African Development Bank
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AFRICAN DEVELOPMENT BANK Piblic Disclosure Authorized PROJECT : NOOR MIDELT SOLAR COMPLEX PROJECT – PHASE I (NOORM I AND NOORM II SOLAR PLANTS) COUNTRY : KINGDOM OF MOROCCO PROJECT APPRAISAL REPORT Piblic Disclosure Authorized RDGN/PERN November 2017 Translated Document TABLE OF CONTENTS CURRENCY EQUIVALENTS…………………………………………………………..… i ABBREVIATION AND ACRONYMS……………………………………………….......… ii 1. STRATEGIC THRUST AND RATIONALE ................................................................................. 1 1.1. Project Linkages with Country Strategy and Objectives ............................................................. 1 1.2. Rationale for the Bank’s Involvement ......................................................................................... 2 1.3. Aid Coordination ......................................................................................................................... 3 2. PROJECT DESCRIPTION ............................................................................................................. 3 2.1 Project Description and Components ......................................................................................... 3 2.2 Technical Solution Adopted and Alternatives Explored .............................................................. 4 2.3 Project Type ................................................................................................................................ 5 2.4 Project Cost and Financing Arrangements ................................................................................. 5 2.5 Project Area and Beneficiaries ................................................................................................... 6 2.6 Participatory Approach for Project Identification, Design and Implementation ........................ 7 2.7 Bank Group Experience and Lessons Reflected in Project Design ............................................. 8 2.8 Key Performance Indicators ....................................................................................................... 9 3. PROJECT FEASIBILITY ............................................................................................................... 9 3.1 Economic and Financial Performance ........................................................................................ 9 3.2 Environmental and Social Impact ............................................................................................. 10 4. PROJECT IMPLEMENTATION ................................................................................................. 13 4.1 Implementation Arrangements .................................................................................................. 13 4.2 Monitoring ................................................................................................................................. 17 4.3 Governance ............................................................................................................................... 17 4.4 Sustainability ............................................................................................................................. 18 4.5 Risk Management ...................................................................................................................... 18 4.6 Knowledge Building .................................................................................................................. 19 5. LEGAL FRAMEWORK ............................................................................................................... 19 5.1 Legal Instrument........................................................................................................................ 19 5.2 Conditions Associated with the Bank’s Intervention ................................................................. 19 5.3 Compliance with Bank Policies ................................................................................................. 21 6. RECOMMENDATIONS .............................................................................................................. 21 Appendix I: Comparative Socioeconomic Indicators of Morocco ........................................................... I Appendix II: Table of Bank Portfolio in Morocco (July 2017) ............................................................... II Appendix III: Major On-going Related Projects in Morocco Financed by the Bank and Other Development Partners .............................................................................................................................V Appendix IV: Map of the Project Area ................................................................................................ VII Appendix V: Note on the Moroccan Solar Programme and its Deployment ......................................VIII CURRENCY EQUIVALENTS June 2017 UA 1 = 13.4564 MAD UA 1 = 1.23369 EUR UA 1 = 1.38432 USD EUR 1 = 1.1221 USD EUR 1 = 10.9074 MAD USD 1 = 9.7205 MAD FISCAL YEAR 1 January 31 December WEIGHTS AND MEASURES 1 metre (m) = 3.280 feet 1 kilometre (km) = 1 000 m 1 acre (a) = 100 m² 1 square kilometre (km²) = 1 000 000 m² 1 hectare (ha) = 10 000 m² 1 kilogramme (kg) = 2.204 pounds 1 metric tonne = 1 000 kg 1 metric tonne = 2 204 pounds V = Volt A = Ampere VA = Volt-ampere W = Watt Wh = Watt hour 1 kV = Kilovolts = 1 000 V 1 kVA = Kilovolt-ampere = 1 000 VA 1 kW = Kilowatt = 1 000 W 1 MW = Megawatt = 1 000 kW = 1 000 000 W 1 GW = Gigawatt = 1 000 MW = 1 000 000 kW 1 kWh = Kilowatt hour = 1 000 Wh 1 MWh = Megawatt hour = 1 000 kWh = 1 000 000 Wh 1 GWh = Gigawatt hour = 1 000 MWh = 1 000 000 kWh 1 toe = Tonne of oil equivalent (toe) = 41 868 joules = 11 630 kWh 1 Mtoe = Million tonnes of oil equivalent = 1 000 000 toe i ABBREVIATION AND ACRONYMS AFD French Development Agency AfDB African Development Bank AFESD Arab Fund for Economic and Social Development ANAPEC National Agency for the Promotion of Employment and Skills CBDs Competitive Bidding Documents COMA AfDB Country Office in Morocco CSP Concentrated solar power CSP Country Strategy Paper CTF Clean Technology Fund DEPP Directorate of Public and Private Institutions EBRD European Bank for Reconstruction and Development EIA Environmental Impact Assessment EIB European Investment Bank ENPV Economic Net Present Value ERR Economic Rate of Return ESIA Environmental and Social Impact Assessment ESMP Environmental and Social Management Plan EU European Union FDE Electrification Development Fund FIRR Financial Internal Rate of Return GEF Global Environment Facility HCEFLCD High Commission for Water, Forests and Desertification Control HV High Voltage IGF General Inspectorate of Finance JICA Japan International Cooperation Agency KFW Kreditanstalt für Wiederaufbau (German Development Bank” LTA Lender Technical Advisor LV Low voltage MAD Moroccan Dirham MASEN Moroccan Agency for Sustainable Energy MEF Ministry of Economy and Finance (Morocco) MEMDD Ministry of Energy, Mines and Sustainable Development (Morocco) MENA Middle East and North Africa MIC-TAF Middle Income Countries’ Technical Assistance Fund (AfDB) MW Megawatt NGO Non-Governmental Organisation ii NIF Neighbourhood Investment Facility (European Union) NPV Net Present Value OFID OPEC Fund for International Development OFPPT Office of Vocational Training and Employment Promotion ONEE National Electricity and Water Authority (Morocco) PERG Global Rural Electrification Programme PERN Renewable Energy and Energy Efficiency Department (AfDB) PPP Public-Private Partnership PV Photovoltaic (solar) SEP Stakeholder Engagement Plan SIE Energy Investment Company SME Small and Medium-sized Enterprise SPC Solar Project Company TFP Technical and Financial Partners TOE Tonne of Oil Equivalent UA Unit of Account (AfDB) USD United States Dollar VHV Very High Voltage WB World Bank iii PROJECT INFORMATION SHEET BORROWER: Moroccan Agency for Sustainable Energy (MASEN) EXECUTING AGENCY: Moroccan Agency for Sustainable Energy (MASEN) No. 50, Lot Massoudi Zénith Rabat, Angle rue Ait Malek Avenue Bir Kacem, Rocade Sud “Rabat-Casablanca” Rabat (Morocco), Fax: (212) 537 57 14 75 http://www.masen.ma/en/; http://www.masen.ma/fr/ Financing Plan (estimated) Sources Amounts (EUR million) Amounts (UA million) Instrument ADB (USD 240 million) 214 173 Loan CTF -ADB (USD 25 million) 22 18 Loan CTF-World Bank (USD 25 million) 22 18 Loan World Bank 178 144 Loan AFD 150 122 Loan EIB 342 277 Loan KfW 710 576 Loan NIF/EU 80 65 Grant (maximum amount) Private partners 307 249 Own funds MASEN 23 18 Own funds Total 2 048 1 660 Key AfDB Financial Information ADB Loan CTF-ADB Loan Loan Type Fully Flexible Loan Concessional Loan Loan Currency United States Dollars (USD) United States Dollars (USD) Maturity To be determined (up to 25 years 40 years maximum) Including the grace To be determined (up to 8 years 10 years period maximum) Interest Rate Base rate + Funding margin +Lending N/A spread + Maturity premium This interest rate must be above or equal to zero. Base Rate Floating (6-month EURIBOR, reset on N/A 1 February and 1 August or any other acceptable rate), with a free fixing option Loan margin 0.80% (80 basis points (bp)) N/A Financing cost margin Financing cost margin of the Bank in N/A relation to the 6-month EURIBOR This margin is revised on 1 January and 1 July of each year and applied on 1 February and 1 August with the base rate Maturity premium To be determined: 0% if weighted average maturity <= 12.75 years iv 0.10% if 12.75 < weighted average maturity <= 15 0.20% if weighted average maturity>