Ouarzazate Solar Phase I

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The Ouarzazate Phase I solar project was the 160 MW first phase of a planned 500 MW solar thermal project to be located in Ouarzazate, Morocco. The project was in preparation as a PPP scheme between the Moroccan Ministry of Renewable Energy (MASEN), with 25% of the equity in the SPV and a to be selected private partner with a 75% equity stake in the project. The project was scheduled to sell power under a PPA with the state Utility ONE, with the Moroccan government providing payment guarantees to make up the difference between the market price and the cost of power produced. Total project cost for the first phase was estimated to be roughly USD 1.5 billion. Some financing from development Banks was agreed in 2011, with the IBRD (USD 300 million), AFDB (236 million) and the EIB (156 million) among the contributors. Germany's KfW and France's AFD both provided loans of USD 136 million. The financing was provided by the development banks to MASEN, which would in turn lend it directly to the project. Expected commissioning was scheduled for 2014. In September 2012, a consortium led by the Saudi Firm ACWA Power won the rights to develop the project. The price of power bid was USD 190/MWh, which has been estimated to give and equity IRR of 5%. Competitor consortia led by Grupo ACS and ENEL respectively bid prices of power of USD 240/MWh, leading to an estimated IRR of 10%. In October 2013, Munich Re (MUV2:XE) was appointed as supplier of insurance and risk management services for the 160MW Noor 1 plant. Together with GCube, Munich Re was expected to provide 50% of the risk coverage, including 28 months of construction and 12 months of commercial operation for the sponsor, ACWA Power. http://imagebank.worldbank.org/servlet/WDSContentServer/IW3P/IB/2011/11/18/000406484_20111118174227/Rendered/PDF/09725281.pdf http://operationsportal2.worldbank.org/wb/opsportal/ttw/about?projId=P122028 http://www.afdb.org/en/projects-and-operations/project-portfolio/project/p-ma-fac-015/