2x693MW Safi IPP in Morocco reaches Financial Close

L’Office National de l’Electricité et de l’Eau Potable (ONEE) and Safi Energy Company S.A. (SAFIEC) have achieved financial closure 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 total project investment is estimated at US$2.6 billion (MAD23 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.

The project will 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.