State-owned electricity company CFE has furthered Mexico’s electricity security with the announcement of two contract awards.

Spain’s Abengoa said it has been awarded a $1.55bn contract to build and operate a 924 MW combined-cycle power plant in the northern Mexican border city of Ciudad Juarez, a project that will boost the supply of electricity in northern Mexico.
The Norte III project will be Mexico’s largest combined-cycle plant and is the second that Abengoa is developing for CFE after Centro Morelos, which is currently under construction and will have a generating capacity of 640 MW.

Meanwhile CFE awarded a $386.4 million contract to build a 240 MW hydroelectric power station in southern Mexico to a consortium comprising a unit of China’s Sinohydro Corp.

In a statement late on Friday, the state power company said the group composed of Sinohydro Costa Rica, Omega Construcciones, Desarrollos y Construcciones Urbanas and CAABSA Infraestructura had won the contract with a bid almost $20m below the CFE’s budget ceiling for the project of $405.6 million.

The plant, known as Chicoasen II, is expected to provide 537,000 homes with electricity in the southern state of Chiapas, when it goes online in 2018.