November 1, 2000
Innovative project financing backed InterGen's Bajío
power plant in San Luis de la Paz, Mexico.
"Once the lights start going out, a lot of the issues holding up new power plants in Brazil will get sorted out," says Christopher Dymond, vice president at the Washington investment banking and consulting firm Taylor-DeJongh, only half-joking about the difficulty Brazilian independent power projects (IPPs) are having in securing power purchase agreements (PPAs) critical for financing. Fortunately, there have been few major blackouts in Brazil as yet, and a couple of IPP financing deals are likely to be signed soon.
Independent power projects represent the electric industry's future in Mexico and Brazil's deregulated markets. But will the necessary project financing come through?