W Sahara conflict threatens financing for Moroccan solar parks - report

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(SeeNews) - Jan 6, 2014 - KfW Ipex-Bank GmbH, the World Bank, the European Investment Bank (EIB) and the European Union (EU) are not willing to finance Morocco’s ambitious solar projects in Western Sahara due to the political conflict there, Reuters said Thursday citing sources.

Yet, the news agency quoted other informants as saying that some alternative funds could come in the form of bilateral financing from Arab Gulf states.

A few years ago Morocco unveiled plans to install 4,000 MW of solar and wind power capacity by the end of the decade. Several parks are intended to be built in Western Sahara where the Algeria-backed Polisario Front is currently fighting for independence. One of the bank sources told Reuters that supporting any of the renewable energy projects in Western Sahara could be considered by some as support for Morocco’s position. The banks aim to remain neutral to the Morocco-Algeria conflict.

Reuters cited Morocco’s Mines and Energy Minister Abdelkader Amara as saying that initially three of the five solar projects were planned for Western Sahara but there is no final decision on the locations. The solar plans for Western Sahara are with a combined capacity of 600 MW, while there is also a 500-MW projects for Sabkhat Tah which borders Western Sahara, according to the report.

To date, only one Moroccan solar project is progressing -- a 160-MW concentrated solar power (CSP) plant that is being constructed by Saudi energy developer ACWA Power International near the city of Ouarzazate. Morocco's Solar Energy Agency (Masen) is expected to soon kick off tenders for the 200-MW Ouarzazate 2 parabolic trough CSP project and the 100-MW Ouarzazate 3 solar power tower facility.

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