Wednesday, August 20, 2014

México: Update--Investors Can Now Bid on 16 Energy Projects Funded at $4.9 Billion

According to The Latin American TribuneAccording to The Latin American Tribune, investors can now bid on sixteen power projects expected to draw about $4.9 billion in investment, the Mexican Federal Electricity Commission (CFE) said.

The projects will allow the power agency to “offer better quality service at a lower cost for the benefit of all Mexicans,” CFE chief Enrique Ochoa said.

This is the second package of projects announced by the CFE since last month.

Two gas pipelines, two gas lines and three combined-cycle power plants will be put out to bid, Ochoa said.

One project includes the upgrading of a hydroelectric power plant, as well as the overhaul of three transmission lines, Ochoa said.

COMMENT: The CFE put five projects worth $2.8 billion up for bidding in July, pushing the total expected investment aimed at reducing electricity losses, which are estimated at 8%, to $7.7 billion.

“The latest projects up for bids will benefit industry, the service (sector) and households in thirteen entities in the republic,” Energy Secretary Pedro Joaquín Coldwell said.