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Title: Booming Mexican market may flourish with free trade

Journal Article · · Engineering News-Record; (United States)
OSTI ID:5628434

Private power developers and utilities in the US are courting deals to build powerplants or supply electricity in Mexico. An the pending North American Free Trade Agreement, if passed, is expected to vastly increase the Mexican market for US constructors and manufacturers in the power sector. Ironically, a powerplant now under construction near the US border could be a factor in scuttling the NAFTA treaty. Mexico is seeking more than $18 billion in private sector investment. New regulations there now allow foreign firms to own 100% of the powerplants they build. The government-owned utility, Comision Federal de Electricidad, will offer firms power purchase agreements lasting up to 30 years. CFE also offers build-operate-transfer arrangements. It recently selected a consortium including General Electric Co., Bechtel Enterprises Inc., and Mexico's Groupo ICA to build the $600-million, 700-Mw, gas and oil-fired Samalayuca II project, about 20 miles south of El Paso, Texas. It will revert to CFE after 15 years.

OSTI ID:
5628434
Journal Information:
Engineering News-Record; (United States), Vol. 231:13; ISSN 0013-807X
Country of Publication:
United States
Language:
English