Jorf Lasfar Energy Company (JLEC)

The Project

Jorf Lasfar Energy Company (JLEC)

Jorf Lasfar (Arabic for "Yellow Cliffs")[1] is a deepwater commercial port located on the Atlantic coast of Morocco.[2] In terms of the volume of product processed, as of 2004, it was considered the second most important port in Morocco (just after Casablanca).[3] It is home to a swiftly expanding industrial quarter,[4] which includes both major artificial fertilizer and petrochemicalfactories.[1] Its harbor is well equipped for the exportation of phosphate rock (transported from Gantour and Ouled Abdoun)[1] and various chemicals such as pure sulphur, ammonia, and sulphuric acid.[5]

The city is home to the largest independent power station in the country—primarily funded by investments from the Swedish-Swiss company ABB Group and the American company CMS Energy—which was thought to be capable of creating a third of Morocco's total power output.[6] The investment, numbering $1.5 billion,[7] was the single largest foreign investment on Moroccan soil up until that point.[6]

Project Description

"Morocco was the first country in North Africa to introduce IPPs." [Note: IPP is the acronym for Independent Power Producers], according to Daniel Müller-Jentsch in the World Bank Publication "The Development of Electricity Markets in the Euro-Mediterranean Area: Trends and Prospects for Liberalization and Regional Integration, Bände 23-491", published in 2001, page 50.

Müller-Jentsch continues: "At a total cost of about $ 1.5 billion, Morocco's 1,350 MW power project in Jorf Lasfar is the largest independent power facility in the region. [...] It will eventually generate one third of Morocco's power supply and is the country's biggest foreign investment ever. In late 1997, and after extensive negotiations, the 30-year BOT contract between the Moroccan government and a joint venture of the Swedish-Swiss ABB and CMS Energy of the US was concluded. The complex package includes the construction of two units with a total capacity of 696 MW, as well as the transfer (privatisation) of two existing plants with 660 MW from ONE. Other elements of the deal are a concession to operate the coal terminal of the Jorf Lasfar port and a 30-year power-purchasing agreement with ONE."

 

Financial Advisory

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Key Characteristics

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Financing Package

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