Power Station in Mexico

KEPCO President Jo Hwan-ik (third from left) participates in the completion ceremony for the North II Gas Combined Cycle Power Plant on March 4 (local time).
KEPCO President Jo Hwan-ik (third from left) participates in the completion ceremony for the North II Gas Combined Cycle Power Plant on March 4 (local time).

 

The Korea Electric Power Corporation (KEPCO) held a ribbon-cutting ceremony for its 433 MW-capacity North II Gas Combined Cycle Power Plant in Chihuahua, Mexico on March 4. The ceremony was attended by over 120 people, including KEPCO President Jo Hwan-ik, Governor of Chihuahua Cesar Duarte Jaquez, personnel from the Comision Federal de Electricidad (CFE), the Korean Ambassador to Mexico, and creditors such as the Export-Import Bank of Korea.

A consortium of KEPCO and Samsung C&T won the deal in August 2010 through tough competition against global leaders like Iberdrola and Abengoa of Spain, and Mitsubishi and Mitsui of Japan. The successful completion of the construction at this time is expected to lead to an increasing presence of Korean power generation companies in the Mexican power market, which has been dominated by Spanish and Japanese players.

The project has a very stable business structure in which the CFE purchases 100% of the produced electricity and guarantees payments. KEPCO participates in it as the major stockholder with a share of 56%. The net profits from the produced electricity are estimated to reach US$210 million for 25 years to come, to contribute greatly to the national power company’s debt restructuring efforts.

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