Fuerza Eólica negotiates financing for 150MW wind project

Mexican wind power project Fuerza Eólica del Istmo is at a "crucial" stage of negotiating its 150MW wind project at La Ventosa in Oaxaca state, a source close to the process told BNamericas. Fuerza Eólica del Istmo on the Tehuantepec isthmus is a joint venture between US-based Clipper Wind Power and Mexico's Fuerza Eólica. Potential financiers include the World Bank and Mexican commercial banks, and although there is some caution - this is the first major wind plant in Mexico - there is interest in providing long-term low cost financing, the source said. The project was recently expanded due to increased demand from the registered offtaker, cement manufacturer Cruz Azul. According to energy regulator CRE, it will now be built in two phases, the first for 51 MW, scheduled to start by December 2004 instead of September 2003, and the second for 99MW, scheduled for December 2005 instead of September 2004. The partners are currently evaluating tenders for contracts to purchase equipment and the company has denied press reports that US-based General Electric has already been chosen. "Those reports are wrong," the source said. According to the CRE resolution, the company is contemplating 100 turbines of 1.5 MW each.