Jorf Lasfar Energy Company

active

Jorf Lasfar Power Plant is 1360 MW coal fired power plant operated by Jorf Lasfar Energy Company (JLEC). The company was the first independent power producer and major private electricity project in Morocco. The Moroccan state electric utility, Office National de l'Electricitate (ONE), awarded the project through an international competitive bidding to JLEC in 1996. The project consisted in the operation of two existing units (each of them with an installed capacity of 330MW) and the construction and operation of two additional units (each of them with an installed capacity of 330MW). The concession structure was a 30-year lease contract by the project company. For the operation of the first two units, which were built by ONE, JLEC paid a lease payment as a lump sum. The last two units will be built and operated by the company. The project was designed so that the operation of units 1 and 2 would generate part of the cash required for the construction of units 3 and 4. During the contract period, the ownership of the four power stations remained with ONE as required by the Moroccan legal framework. The contract has been defined as a hybrid between a BOT scheme and a lease contract. The winning consortium, the Jorf Lasfar Energy Company (JLEC), was integrated by ABB (50%) and CMS Energy Corporation (50%). Through its CMS Morocco Operating Co., CMS Energy is responsible for the operation of the power stations, while ABB is responsible for the construction of units 3 and 4 under a turnkey contract. The total project cost was estimated in $1.5 billion. The project was financed by a limited recourse project finance facility which included US$ 200 million direct loan provided by OPIC and commercial bank financing backed by political risk guarantees provided by ERG, SACE, US Exim and the IBRD. In fiscal year 1998, the project company obtained a World Bank partial political risk guarantee for US$ 176 million to back government of Morocco obligations to the project and to mobilize private debt financing on a limited recourse basis. JLEC signed a 30-year power purchase agreement with ONE for the its total electricity output. JLEC signed coal supply agreements with various local suppliers. A Coal Terminal Agreement was with the Office d'Exploitation des Ports (ODEP) for use of the coal terminal at Jorf Lasfra. Project construction began September 1997. In August 2000 the 348MW Unit 3 achieved commercial operation and began supplying power to ONE. In February 2001, CMS announced that Unit 4 had been completed, raising the total power generating capacity to 1356 MW. In 2003, ABB attempted to sell its 50% stake in the plant, valued at around $500m, to JLEC Acquisition Co. and its parent company Stealth Energy Co.. There was a contract dispute, however, and the terms of the sale are currently being handled in a New York court. In February 2007, Abu Dhabi National Energy Company acquired 100% stake in the Jorf Lasfar coal-fired power station. None None