Mexico's CFE Awards Contract for Norte II Combined Cycle Power Plant

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Researched by Industrial Info Resources (Sugar Land, Texas)--A consortium formed by South Korean companies Korea Electric Power Corporation (NYSE:KEP) (KEPCO) (Seoul) and Samsung C&T Corporation (Seoul) with Mexico's Techint S.A. de C.V. (Mexico City) won the bidding for the construction of the Norte II combined-cycle power plant, which will be located 33 kilometers from the city of Chihuahua.

The bidding, which was opened in December 2008 by Comisión Federal de Electricidad (CFE) (Mexico City), included a build, own, operate (BOO) contract for a combined-cycle power station with a minimum installed capacity of 376 megawatts (MW) and a 25-year fixed-price power purchase agreement.

The $418 million investment proposal presented by the winning consortium involves the installation of two gas turbine generator sets with heat-recovery steam generators attached to a steam turbine generator with an installed capacity of about 400 MW. The established generation price is 1.1214 Mexican pesos (US 8.81 cents) per kilowatt-hour (kW/h). The contract signing is scheduled for September 7, 2010.

The consortium awarded a turnkey contract to another company in the Samsung Group, Samsung Engineering Company Limited (SEO:028050) (Seoul) for the construction of the power island, while Techint S.A. de C.V. will be in charge of the balance of plant construction.

Construction kickoff is scheduled for January 2011, and commercial operation should begin in May 2013.

Other bidders for the project included a consortium of Mitsubishi Corporation (OTC:MSBHY) (Tokyo) and Kyushu Electric Power Company Incorporated (Fukuoka, Japan); Mitsui & Company Limited (NASDAQ:MITSY) (Tokyo); Iberdrola Energía S.A. and a consortium formed by Abengoa México S.A. de C.V. and Abeinsa, Ingeniería y Construcción Industrial S.A.

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