Highlights

Signing ceremony for the extension of the Power Purchase Agreement of the Jorf Lasfar Thermal Power Plant : 24/01/2020

Signing ceremony for the extension of the Power Purchase Agreement of the Jorf Lasfar Thermal Power Plant

On Friday January 24, 2020 in Rabat, Mr. Mohamed BENCHAABOUN, Minister of Economy, Finance and Administration Reform (MEFRA), and Mr. Aziz RABBAH, Minister of Energy, Mines and Environment, co-chaired the signing ceremony for the extension of the Power Purchase Agreement of the Jorf Lasfar Units 1- 4.

This extension of contract was signed by the National Office for Electricity and Drinking Water, represented by its General Manager, Mr. Abderrahim EL HAFIDI and TAQA Morocco, represented by its Chairman-Management Board, Mr. Abdedmajid IRAQUI HOUSSAINI.

This signing comes within the framework of the implementation of the MEFRA Action Plan, in consultation with the relevant departments, with the objective of restructuring certain Public institutions and Enterprises, in accordance with the Royal Guidelines presented during the Council of Ministers held on October 10, 2018, through the redesign of their economic model and the rebuilding of their financial viability.

It also aims to promote the strengthening of the use of Public-Private Partnerships, particularly in the energy sector, thus allowing investors to have better medium and long-term visibility in terms of investment in this sector.

In addition to ensuring this contract is in line with that of units 5-6, this extension will make it possible to modernize and develop the Power Plant via a global investment exceeding 500 Million dollars, including 1.5 billion dirhams to be paid immediately, and to enhance the basic infrastructure of the plant by avoiding costly additional investments, thereby promoting a reduction in production costs. It will also help to strengthen the production capacities mobilized by ONEE and to secure the supply of electrical energy under favorable conditions in terms of cost and quality of service.

It should be noted that the contract to Power Purchase Agreement of Jorf Lasfar 1-4 units, originally concluded in 1997, had enabled Morocco to strengthen its production and supply of electrical energy.

Please see the TAQA Morocco fact sheet (in French)