You are hereHome SectorsMorocco
TAQA completes US$1.4 billion project financing arrangements for Jorf Lasfar power complex in Morocco
Source: BI-ME , Author: Posted by BI-ME staff
Posted: Fri June 22, 2012 11:20 am

UAE. Abu Dhabi National Energy Company PJSC (TAQA), today announced that its wholly-owned subsidiary, Jorf Lasfar Energy Company 5&6 SA, has  signed financing arrangements for US$1.4 billion equivalent of 16-year, multi-currency non-recourse project financing for the 700 MW expansion of TAQA’s Jorf Lasfar coal-fired power complex in Morocco.

BNP Paribas, Société Générale and Standard Chartered Bank are the mandated lead arrangers for the international debt facilities, while Morocco’s Banque Centrale Populaire (BCP) is the mandated lead arranger for the Moroccan Dirham credit facilities, representing approximately 40% of the total debt.

Japan Bank for International Cooperation (JBIC), Nippon Export and Investment Insurance (NEXI) and Export-Import Bank of Korea (Korea Eximbank) will provide direct loans and loan guarantees for more than 50% of the total project debt. This is the first time the Japanese and Korean export credit agencies have participated in a project finance transaction in Morocco.

Jorf Lasfar is the largest coal-fired power complex in the MENA region and the first independent power producer (IPP) in Morocco.

The expansion is a key infrastructure project for Morocco’s energy strategy intended to meet the needs of ONEE (Office National de l’Electricité & de l’Eau Potable) and to increase the country’s installed electricity generation capacity. The 700 MW expansion will bring Jorf Lasfar’s gross capacity to 2,056 MW.

TAQA’s roots lie in the provision of power generation and water desalination capabilities in Abu Dhabi, and this has remained a key part of its business. TAQA brings world class technical and operational expertise and a proven track record in developing challenging power projects. TAQA’s growing international power business is a core part of TAQA’s expanding portfolio across the MENA region.

Frank Perez, Executive Officer and TAQA’s Head of Power & Water said: “This announcement marks a significant milestone in TAQA’s development as a major provider of power generation in Morocco and across the MENA region. We are excited to play a crucial role in the national energy strategy of a rapidly growing country like Morocco.

"Despite the on-going instability in global financial markets we have successfully secured sophisticated international financing arrangements from Asian, European, and Moroccan lenders across multiple currencies totalling USD 1.4 billion equivalent. Our profile, as the sponsor, developer, and operator of this significant infrastructure project together with ONEE and the Moroccan Government's support, has undoubtedly helped secure favourable terms.” 

The long-term debt, maturing in 2028, represents the equivalent of US$1.3 billion. The medium-term debt, maturing in 2014, will amount to the equivalent of US$100 million.

The expansion units 5 and 6 are scheduled to be commissioned in December 2013 and April 2014 respectively. The EPC contract for the expansion was awarded to Mitsui & Co (Japan) and Daewoo Engineering & Construction (Korea) in 2010.

The expansion is expected to generate 3,000 direct jobs and 2,000 indirect jobs during construction. In the long term, the new units are expected to provide 135 jobs while providing indirect employment to 1,000 people.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: October 29, 2014
UAE. Total wealth in the GCC stood at US$ 1.7 tillion in 2014, up 4.75% from 2013; Total wealth in Saudi Arabia and UAE grew by 5%; Global household wealth up 8.3% to US$263 trillion, driven by the US and Europe, according to Credit Suisse Research Institute.
date:Posted: October 29, 2014
UAE. Significant increase in inflows of private capital into UAE in 2014; UAE seen as hub between Africa and Asia; Political stability remains a major factor driving flows; UAE clear winner in the region, as other GCC countries see net outflows of private capital.
date:Posted: October 28, 2014
INTERNATIONAL. Foreign policy is what a president wishes would happen; foreign affairs are what actually happen; the problem that Obama has, which has crippled his foreign policy, is that his principles have not been defined with enough rigor to provide definitive guidance in a crisis.
UAE. Total wealth in the GCC stood at US$ 1.7 tillion in 2014, up 4.75% from 2013; Total wealth in Saudi Arabia and UAE grew by 5%; Global household wealth up 8.3% to US$263 trillion, driven by the US and Europe, according to Credit Suisse Research Institute.
dhgate