Spain’s Iberdrola Ingenieria y Construccion has started work on a 430 MW cogeneration power plant in Salamanca in Mexico’s Guanajuato state.

The Iberdrola subsidiary was chosen over seven other energy groups in an international tender organized by the state-owned company Comision Federal de Electricidad (CFE), with which it signed the agreement for the US$320 million energy project.

The CHP plant will be located next to a refinery belonging to state-owned oil giant Petroleos Mexicanos (Pemex).

As well as the cogeneration plant, the project that the company will carry out at the facilities of the Pemex refinery includes a compact substation and eight 230 kV power transmission lines.

The project is scheduled for completion in December 2013.

Iberdrola Ingenieria has won 46 deals worth about $2.5 billion since it began operating in Mexico in 2001.

Last year it won a $70 million contract to build two transmission lines running more than 220 km and two substations in the western Mexican state of Jalisco.

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