approximately 200 million euro in 2008. The project was expected to become operational in 2010. Operations commenced in August 2010. Figures were converted to USD based on the market rate, period average for 2008 published by the IMF.