Morocco has announced a new solar programme with the first phase totalling 25 megawatts, but the small size could deter some large companies from investing.
“The problem is that in terms of capacity, it’s only of interest for some bidders,” said Boris Martor, the head of the Africa division at Eversheds. The UK law firm advises its clients on renewable energy projects throughout the region.
Mr Martor noted that feasibility-study, development and negotiation costs were the same regardless of scale. The first phase of the three-phase Tafilalet solar photovoltaic project will total 25MW, a small size compared to other solar projects in Morocco totalling more than 100MW each. “[Developers] have to find financing for a project that might be smaller, but in terms of development, would cost the same as a larger project,” he said.
The World Bank and the International Bank for Reconstruction and Development will provide financing, but Mr Martor said that at this stage it was still unclear if the organisations would finance the first phase in its entirety, expected to total US$150 million.
The Saudi Arabian solar powerhouse Acwa Power is known for going after large projects. Acwa is already involved in Morocco’s solar sector for three phases of the Noor concentrated solar power (CSP) project totalling 510MW with another 160MW for the Ouarzazate CSP plan. Still, Acwa is one larger player that might not be discouraged by the smaller size of the new project.
Paddy Padmanathan, Acwa’s chief executive, said that the company was very confident in Morocco as an investment destination. “I’m not convinced larger companies will stay away because Morocco is proving itself as a reliable renewable energy market that is intent on building serious volume of renewable capacity,” he said. “All serious players who have an appetite for this part of the world and sector will surely want to participate.”
Abu Dhabi-based Masdar has repeatedly attempted to gain a share of the solar pie in the North African country, but to no avail. The company’s chief operating officer, Mohamed Al Ramahi, said that while he would not confirm if Masdar was looking into this particular project, the company was always interested in Morocco. “The kingdom is a country we are always interested in, and we’re always looking for opportunities,” he said.
When asked if Masdar would do anything different for future tenders than in the past, Mr Al Ramahi said that as always the company would be competitive. “We could be successful next time – it’s a competition.”
The national utility, Moroccan National Office for Electricity and Water, will be accepting the bids for the project. Eversheds said the utility had not made any further announcements on the regional locations of the following two phases, but the programme’s second phase would have eight photovalic plants, and phase three was likely to have two to four plants.
The minimum total combined power for these plants would be 300MW.
Mr Martor said it would be important for any interested party to find local partners. “There are some Moroccan groups that are diversifying into the energy sector, and it’s important for any international bidder to partner [with local companies],” he said.
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Company Profile
Company name: Cargoz
Date started: January 2022
Founders: Premlal Pullisserry and Lijo Antony
Based: Dubai
Number of staff: 30
Investment stage: Seed
Founders: Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Albabtain.
Based: Riyadh
Offices: UAE, Vietnam and Germany
Founded: September, 2020
Number of employees: 70
Sector: FinTech, online payment solutions
Funding to date: $116m in two funding rounds
Investors: Checkout.com, Impact46, Vision Ventures, Wealth Well, Seedra, Khwarizmi, Hala Ventures, Nama Ventures and family offices
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
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25 visual effects (VFX) studios
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10 Concept artists, 25 3D designers
New sound technology, named 4D SRL
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Favourite place in UAE: Al Rams pearling village
What one book should everyone read: Any book written before electricity was invented. When a writer willingly worked under candlelight, you know he/she had a real passion for their craft
Your favourite type of pearl: All of them. No pearl looks the same and each carries its own unique characteristics, like humans
Best time to swim in the sea: When there is enough light to see beneath the surface
Stan Lee
Director: David Gelb
Rating: 3/5
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Engine: 2-litre 4-cylinder mild hybrid
Transmission: 7-speed S tronic
Power: 265hp / 195kW
Torque: 370Nm
Price: from Dh260,000
On sale: now
COMPANY PROFILE
Company name: Revibe
Started: 2022
Founders: Hamza Iraqui and Abdessamad Ben Zakour
Based: UAE
Industry: Refurbished electronics
Funds raised so far: $10m
Investors: Flat6Labs, Resonance and various others
How to tell if your child is being bullied at school
Sudden change in behaviour or displays higher levels of stress or anxiety
Shows signs of depression or isolation
Ability to sleep well diminishes
Academic performance begins to deteriorate
Changes in eating habits
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Company Profile
Name: Direct Debit System
Started: Sept 2017
Based: UAE with a subsidiary in the UK
Industry: FinTech
Funding: Undisclosed
Investors: Elaine Jones
Number of employees: 8
Key changes
Commission caps
For life insurance products with a savings component, Peter Hodgins of Clyde & Co said different caps apply to the saving and protection elements:
• For the saving component, a cap of 4.5 per cent of the annualised premium per year (which may not exceed 90 per cent of the annualised premium over the policy term).
• On the protection component, there is a cap of 10 per cent of the annualised premium per year (which may not exceed 160 per cent of the annualised premium over the policy term).
• Indemnity commission, the amount of commission that can be advanced to a product salesperson, can be 50 per cent of the annualised premium for the first year or 50 per cent of the total commissions on the policy calculated.
• The remaining commission after deduction of the indemnity commission is paid equally over the premium payment term.
• For pure protection products, which only offer a life insurance component, the maximum commission will be 10 per cent of the annualised premium multiplied by the length of the policy in years.
Disclosure
Customers must now be provided with a full illustration of the product they are buying to ensure they understand the potential returns on savings products as well as the effects of any charges. There is also a “free-look” period of 30 days, where insurers must provide a full refund if the buyer wishes to cancel the policy.
“The illustration should provide for at least two scenarios to illustrate the performance of the product,” said Mr Hodgins. “All illustrations are required to be signed by the customer.”
Another illustration must outline surrender charges to ensure they understand the costs of exiting a fixed-term product early.
Illustrations must also be kept updatedand insurers must provide information on the top five investment funds available annually, including at least five years' performance data.
“This may be segregated based on the risk appetite of the customer (in which case, the top five funds for each segment must be provided),” said Mr Hodgins.
Product providers must also disclose the ratio of protection benefit to savings benefits. If a protection benefit ratio is less than 10 per cent "the product must carry a warning stating that it has limited or no protection benefit" Mr Hodgins added.
ROUTE TO TITLE
Round 1: Beat Leolia Jeanjean 6-1, 6-2
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Company Profile
Name: HyveGeo
Started: 2023
Founders: Abdulaziz bin Redha, Dr Samsurin Welch, Eva Morales and Dr Harjit Singh
Based: Cambridge and Dubai
Number of employees: 8
Industry: Sustainability & Environment
Funding: $200,000 plus undisclosed grant
Investors: Venture capital and government
Company profile
Company name: Fasset
Started: 2019
Founders: Mohammad Raafi Hossain, Daniel Ahmed
Based: Dubai
Sector: FinTech
Initial investment: $2.45 million
Current number of staff: 86
Investment stage: Pre-series B
Investors: Investcorp, Liberty City Ventures, Fatima Gobi Ventures, Primal Capital, Wealthwell Ventures, FHS Capital, VN2 Capital, local family offices
MATCH INFO
Uefa Champions League, last-16 second leg
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