Trust agreement clears way for project in Mexico

Comision Federal de Electricidad (CFE) of Mexico has signed a trust agreement with a four-company consortium, clearing the way to seek international financing for the Samalayuca II power plant project, which is expected to cost (US)$600 million.

Consortium members are General Electric Co., Fairfield, Conn., USA; Bechtel Enterprises Inc., San Francisco, Calif., USA; Empresa Group ICA, Mexico City, Mexico; and El Paso Natural Gas Co., El Paso, Texas, USA.

CFE, Mexico`s government-owned utility, will lease the plant from the trust under a 20-year build-lease transfer agreement. Samalayuca II will be a 700-MW combined-cycle power plant located next to the existing Samalayuca I plant, near Chihuahua, Mexico, and is scheduled to enter commercial service in 1997.