Market gets excited about Morocco

12 July 2016

North African country set to offer some of the most lucrative opportunities in the region’s energy sector in 2016

The appointment of technical consultants for Morocco’s $4.6bn gas-to-power scheme has raised the levels of excitement over one of the region’s most eagerly anticipated projects of the year.

While some of the most lucrative markets struggle to get moving with the next round of projects, with Saudi Arabia undertaking major economic reforms and Kuwait maintaining a slow pace, Morocco’s multi-billion dollar gas-to-power project is being courted by some of the largest firms active in the region’s contracting and project financing sectors.

With contractors eager to find out more information on the scope of the packages for the energy mega project, the award of the technical consultancy contract to France’s Sofregaz and Denmark’s Ramboll should begin to get the ball rolling. The next step will be selecting the financial adviser, with the client, Office National de l’Electricite et de l’Eau Potable (ONEE), having received proposals in the first quarter of the year. Once the financial consultant is in place, real progress with selecting and beginning the procurement process can be made.

ONEE followed the selection of the technical consultants with the invitation for bids for the liquid natural gas (LNG) advisory role. With the project set to be one of the most technically demanding Morocco’s power sector has undertaken, the decision to appoint various consultants is a wise one and will ensure that the project is on the best possible footing to succeed.

ONEE has also initiated plans for new hydro power facilities and an electrical interconnection with Portugal, further enhancing the kingdom’s position as one of the Middle East and North Africa’s most exciting utilities markets in 2016.

With the region’s projects sector still reeling from the drop in oil price, regional and international contractors, developers and lenders will hope that Rabat can deliver on its ambitious pipeline as swiftly as possible.

 

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