Banks detail Morocco power project finance

27 September 1996
FINANCE

The group of banks arranging finance for the Jorf Lasfar power project in Morocco say they are aiming to raise up to $1,445 million in loans for the scheme.

The main component of the financing is to be $824 million worth of 15-year loans to cover equipment and construction costs.

ABB Project & Trade Finance, the financial adviser for the deal, says it is hoping for a loan from the US' Overseas Private Investment Corporation and cover from export credit agencies from the US, Italy and Switzerland.

ABB is also negotiating for a $184 million loan from the World Bank. The sponsors want a contingent loan facility of $209 million to cover buying a licence to run the power station from the state electricity, and the rest of the financing is working capital of an as yet undecided amount. ABB says it hopes to have the finance package in place by the end of this year (see Morocco).

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