Abu Dhabi National Energy Company (TAQA) has announced that its wholly-owned subsidiary, Jorf Lasfar Energy Company, has secured financing for the expansion of its coal-fired power complex in Morocco.
The company signed financing arrangements for $1.4 billion equivalent of 16-year, multi-currency non-recourse project financing for the 700 MW expansion of the power complex.
Jorf Lasfar is the largest coal-fired power complex in the MENA region and the first independent power producer in Morocco. The expansion is a key infrastructure project for Morocco’s energy strategy and to increase the country’s installed electricity generation capacity.
The expansion will bring Jorf Lasfar’s gross capacity to 2,056 MW.
Commenting on the deal, 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 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.
Abu Dhabi-based TAQA is one the largest independent power producers in the world and the majority owner of the facilities that provide 98 per cent of the water and electricity requirements in Abu Dhabi. TAQA's power plants are located in the UAE, Morocco, Oman, Saudi Arabia, Ghana, India and the US.