Iberdrola (IBE.MC) plans to invest at least $5bn in Mexico between now and 2018. This was announced by Ignacio Sanchez Galan, chairman of the Spanish multinational electric utility, reports Reuters.

The Comision Federal de Electricidad (CFE) and Iberdrola signed an agreement to collaborate in Mexico’s energy sector, including joint projects. As part of the agreement The Spanish company has committed itself to invest at least $5bn over the duration of the current six-year presidential term.

Galan confirmed that $1.5bn of that investment was already under construction.

Iberdrola is a major foreign player in Mexico, with a current operating capacity in excess of 5200 MW, primarily combined-cycle gas-fired power plants and wind farms.

According to Iberdrola, its willingness to invest in Mexico is based on the good prospects resulting from the energy reforms  being implemented by Enrique Pena Nieto’s government.

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