Allen & Overy has advised longstanding client TAQA and Jorf Lasfar Energy Company 5&6 on the project financing for the 700MW expansion of the Jorf Lasfar power plant in Morocco.
Jorf Lasfar is the largest coal-fired power complex in the MENA region and the first independent power producer (IPP) in Morocco. Jorf Lasfar is also the largest power plant in Morocco and already supplies 40% of the country's electricity output.
The expansion in the form of two additional units is a key infrastructure project for Morocco’s energy strategy intended to meet the needs of ONEE (Office National de l’Electricité & de l’Eau Potable) and increase the country’s installed electricity generation capacity. The 700 MW expansion will bring Jorf Lasfar’s gross capacity to 2056 MW.
Allen & Overy partner François Duquette who led the transaction from the firm's Casablanca office, commented:
"This is the biggest transaction in the energy sector in Morocco since 1997. It has set a new standard for large scale financings in the region".
In a double first for the Moroccan market, the expansion used Japanese and Korean ECAs in addition to a combination of Moroccan and European banks. It is the largest international project financing in Morocco in over a decade.
The Allen & Overy team
The transaction was run out of Allen & Overy's Casablanca and Paris offices. The Casablanca team was led by Partners François Duquette and Yassir Ghorbal, supported by associates Constantin Esanou and Amine Bourabiat. Partner Tim Scales led from the Paris office, supported by associates Antoine Haddad and Hitomi Komachi.
For further information please contact François Duquette.
The Lenders
BNP Paribas, Société Générale and Standard Chartered Bank are the mandated lead arrangers for the international debt facilities, while Morocco’s Banque Centrale Populaire (BCP) is the mandated lead arranger for the Moroccan Dirham credit facilities, representing approximately 40% of the total debt. Japan Bank for International Cooperation (JBIC), Nippon Export and Investment Insurance (NEXI) and Export-Import Bank of Korea (Korea Eximbank) are providing direct loans and loan guarantees for more than 50% of the total project debt.
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