Morocco’s state utility Office National de l’Electricite (ONE) has named the UK’s International Power and Nareva, a subsidiary of the local ONA Group, first-ranked preferred bidders to build its planned Safi independent power project (IPP).

Bids were opened on 29 October. International Power and Nareva offered a total levelised tariff of MD1,053 a MWh ($130 a MWh), about 5 per cent lower than a competing bid from France’s EDF and China Datang.

Bids were then analysed and adjusted upwards. Both bid prices were increased, but EDF’s was increased to more than that submitted by the UK/Moroccan partnership. At final read-out, EDF’s bid stood at MD1,203 a MWh and International Power/Nareva’s bid was MD1,069 a MWh resulting in a bid difference of 12 per cent.

This was the second time that bids were submitted. The first bidding round happened earlier in 2010, before additional information about the site was obtained in June and ONE requested revised bids.

The winning developer will install two 660MW turbines for the coal-fired project on a build-own-operate (BOO) basis under a 30-year contract. Commissioning is scheduled for 2015.

ONA originally planned to take responsibility for the supply of coal feedstock and the construction of coal-handling facilities at Safi port as part of the project. In March 2009, ONA shifted this responsibility on to the developer.

The UK’s HSBC is financial adviser on the project, while US firm Chadbourne & Parke is legal adviser. The US’ Sargent & Lundy is technical adviser for the scheme.