Safi Power Plant and Taza Wind Farm Among Top 40 Investment Projects

 

 

The Safi power plant and the Taza wind farm are among the top 40 investment projects approved by the Moroccan government for 2014.
In Morocco, the inter-ministerial investment commission has just approved in Rabat 40 private foreign and Moroccan investment projects representing 3.7 billion euros, nearly three-quarters of which concern energy. The Safi power plant and the Taza wind farm are among the approved projects, giving them the right to subsidies.

Future giant Safi coal-fired power plant led by Nareva and Gdf-Suez, Taza wind farm launched by Edf.... The year 2014 is starting well for investments in Morocco and project developers. The inter-ministerial investment commission, meeting on December 30 in Rabat under the chairmanship of the head of government Abdelilah Benkirane, approved 40 investment agreements and amendment projects. A cement plant project by Asment, a subsidiary of the Brazilian conglomerate Votorantim, is also part of the package, according to information from "L'Usine Nouvelle" (see box at the end of the article).
This procedure is part of Morocco's public support for private investment. Companies whose investment program can conclude an agreement with the State granting them various specific advantages or subsidies such as covering part of the investments, up to 10% for some, in particular via the Hassan II fund.

To do this, projects must meet one of the following conditions: be of a minimum amount of 150 million dirhams (12 million euros), create at least 250 jobs or justify a technology transfer.
The 40 projects validated at the end of December represent a total envelope of 42 billion dirhams (3.7 billion euros). They should be accompanied by the creation of 2,000 direct jobs and 14,000 indirect jobs.
Three-quarters of the investments in value, or 31 billion dirhams (2.7 billion euros), come from the energy sector.

Logically, the investment needed to build the Safi power plant alone is estimated at 1.9 billion euros.
At the sectoral level, in addition to the 31 billion dirhams related to energy, the infrastructure and logistics sector represents nearly a tenth of the investments approved by the commission. Ahead of telecommunications (7.3%), industry (4.8%) and tourism (3.8%).

INCREASE IN NET FOREIGN DIRECT INVESTMENT FLOWS
Of the total amount of investments, Moroccan-foreign joint ventures represent 63%, Moroccan investments 30.9% and investments with strictly foreign capital 5%.
As a reminder, net foreign direct investment (FDI) flows in Morocco are doing rather well. They amounted to 25.38 billion dirhams (2.2 million euros) in the first eleven months of 2013, up 18%, according to the Office des Changes.

At the regional level, the majority of investments (57%) validated by the inter-ministerial commission on December 30 will be poured into the Doukkala-Abda region, an important industrial hub located southwest of Casablanca. Located on the Atlantic coast, Safi, its capital, attracts significant investments from OCP.
According to Mohamed Boussaid, the Minister of Economy and Finance, these investments should generate more than 2,000 direct jobs and 14,000 indirect jobs.

The creation of direct jobs planned by the projects approved by the commission is concentrated in the regions of Tangier-Tetouan in the northwest with nearly 580 direct jobs (29%), the Oriental and its capital Oujda with 438 jobs (21.9%) and Greater Casablanca with 400 jobs (20%).

At this inter-ministerial meeting on December 30, Abdelilah Benkirane, according to the MAP news agency, also called on the administrative departments concerned to accelerate the pace of signing the agreements approved by the commission, within a maximum period of one month.

A new investment charter in Morocco, promised for several years, is in the final stages of drafting, according to the government, and will aim to simplify certain procedures. This charter should also provide for a special regime with "à la carte" negotiation for very large projects like the one in Safi. Which, in fact, is sometimes already the case.


Among the 40 projects approved on December 30, L'Usine Nouvelle is able to reveal the following from a reliable source:
Safi energy company (Safiec): construction of a coal-fired thermal power plant in the province of Safi. Project led by a joint venture between Nareva Holding with 35%, French GDF Suez (35%) and Japanese Mitsui (30%) for an investment of 22 billion dirhams. The project will create 150 direct jobs.
Taza wind farm company: project led by a joint venture between EDF Energies Nouvelles (60%) and Japanese Mitsui (40%). The investment amount is 2.41 billion dirhams with the creation of 26 direct and permanent jobs.
Votorantim Group: this Brazilian giant plans for its subsidiary Asment, acquired via the Portuguese group Cimpor, the construction of a cement plant and operation of a quarry in the Meknes region for an investment of 1.45 billion dirhams, creating 100 direct jobs.
5-star hotel with 300 keys in the Tangier region, a beach club, an 18-hole golf course and a clubhouse. The planned investment is 1.97 billion dirhams with the creation of 290 direct jobs.


Nasser Djama with Pierre-Olivier Rouaud


Usinenouvelle.com

Published January 3, 2014.

Posted online January 9, 2014.