The 4T paid for Iberdrola plants, but does not control them

The so-called Government of the 4T, headed by President Andrés Manuel López Obrador, paid by 13 Iberdrola electricity generation plants that were “nationalized”but you will have no control operational or administrative on them.

Although the National Infrastructure Fund (Fonadine) has already allocated 2,420 million dollars for the purchase, a private fund will manage the plants: Mexico Infrastructure Partners (MIP)through a trust of Development Capital Certificates (CKD).

The Federal Economic Competition Commission (Coffee) authorized last February 13 the purchase with the condition that the State does not interfere in the operation of the plants on the market; That is to say, Q4 paid for Iberdrola plants, but will not control them.

A Reform report points out that another condition of the Cofece was that Finadin could not freely remove MIP as administrator of the trust, what officials of any agency, including the CFE, can participate in its Technical Committee or provide any type of advice or service to the plants.

Besides, for relevant decisionswill be required the vote of more than half of the holders of independent stock certificatesthat is to say, private investors unrelated to Fonadin.

Q4 paid for Iberdrola plants, but does not control them, who will?

“Nor in the operation of power plants or in any decision relating to prices, energy generation volumes or any other similar aspect, so MIP will be the one who has control of the management and administration of said plants“says resolution CNT-101-2023.

In addition to the resources of Fonadine, the full payment of 5,883 million dollars Iberdrola financed with loans from Nafin, Bancomext and Banobras, points out a report of Remodeling.

In accordance with the conditions established by Cofece, Fonadine will retain maximum 51% of participation in the Trust.

Stock certificates so that the Afore buy them

To this end, in the coming weeks will have to launch stock certificates so that the Fund Administrators for the Reiro (Afore) buy them and the government’s participation in the 13 plants is diluted.

Las Iberdrola plants have contracts to provide all their energy to the Federal Electricity Commission (CFE), but when they expire they will be able to sell freely to any client, competing with the state company.

Fonadine acquires not the plants, but the commercial companies (companies) that have the plants on their balance sheet, so Q4 paid for Iberdrola plants, but does not control them. Here are other terms of the transaction.

It also acquires the employees of each commercial company.
The acquisition involved 12 companies, since one includes two plants.
In total there are 470 workers who are part of these companies.
The CFE is a client and has no participation in the operation of the plants.
What Cofece authorized is a new participant in the market with private participation.