InfraRed Infrastructure Fund V (the “Fund”) has completed the acquisition of a 35.5% equity interest from Macquarie Capital in the Norte III project (the “Project”), a 907MW combined-cycle gas turbine project, currently under construction near Ciudad Juárez, Mexico.
The project will benefit from availability-based revenues paid by government-owned Comisión Federal de Electricidad (“CFE”) under a 25-year, USD-denominated PPA. In parallel, our business partner in Mexico, Invex Infraestructura, has acquired a 10.0% equity interest in the Project. Macquarie Capital and Techint Engineering & Construction (“Techint E&C”) will remain co-shareholders in the Project.
The construction will be carried out by Techint E&C, an engineering, procurement and construction (EPC) services company with over 70 years of experience in the oil & gas, power, mining, infrastructure & architecture civil works and industrial plants sectors worldwide. Construction completion is due in 2019 and the Project will operate under a long-term contract with the CFE.
This project is the Fund’s third investment in Mexican energy infrastructure following the acquisition of two greenfield solar projects in 2017.