Under the $1.55bn contract, Abengoa will engineer, design and construct the combined cycle plant and will also be responsible for its subsequent operation and maintenance for a 25 year period.
Planned to be completed within 30 months, the power project would create up to 2,000 direct and indirect jobs during the construction phase.
The $700m investment during the construction phase will be financed with a mix of equity and non-recourse debt.
Abengoa will acquire an equity stake in the project, which is expected to generate enough power to supply more than 500,000 homes annually while reducing greenhouse gas emissions and the end cost of electricity to consumers.
The Norte III project is considered to be the largest combined cycle power plant in Mexico and the second to be constructed for the CFE by Abengoa after the 640MW Centro Morelos plant, which is currently under construction.
Separately, Abengoa is also developing two power transmission projects for the CFE.
