Iberdrola has won an international tender for the construction of a new combined cycle power plant in Mexico.

The contract comes just weeks after Mexico passed historic legislation to reform its energy sector.

Under the contract, Iberdrola will build and operate the 300 MW Baja California III plant, selling the energy from the plant to Mexico’s CFE under a 25-year contract. CFE will also supply natural gas to fuel the plant’s two GE gas turbines.

Iberdrola says it will start building the plant in April 2014 and commercial operation is scheduled for August 2016. The Spanish firm already operates over 5200 MW in Mexico and says that the contract will consolidate its position as the country’s largest private electricity producer and second-largest power generator after CFE.

In December Mexico passed legislation designed to provide private investors with more opportunities in the country’s oil, gas and power sectors.