Guatemala City, May 9 (IANS/EFE) Jaguar Energy Guatemala, a subsidiary of Houston-based Ashmore Energy International (AEI), plans to invest a total of $700 million to build a power plant along Guatemala's south-central coast, a minister said.

The 300 MW plant, to be fed by coal and other solid fuels, will be located in the town of Masagua, Escuintla province and is slated to come online in 2013, the local press cited Guatemalan Energy Minister Carlos Meany as saying.

China Machine New Energy Corporation will build the facility.

Meany said commercial operations could begin in May 2013 and enable Guatemala to lower the proportion of electricity produced by petroleum derivatives to just 4.6 percent.

AEI CEO Jim Hughes noted at Friday's ground-breaking ceremony that the project will result in "competitively priced energy that diversifies Guatemala's energy matrix and reduces the exposure to global oil prices".

AEI said in a press release that Jaguar Energy "recently closed long-term financing that includes a $350 million construction and term loan to be provided by a syndicate of regional and international banks".