Calpine Corp is to sell its 45% stake in the Valladolid III power plant on Mexico's Yucatan Peninsula to its Japanese partners Mitsui and Chubu Electric Power Co.

Calpine will get a cash payment of $43 million, less a 10% holdback, in return for its interest in the gas-fired 525 MW power plant. The buyers will return the holdback one year following closure of the deal.

The plant is scheduled for completion in June and has a 25-year power purchase agreement with Mexico’s Comision Federal de Electricidad.