Second Phase Ouarzazate solar project requires over $2.6 billion

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The financial preparations for the construction of central Noor II and Noor III in the Phase 2 of Ouarzazate Solar Complex Project will be completed in December 2014.

Second Phase Ouarzazate solar project requires over $2.6 billion

Second Phase Ouarzazate solar project requires over $2.6 billion

On the same month the successful tenderer for thefor the design, financing, construction, operation and maintenance of the next phases of this CSP (concentrated solar thermal power) of Noor complex will be announced.

To complete the $ 2.6 billion funding Masen is expected to raise nearly $ 357 million. Noor II CSP is a project of a proposed Parabolic with around 200 MW of storage capacity. Noor III, on the other hand, is a CSP tower with a projected 100 to 150 MW of storage capacity.  Noor II and III are part of the Ouarzazate Solar Complex project with 500 MW to be implemented in phases and scheduled to open by late 2015. The construction of Noor I with 160 MW capacity is underway.

After approval of the $ 519 million fund by the World Bank and € 654 million declared by the German KfW bank, the African Development Bank (ADB) will support by helping to finance the second phase of the Ouarzazate solar project. The funds apparently will come from the bank’s own resources and those it mobilized from the Clean Technology Fund (CTF).

The overall funding provided by ADB was € 100 million and $ 119 million as a loan according to the officials of the African Development Bank but they further informed that negotiations are continuing with the Moroccan side (Moroccan Agency for Solar Energy – Masen – Department of Finance and Department of Energy). A meeting was held on October 9 for the approval of funding by the Board of Directors of ADB early December.

Furthermore, according to an official document from one of the main funders of projects Noor II and Noor III, overall funding would be more than $2.6 billion, including $ 2.3 billion negotiated with foreign donors. The European Investment Bank (EIB) would provide about 400 million euros. The French Development Agency would build between 50 and 55 million euros and about 122 million euros from the European Commission. German KfW bank will provide 654 million euros which 330 million euros have been approved for Noor II and 324 million euros for Noor III.

The completion of Noor II and Noor III havinga capacity of 300-350 MW is scheduled in the summer of 2015. The international selection procedure for developer was started in January 2013 and will be completed before the end of 2014 for a planned start of work in 2015.  As for Noor IV, with a capacity of approximately 50 MW, its feasibility will depend on the final capacity to be developed by Noor II and Noor III.

Mohamed Dekkak