Norte II Combined Cycle Power Plant

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Norte II was a 433MW gas-fired combined-cycle power plant project in El Encino, Chihuahua, Mexico under a 25-year BOT contract. The project company was owned by Korea Electric Power Company (KEPCO) [Korea, 56%], Samsung [Korea, 34%] and Techint SA [Argentina, 10%]. The deal marked the first time a Korean firm was actively involved in generation in Mexico. In August 2010, a 25-year BOT contract as well as a Power Purchase Agreement was awarded to Kepco’s consortium by Mexico’s Comision Federal de Electricidad (CFE), the grantor and electricity offtaker. CFE began procuring the 25-year Norte II plant in December 2008 and at least 17 bidders expressed interest in the contract, including Abener, Alstom, Cobra, Endesa, GE, ICA-Fluor Daniel, Iberdrola, Iberinco, Mitsubishi, Mitsui, Prolec, Samsung C&T, Senermex Ingeniera y Sistemas, Siemens Energy, Suez Energia, Unin Fenosa and Techint. The PPA was signed in September 2010. The total project cost was US $420 million. The project reached financial closure in March 2011 with a US $325 million club loan. The Export-Import Bank of Korea (Kexim) provided a US $174 million tranche and mandated lead arrangers Credit Agricole and Sumitomo Mitsui Banking Corporation (SMBC) provided an $86 million Kexim-guaranteed tranche and a $65 million un­guaranteed tranche. Tenor for the debt was 21 years and 10 months with a 2.5-year grace period on the direct and guaranteed tranches and 20 years on the uncovered tranche. Operations commenced in December 2013. Project will become operational in a few years.