Chapter 9

Bajio, La Rosita and TEG, Mexico

Introduction

The case studies in this chapter and Chapters 7 and 8 examine five power projects in Mexico.
Please refer to the ‘Introduction’ in Chapter 7 for a brief overview of the projects.

Type of project

Natural-gas-fired power plants.

Country

Mexico.

Distinctive features

• Oversizing for sales to industrial customers (Bajio, La Rosita I & II).


• Site selection by project sponsors (La Rosita I & II).


• Fuel supply risk assumed by project sponsors (La Rosita I & II).


• ‘Inside the fence’ project financed under Mexican self-supply legislation (TEG I & II).


• Commercial paper facility to reduce financing cost (Bajio).

Description of financing

Bajio

• US$22.5 million Inter-American Development Bank (IDB) A loan.


• US$113 million B loan syndicated by BNP Paribas, Citibank, Deutsche Bank and
  Dresdner.


• US$215 million commercial paper facility provided by Citibank.

La Rosita I & II

• US$625 million commercial bank financing, US$425 million covered by political
  risk insurance from Export Development Corporation of Canada.

TEG I

• US$75 million IDB A loan.


• US$102 million IDB B loan.