Ciudad Juarez is a strategically-located, industrial city in northern Mexico. It has historically enjoyed strong growth but economic activity has been impeded by flow-on effects from the global financial crisis and cartel-related violence.
In recent years, the city undertook a rebuilding program and the Mexican government identified the construction of the Norte III combined cycle gas plant in Juarez as one of the principal projects in a five-year infrastructure plan to modernise existing infrastructure and strengthen key regions across Mexico. Mexico’s national power company, the Federal Electricity Commission (CFE), solicited bids for the development of the plant in 2014, and the project was finally awarded in March 2015 to a renowned energy company who secured a bridge loan for a portion of the total plant’s cost and started building it. However, after a series of critical challenges and lack of funding, the project stalled. By 2017, the viability of the project was in question and the CFE and bridge lenders were seeking new alternatives to restart the plant’s development and construction.