Clifford Chance has advised sponsors GDF Suez, Nareva and Mitsui on the US$2.6 billion, 18 year financing of a 1,386 MW ultra-supercritical coal-fired independent power project near the port of Safi, Morocco.

The power plant will represent approximately 20% of Morocco's installed capacity and provide substantial employment and development opportunities to the local community. The Moroccan state body, l'Office National de l'Electricité et de l'Eau Potable (ONEE), will be the sole offtaker from the plant under a 30-year power purchase agreement.

The project features a diverse lending group, with Japanese export credit agencies JBIC and NEXI providing direct and covered loans respectively, eight international banks, two Moroccan banks and a structured Islamic tranche provided by the Islamic Development Bank representing the first multi-tranche cross-border Islamic financing into Morocco.

The project will be the first in Africa to use ultra-supercritical technology, which is characterised by optimal environmental performance and higher efficiency compared to conventional plants.

The international team of Clifford Chance lawyers, operating across six offices, was led by Paris-based partner Anthony Giustini with Jonathan Lewis advising on hedging. Tokyo-based partner Ross Howard advised on the project documents.

Dubai-based partner Qudeer Latif advised on the Islamic tranche and Casablanca-based partner Mustapha Mourahib assisted with the equity bridge loan facilities.

Further assistance was provided by partners Lounia Czupper, based in Brussels, David Metzger, based in London and Masayuki Okamoto, based in Tokyo.