Project agreements finalized for Morocco wind farm

Morocco’s state utility Office National de l’Electricite (ONE) has concluded agreements with International Power and Nareva Holding for a 300 MW wind farm at Tarfaya, reports MEED.
 
According to MEED, the power purchase agreement (PPA) for the sale of electricity from the wind farm has been agreed and signing is imminent. The PPA will run for 20 years at a price of MD 7.548 ($5.16) per kWh.
 
ONE selected the UK/local partnership in August 2010. The bid has fully committed bank backing from local lenders Attijariwafa Bank and the Moroccan subsidiary of Groupe Banque Populaire. It will be financed on a 75:25 debt:equity basis, with the two sponsors providing half of the equity each.
 
Bids to build the project were entered in July 2009 in three separate envelopes containing the technical, financial and tariff elements of each submission. 
 
A rival bid for the contract was submitted by France’s GDF Suez. However, it was deemed non-compliant as it was not fully-funded. While GDF Suez’ bid had some backing from Belgium’s Fortis and France’s Credit Agricole CIB, it was not fully funded and so ONE declared it invalid.
 
Nevertheless, due to the merger of GDF Suez and International Power earlier this year, the disqualification became a moot point. The winning bidders are advised by the UK’s Clifford Chance. GDF Suez appointed the US’s Vinson & Elkins and Shearman & Sterling is acting for its lenders.
 
For more renewables news, click here
 
 

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...