Ciclo Combinado Tierra Mojada S.A. de R.L. de CV.
On June 20, 2017, MIGA issued a guarantee of US$962.9 million covering investments from Fisterra Energy Holdings to Ciclo Combinado Tierra Mojada S.A. de R.L. de CV, (the Project) in the Republic of Mexico. The MIGA guarantee will cover equity, quasi-equity and shareholder loans against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract for a tenor of up to 15 years. The coverage will be used for current investments as well as potential future investments in support of Project operations and debt service.
The Project consists of the design, construction, operation and maintenance of a gas-fired combined cycle gas turbine power plant with approximately 874 MW of capacity. The new plant will be located in Zapotlanejo, Jalisco - 35km east of Guadalajara, Mexico’s second largest city. The power will be transmitted thought two transmission lines that will be connected to the existing 400kV Atequiza-Aguascalientes transmission line and the Atequiza-Zapotlanejo transmission systems located at 1km and 2km from the Project site, respectively. The natural gas required to power the Project will be supplied by the pipeline system Villa de Reyes-Aguascalientes – Guadalajara.
The project is a category B under MIGA’s Policy on Environmental and Social Sustainability. Click here for the project’s Environmental and Social Review Summary.
The Project is one of the first private sector generator initiatives to be implemented under the recently enacted Energy Sector reform of 2013. It consists of a combined cycle gas turbine generating electricity and selling it to Mercado Eléctrico Mayorista (MEM) which is operated by National Center of Energy Control (CENACE), the country's new wholesale energy market broker, and also to CFE Calificados through a Hedge Agreement for the Purchase and Sale of Capacity and Energy (Contrato de Cobertura para la Compra y Venta de Potencia y Energía Eléctrica). The Project uses the most cutting edge gas technology in the market and is strategically located close to areas of high demand in the country; both contribute to making the Project competitive in terms of cost of generation.
The Project is aligned with the Government’s Energy Strategy, Prospectiva Del Sector Electrico 2015-2029. It is expected that inefficient heavy-fuel power plants will be gradually shut down as more efficient technology, such as that of this Project, comes into operation. The gradual substitution of old, expensive and polluting technology with more efficient and cleaner energy will help the Government reduce national CO2 emissions.
Thus Project is expected to contribute to the benefits of energy efficiency through the use of latest technology to lower the cost of energy, demonstration effect as one of the first private sector generators post Energy Reform, and also to support the Government’s Reform objectives of greater private sector participation and gradual displacement of inefficient, more polluting power plants.