Spanish energy major Gas Natural has signed an agreement with the Town Council of Malaga to build a 400 MW, combined-cycle gas-fired plant requiring an investment of more than €200 million.

The plant, which will be located in Maqueda, is expected to come into operation during the second quarter of 2008 and includes the use of water from the Waste Water Purifier Plant (EDAR) at Guadalhorce, for the plant’s cooling system.

Contracts for the EPC on the development have not be confirmed.