Environmental Engineering Reference
In-Depth Information
also apply to the Desertec Concept. Although there are taxes which must be paid by
the investor so that it may run the project, these were not considered by former
ICSID tribunals.
3.7.5.3 Tests According the Literature
According to Schreuer
s idea, it is important that the design of the investment
includes development promotion. So far, the intention of an investor can be
understood in both ways, which makes it important to clarify in the concession
and state contract that the investment
'
s main purpose is the promotion of develop-
'
ment. The project
s setup should be adjusted to the needs of Morocco (and the
MENA region). If the setup already indicates that the main focus is Europe, a
project might not be considered to be an investment.
According to the double test, which performs an
'
economic test
and a
devel-
'
'
'
opment test
, the Desertec Concept is also an investment. Due to the concession fee,
Morocco is likely to increase its real per capita income and the application of solar
thermal energy leads to a reduction in conventional power plants. Consequently, a
cleaner environment and better health would be the result. This is under the
condition that the Desertec Concept produces energy for Morocco and not only
Europe. The last proposed test only demands that the project be in accordance with
the local laws. At this point of time, there can be no statement concerning the
consideration of contribution.
'
3.7.5.4 Art. 12(d) of the MIGA Convention
As mentioned above, the MIGA Convention is not directly applicable, but it offers
comprehensive guidance. According to Art. 12(d) of the MIGA Convention, con-
tribution to the economic development of the host state encompasses an objective
and a subjective element.
The Desertec Concept can fulfill several requirements of the objective element.
It has the potential to generate revenue for the host state. Due to the concession fee
and tax payments, the Desertec Project will produce revenue for the state of
Morocco. The utilization of sun power also helps to reduce vulnerability to external
economic changes and the diversification. Down to the present day, Morocco
s
economy is still heavily reliant on few products (e.g. fabric industry), and energy
creation mainly depends on oil. Due to the increasing oil price, which is frequently
subject to changes due to the international crisis, Morocco
'
s economy relies on
external factors. The same applies to the economy; because of cheap textile
products from Asia, the main export branch is under pressure. A new solar thermal
power plant and the possibility to export energy after the end of the concession
period would help to diversify products. Furthermore, the Desertec Concept would
also have an impact on employment and income. Studies predict that there could be
up to 120,000 jobs created during construction, and during manufacturing parts of
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