Iberdrola wins US$20mn transmission contract

Mexico's state power company CFE has awarded the Iberinco subsidiary of Spanish power company Iberdrola a US$20mn contract to build 59.8km of underground transmission lines and expand two associated 115kV substations, Iberdrola announced. Work is expected to start immediately and will take 12 months. The project is in the northern states of Coahuila and Durango, an Iberdrola source told BNamericas. The lines will transmit power generated from La Laguna II, a 500MW combined cycle power plant under construction in Durango state. Iberdrola, which won the contract to design, build and operate the US$350mn plant in 2002, expects to start commercial operations in April 2005, the source said. The Spanish company will sell output to the CFE under the terms of a 25-year power purchase agreement (PPA).