Mitsui enters into Finance Agreements for the Safi IPP Project in Morocco

Sep. 19, 2014

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Mitsui & Co., Ltd. ("Mitsui", Head Office: Tokyo, President and CEO: Masami Iijima), acting through Safi Energy Company. a project company jointly established with GDF SUEZ S.A. ("GDFS") and Nareva Holding S.A. ("Nareva"), has signed project finance agreements as of September 18, 2014 for the Safi coal-fired power project. The Japan Bank for International Cooperation, several commercial banks (with loan insurance to be partially provided by Nippon Export and Investment Insurance), and the Islamic Development Bank will act as lenders.

The project, which is expected to cost US$2.6 billion, consists in the construction of a 1,386MW ultra-supercritical coal-fired power plant near the city of Safi in Southwest Morocco and the generation of electricity for 30 years following completion of the plant currently expected to be in 2018. A power purchase agreement with the Moroccan state-owned utility, l'Office National de l'Électricité et de l'Eau Potable has already concluded. The state of the art power plant will be the first in Africa to use ultra-supercritical technology, and will reduce its environmental footprint by achieving approximately 10% greater generating efficiency compared to conventional subcritical plants. Upon completion, the power plant will contribute to the economic development of Morocco, currently a net importer of electricity, by supplying around 20% of its total power demand.

Mitsui has operated in Morocco for over 30 years, and has been involved in major projects such a Sulfuric Acid plant for the national phosphates agency, l'Office Chérifien des Phosphates, the supply of Hitachi locomotives to the national railway operator, l'Office National des Chemins de Fer, as well as the Jorf Lasfar 2x350 MW coal-fired power plant. With the addition of the Safi project, Mitsui's net generating capacity will become approximately 9GW, including projects under construction. Mitsui continues to seek improvement of its generation portfolio by diversifying elements such as the geography and the fuel-mix, and aims to further expand its generation activities in regions with high growth potential such as Africa.

Outline of Safi Project

Project Company Safi Energy Company S.A.
Ownership Mitsui: 30%(through a holding company)
GDFS: 35%(through a holding company)
Nareva: 35%(through a holding company)
Location Safi, Morocco
Generation Capacity 693MWx2 units
Asset Type Ultra supercritical coal-fired power plant
Project Costs Approximately US$ 2.6billion
Commercial Operation 1st unit and 2nd unit: 2018

Investment Structre

Investment Structre

GDFS Overview

Corporate Name GDF SUEZ S.A.
Headquarter Location Paris, France
Representative Gerard Mestrallet, Chairman & CEO
Main Business Electricity, natural gas, and energy and environmental services
Establishment July 2008

Nareva Overview

Corporate Name Nareva Holding S.A.
Headquarter Location Casablanca, Morocco
Representative Ahmed Nakkouch, Chairman & CEO
Main Business Infrastructure development
Establishment January 2005

This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently possessed by it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.


For inquiries on this matter, please contact

Mitsui & Co., Ltd.
Corporate Communications Division
Telephone: +81-80-5912-0321
Facsimile: +81-3-3285-9819
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