Morocco’s ONEE gets $300m loan from China’s Exim Bank

26 September 2014

Morocco‘s State power utility ONEE has obtained a $300-million loan from China Exim Bank to finance a 318 MW coal-fired plant in the eastern town of Jerada.

China‘s Sepco III won a 3-billion dirham ($348-million) tender launched by ONEE last year to build the second coal-fired power plant in Jerada, near the Algerian border, where protests frequently erupt over unemployment since the closure of the coal mines there in 2001.

Morocco has a huge deficit in energy production as annual consumption is growing by around 8% and it has to spend heavily to subsidise power due to high production costs.

Earlier this month, Safi Energy Company, a joint venture between Morocco‘s Nareva, France‘s GDF SUEZ and Japan‘s Mitsui, secured $2.6-billion in financing to build another 1 386 MW coal-fired power plant in southern Morocco.

Morocco wants to meet domestic power demand using thermal power, clearing the way to export renewable energy to the European Union.

By: Reuters

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