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Mexico Seeks IPP Bids

Issue 1 and Volume 102.

Mexico Seeks IPP Bids

The Mexican government plans to solicit bids by January from outside investors on a variety of independent power projects (IPP), according to statements from government officials. The country needs to increase its electric generating capacity from the current 35,000 MW to 45,000 MW by 2006. Jesus Reyes Heroles, Mexico`s Secretary of Energy, said the government is seeking foreign investors for eight projects, with a total value of (US)$10 billion. These projects are expected to comprise approximately 85 percent of new capacity through 2006. The Federal Electricity Commission (CFE) recently auctioned off several construction projects. The government only recently allowed private investment in the electricity sector.

“1998 will be the year for electricity,” said Reyes Heroles. “We have the regulatory and legislative framework in place to actually launch the program.” Power developers have been frustrated by the nation`s slow pace in developing a working regulatory framework to govern the Mexican power markets. p