Environmental Engineering Reference
In-Depth Information
BOT/concession agreement. Besides the PPP, a PPA should be concluded. The
price for the produced energy is likely to be higher than the average Moroccan
energy costs, so this new industry needs help at the beginning of its life. Further-
more, subsidies might be another way of helping an SPV to start up. All these
possible tools need to be in accordance with the law. The concession period is
closely connected to the charged price. Although the figures are not complete, the
concession period should be at least 30 years. Within this time, the SPV should be
able generate enough money to pay off all its debts and generate a profit. Due to the
small amount of information available, this is just a prediction, especially given that
there is a lack of detailed information on the intended energy supply for the MENA
region.
The Moroccan economy and currency are healthy at the moment, which makes it
unsurprising that Dii chose Morocco as initial potential partner. There is a great
chance that any investor would have chosen Morocco too. Although Morocco is a
kingdom, the political system is mostly free. Stability is an issue that requires
further observation. The continuing revolutions and even civil wars within the
MENA area might be the deciding factor when it comes to the actual implementa-
tion of the Desertec Concept. The lack of a Moroccan PPP guideline is a drawback,
but, as Moroccan authors have pointed out, there is an awareness of important PPP
regulations. Due to the close relations with the French legal system, French
regulations might help to solve problems or deliver ideas.
Corruption is still a major problem in Morocco. Combined with the large-scale
project and the great amount of money connected with it, it is important to prevent
any form of corruption. Suspicion of corruption can lead to a decline in public
acceptance. Indeed, some North African authors have already mentioned the
tensions that currently exist. To overcome Moroccan or African reservations, the
foundation of a “Moroccan” SPV is another step to demonstrate an investor
'
s desire
for cooperation.
Overall, there are some risks surrounding the PPP, but they are not extremely
high or different from the risks faced by other PPP projects. The abovementioned
risks, mistakes, concerns, suggested solutions and positive examples should func-
tion as a checklist or catalog for the implementation of the Desertec Concept. There
are no unified rules or requirements for PPPs. It is essential to take all positive PPPs
into account, especially in the case of African PPPs. All in all, the Desertec Concept
has the potential to be extremely successful.
References
Ahadzi M, Bowles G (2004) Public-private partnerships and contract negotiations: an empirical
study. Constr Manag Econ 22:967-978
Allen G (2001) The private finance initiative (PFI). Available via research paper 01/117, House of
Commons Library.
http://www.parliament.uk/documents/commons/lib/research/rp2001/rp01-
