May 10 2010
The President of Guatemala, Alvaro Colom, along with cabinet ministers and representatives from AEI and the private sector, led a groundbreaking ceremony today to inaugurate the construction of Jaguar Energy Guatemala LLC’s new 300 MW solid fuel fired power generation facility. The ceremony was held this morning at the power plant’s site near Puerto Quetzal, Guatemala. The project’s total investment is expected to be above US $700 million with commercial operations of the power plant scheduled for 2013.
"One of our Government's priorities has been to implement and execute a plan to diversify the country's energy matrix, promoting installation of more efficient power plants, according to the energy needs of the country,” said Mr. Colom, the President of Guatemala. “Jaguar Energy is the result of a joint effort with the private sector to improve the availability and reliability of electricity service in Guatemala, creating the conditions to obtain energy at better prices."
“AEI believes that this day is an important step for our company, for Guatemala and for the entire Central American region. This project will significantly increase the supply of reliable, thermal base load energy in Guatemala. Importantly, this energy will be priced against global solid fuel market prices resulting in competitively priced energy that diversifies Guatemala’s energy matrix and reduces the exposure to global oil prices,” added Jim Hughes, CEO of AEI. “We would not have been successful in the absence of a demonstrated history in Guatemala of stable legal and regulatory frameworks and a fair and equitable investment environment with clearly defined energy policies, with which the project is entirely consistent.”
The Jaguar Energy power plant will be a solid fuel-fired power generation facility with an installed capacity of 300 MW that will be built by China Machine New Energy Corporation. It is the result of an international public bidding process for a new project and long-term Power Purchase Agreements held by the local distribution companies DEORSA and DEOCSA under the supervision of the Minister of Energy and Mines and the National Electricity Commission.
The power plant will be equipped with proven technology that allows coal and other solid fuels to be used to generate reliable and cost efficient electricity within strict international standards on environmental, health and safety guidelines including compliance with the Equator Principles and International Finance Corporation's Performance Standards and Environmental, Health and Safety Guidelines.
Jaguar Energy recently closed long-term financing that includes a $350 million construction and term loan to be provided by a syndicate of regional and international banks lead by Banca de Inversión Bancolombia Corporación Financiera S.A. (BI Bancolombia) and the Central American Bank for Economic Integration (CABEI). The remaining funds for the project will come from AEI equity and from vendor financing provided by the EPC contractor.
Source: http://www.aeienergy.com/?id=1