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Monday, March 9, 2009
Morocco to invest $10b in energy
RABAT (Trade Arabia) -- Morocco has announced plans to invest Dh90 billion ($10.29 billion) in projects across the energy spectrum.
It will build more power plants, expand oil storage capacity and step up exploration for hydrocarbons for the six-year period to 2015, said Amina Benkhadra, Morocco’s energy minister.
“This plan links the government and the private sector to implement a strategy aimed at securing energy supply and diversifying energy sources at the right costs,” he told a gathering of top government officials, bankers and executives.
Business leaders were worried Morocco might fail to produce enough power to meet the needs of an economy growing at an average 5.3 per cent in the past five years.
Morocco’s gross domestic product is expected to expand by 6.7 per cent this year, despite global economy downturn, from 5.8 per cent last year, according to government forecasts.
The government is also under pressure to cap the bill for energy, 97 per cent of which is imported. The costs strain its trade balance and test its capacity to avoid a wide budget deficit.
The value of energy imports soared to Dh71 billion last year from 53 billion in 2007 and 21 billion in 2003, according to official figures which also showed the government allocated 23 billion to subsidise fuel.
“This strategy guarantees that Morocco’s economy and population needs in energy are met all the time and throughout the county at the right prices,” Benkhadra said.
Electricity consumption is expected to increase 7-8.5 per cent per year in the next 10 years from 5 per cent average in the past five years, officials said.
Under this strategy, Morocco would double power generation capacity from its current 5,292 megawatt, at estimated costs of Dh61.4 billion.
The government seeks to expand electricity generation from wind six times from 6,000 MW currently to bring the share of total generation power from winds to 12 percent by 2015.
Its strategy also calls for expanding oil and gas storage capacity with an investment of around Dh3.0 billion.
The government seeks to spend more in exploration for gas and oil after a recent discovery rekinked hopes among energy officials of a possible big find in the future.
Last month, AIM-listed oil and gas exploration company Circle Oil has said it had made its third successful gas discovery in Morocco.
Morocco also plans to invest more than Dh15 billion in modernizing oil and gas distribution networks and in energy efficiency.
The scheme includes soft loans for transport firms and taxi owners to renew their fleets to trim oil consumption and reduce pollution in big cities, officials said.
It may be noted that Morocco is the only north African state without oil of its own.