State-owned oil explorer and power supplier Abu Dhabi National Energy Co (TAQA) announced on Thursday it is signing a $1.4 billion financing arrangement for the expansion of its power plant in Morocco.
TAQA’s Jorf Lasfar coal-fired power plant is a 16-year multi-currency project financing to increase production capacity by 700 megawatts. It is the biggest coal-fired power plant in the Middle East and North Africa region, and Morocco’s first independent power producer.
TAQA said the expansion will increase the plant’s gross capacity to 2,056 megawatts.
BNP Paribas, Societe Generale and Standard Chartered are lead arrangers for the international funding, while Morocco’s Banque Centrale Populaire is lead arranging the Moroccan credit facilities.
The statement added that the latter will represent about 40% of the total debt being raised.
Direct loans and guarantees from Asian export credit agencies and other financial institutions will provide for more than 50% of the total project debt.
TAQA’s chief executive said that North African states offered the company opportunities for new power and water projects in an interview with Reuters last month.