Conduit Capital Announces Two Power Generation Investments in Mexico
NEW YORK, NY, September 26, 2006 – Conduit Capital Partners, LLC, a private equity investment firm focused on the independent electric power industry in Latin America and the Caribbean, today announced the completion of two new investments in Mexico through Conduit's recently closed $393 million Latin Power III fund.
Latin Power III committed to invest $9 million in Benito Juarez, a project consisting of the development and construction of a hydroelectric power plant in the southern Mexico state of Oaxaca. Clients will include well-known industrial companies that will purchase energy through long-term contracts in U.S. dollars or the equivalent. The fund also committed to invest $8.8 million in SOGAP V, consisting of the development of nine peak-shaving and cogeneration projects for various sites in six different Mexican states. The SOGAP plants will provide energy services to Mexico's largest appliance manufacturer, Controladora Mabe S.A. de C.V., which is a 48%-owned subsidiary of General Electric.
"We are pleased to close these investments, which are consistent with Conduit's focus on small to medium size power facilities that can obtain their revenue in U.S. dollars," said J. Scott Swensen, Chairman, Conduit Capital. "With Benito Juarez, we have once again partnered with a proven local developer, Corporación Méxicana de Hidroelectricidad, with whom we've worked on three prior projects that have been completed on time and on budget. This investment, coupled with Conduit's existing hydroelectric assets, is the only portfolio of private hydroelectric generation assets in Mexico.
"We are equally pleased with the SOGAP investment, for which LP III has partnered with INCO, a Mexican industry leader for related projects. Importantly, the market for independently generated power continues to grow, evidenced by the demand we see from major multinational corporations, such as GE," Swensen continued.
Benito Juarez is a $28 million project that, through hydroelectric power, will generate 12 MWs. The facility is expected to be complete within 22 months. Upon completion of Latin Power II and III projects under development with Comexhidro, the total portfolio capacity between LP II and LP III in Mexico can be expected to reach critical mass of 150 to 200 MWs.
SOGAP V is a $32 million project that will generate 45 MWs. While the development period for the entire project is expected to be 18 months, the project is being built in stages and the first two plants are expected to come on line by the fourth quarter of 2006.
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