CFE, Mitsui, Calpine sign Valladolid III contract

Mexico's state power company CFE has signed a US$265mn contract with the Compania de Generacion de Valladolid to build, own and operate the 525MW Valladolid III combined cycle thermoelectric project in Yucatan state, the CFE announced Sunday. Japan's Mitsui and US-based Calpine Corp have respective 55% and 45% stakes in the project. Japan's Toshiba will serve as the engineering, procurement and construction subcontractor, and will supply the steam turbine. Under contract terms, commercial operations will start mid-2006. The CFE will buy power from the plant under a 25-year power purchase agreement, largely supplying industrial and domestic clients in the Yucatan peninsula.