Safi independent power project (2x693 MW) in Morocco reaches Financial Close and will start construction
L’Office National de l’Electricité et de l’Eau Potable («ONEE») and Safi Energy Company S.A. («SAFIEC») today announced the signing of the project finance agreements for the Safi coal-fired power project located near the city of Safi in Southwest Morocco. SAFIEC is owned by a consortium of GDF SUEZ S.A. (France), Mitsui & Co., Ltd. (Japan) and Nareva Holding (Morocco), which won the project after an international open tendering process. The project cost is estimated at US $2.6 billion (MAD 23 billion).
The Japan Bank for International Cooperation, several commercial banks, the Islamic Development Bank and Moroccan banks Attijari Wafabank and Banque Centrale Populaire will act as lenders. Following completion of the plant, expected in 2018, the electricity produced will be sold to ONEE for 30 years under a Power Purchase Agreement.
The 2×693 MW Safi coal-fired power plant will use state-of-the-art ultra-supercritical technology and will be constructed by Daewoo Engineering & Construction Co. (South Korea). Operation & Maintenance will be performed by Safi Energy Company.
Safi is the first coal-fired project in Africa to use ultra-supercritical technology, which is characterized by an optimization of environmental performance and 10% higher efficiency compared to conventional plants. That will enable significant CO2 reductions and lower fuel costs. The project is part of Morocco’s national strategic plan to meet its growing electricity demand at the lowest possible cost whilst respecting the environment.
From the start of construction and throughout its operation, the Safi power project will also contribute strongly to the social and economic development of Morocco and in particular the Safi region, through job creation and the use of local Small and Medium Enterprise (SME) services. The project will also stimulate the further development of the energy and port infrastructure, including the new Safi port, where a coal-shipping terminal to supply the plant is under construction. The construction works for Safi’s new port were launched by His Majesty the King of Morocco in April 2013.
The Project Company «Safi Energy Company S.A.» is owned 35% by GDF SUEZ, 35% by Nareva Holding and 30% by Mitsui & Co.
GDF SUEZ GDF SUEZ develops its businesses (power, natural gas, energy services) around a model based on responsible growth to take up today’s major energy and environmental challenges: meeting energy needs, ensuring the security of supply, fighting against climate change and maximizing the use of resources. The Group provides highly efficient and innovative solutions to individuals, cities and businesses by relying on diversified gas-supply sources, flexible and low-emission power generation as well as unique expertise in four key sectors: independent power production, liquefied natural gas, renewable energy and energy efficiency services. GDF SUEZ employs 147,200 people worldwide and achieved revenues of €81,3 billion in 2013. The Group is listed on the Paris, Brussels and Luxembourg stock exchanges and is represented in the main international indices: CAC 40, BEL 20, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe and Euronext Vigeo (World 120, Eurozone 120, Europe 120 and France 20). In Morocco, the Group, together with its partner Nareva, is constructing the 300 MW Tarfaya wind farm.
Nareva is a Moroccan company established in 2005 and a 100% subsidiary of Sociéte Nationale d’Investissement (SNI). Its mission is to ensure the presence of Moroccan capital in the Energy and Environmental sectors – in partnership with key international players – by building a coherent and balanced asset portfolio. Nareva focuses its development efforts on the management of the water cycle and on power generation from fossil or renewable energy. Nareva is currently operating a 200 MW portfolio including the Akhfennir, Haouma and Foum el Oued wind farms, and is currently building the largest wind farm in Africa at Tarfaya site (300 MW) in partnership with GDF SUEZ.
Utilizing our global operating locations, network and information resources, Mitsui is multilaterally pursuing business that ranges from product sales, worldwide logistics and financing, through to the development of major international infrastructure and other projects in the following fields: Iron & Steel Products, Mineral & Metal Resources, Infrastructure Projects, Integrated Transportation Systems, Chemicals, Energy, Food Resources, Food Products & Services, Consumer Services, Innovation & Corporate Development Business.
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