OREANDA-NEWS. L'Office National de l'Electricite et de l'Eau Potable (“ONEE”) and Safi Energy Company S.A. (“SAFIEC”) have entered into a 30-year Power Purchase Agreement for the Safi coal-fired power project. SAFIEC is owned by a consortium of GDF SUEZ S.A. (France), Nareva Holding (Morocco) and Mitsui & Co., Ltd. (Japan), which won the project after an international open tendering process.

The project includes the construction and operation of a 2?693 MW ultra-supercritical coal-fired power plant in the Safi region and the sale of electricity to ONEE for 30 years following completion of the plant.

This state of the art power plant, which is part of Morocco's national strategic plan to meet its growing electricity demand at the lowest possible cost whilst respecting the environment, is characterized by an optimization of environmental performance and higher efficiency compared to conventional plants. It will also enable significant CO2 reductions and lower fuel costs.

The plant, which will comply with the latest applicable environmental directives, will be equipped with a multi-stage electro-filter system to capture dust and fine particles, with a seawater flue-gas desulfurization system (FGD) to capture sulfur dioxide and with a flue-gas reheating system (GGH) to minimize its visual impact. It will be constructed by Daewoo Engineering & Construction Co. of South Korea. An EPC contract amounting to USD 1.8 billion was signed by SAFIEC and Daewoo on 9 August 2013.

From the start of construction and throughout its operation, the Safi power project will strongly contribute to the social and economic development of Morocco and in particular the Safi region, through job creation and the use of local SME services. The project will also stimulate the further development of existing and new port, railway and energy infrastructure, including the new Safi port, where a coal-shipping terminal to supply the plant is under construction. The construction works for Safi's new port were launched by His Majesty the King of Morocco in April 2013.

Financial close of the project is anticipated in the first quarter of 2014 and commercial operation of the plant is expected to start in 2017.