Announcement of Twenty-Five Million US Dollars Loan for a Power Project in Morocco on September 13, 1973

• 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE ;3-6360 Bank Press Release No. 73/66 Subject: $25. O million loan for September 13, 1973 a power project in :Morocco. The World Bank has approved a loan of $25.o million to the Office Nationale de l'Electricite - Morocco (ONE), the Goverrunent-owned enter- prise responsible for generating electricity for public consumption and for distributing energy outside large cities. The Bank loan is part of the first stage of ONE's construction program for the period 1973-1977, which is estimated to cost DH 975 million (US $232 million) and includes work on some hydro plant, thermal plant, constructiot1 and expansion of transmission lines and. upgrading • or extension of 8 existin~ ,substations • The Office National~ de 1 1Electricite expects to conunission two gas tur- bines at Agadir and Tangier in 1974-197.5, and plans the completion of the trans- mission facilities by the early 1976. The $25.o :million Bank loan would finance the full estimated foreign exchange cost of this project, the total cost of which would be DH 166 million (US $39.4 million). It is the first Bank loan for power in Morocco. The loan to ONE ·1s for 20 years including 4 years of grace. The project,will help in ensuring reliability of supply and to provide peaking capacity in Morocco's intercormected system. The ecological impact of the gas turbines is negligilile' because they will both be situated on the coast outside the big cities and convection air currents wiJ..l make a concentration of fums unlikely. The proposed transmission lines also avoid population centers.  • TECHNICAL DATA PROJECT: Power project COUNTRY: Kingdom of Morocco TOTAL COST: i39.4 million BANK FINANCING: ~25,.0 million OTHER FINANCING: $14.4 million IMPLEMENTING ORGANIZATION: Office Nationale de l'Electricite (ONE) PROJECT DESCRIPTION: - Ins tall a tion of two 20 MW gas turbine units, at Agadir and Tangier (1974-1975) - Construction of two 225 kV line between Jerada (near the Algerian boarder) and Kenitra on the West coast, including tie • lines. Overall length estimated at 563 km O 975) - upgJ1.i:i.ding to 225 kV the 3!.}0 km long existing 150 kV line between Casablanca and Tangier - Construction of a new 225 kV substation at Kenitra extension of existing 225 kV substation at Oujda, Fes, Meknes, Rabat and Casablanca, and the upgrading to 225 kV of the existing 150 kV substation at Tangier (1976) PROCUREMENT: Procun~1~ ent of goods and services is being 1 made through inter,Ilational competitive bidding in ac}~ordarice with the Bank \1 "Guidelines fi,t>r Procurement". Contracts for major equipinent 1:fave been awarded following adverti~ing and procurement. • CONSULTANTS, TECHNICAL ASSISTANCE: Electrici te de -,France to study future expansion requirements. ESTIMATED COMPLETION DATE: 1977 -o-