TAQA finalises $1.4bn funds for Morocco power site
Financing deal will help fund 700MW expansion at coal-fired plant
Abu Dhabi National Energy Company (TAQA) has reported that its subsidiary Jorf Lasfar Energy Company has reached an agreement over USD $1.4 billion in project financing for the 700 MW expansion of the company’s Jorf Lasfar power project in Morocco. The expansion at the coal-fired plant will see the facility’s gross capacity raised to 2,056 MW, with unit commissioning scheduled for December 2013 and April 2014.
The mandated lead arrangers for the international debt facilities are BNP Paribas, Societe Generale and Standard Chartered Bank, representing around 40% of the total debt. Japanese and Korean credit agencies – Japan Bank for International Cooperation, Nippon Export and Investment Insurance and Export-Import Bank of Korea – are providing over 50% of total project debt.
“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 ongoing instability in global financial markets, we have successfully secured sophisticated international financing arrangements from Asian, European and Moroccan lenders across multiple currencies, totaling USD 1.4 billion equivalent,” said Frank Perez, TAQA executive officer and head of power and water.
The EPC contract for the site expansion was awarded to Mitsui & Co and Daewoo Engineering and Construction in 2010.