Signature of Financing Agreements related to the Front-End Engineering Design Study Project for Nigeria – Morocco Gas Pipeline
Rabat-Abuja-Jeddah 20 December 2021 The Islamic Development Bank, represented by Mr. Mansur Muhtar, the Vice President, the Moroccan Government, represented by the Minister of Economy and Finance, Mrs. Nadia Fettah, and ONHYM (Office National des Hydrocarbures et des Mines) represented by Mrs. Amina Benkhadra, General Director, signed at a virtual ceremony held on 20 December 2021 the financing agreements related to the Front-End Engineering Design (FEED) Study for the Nigeria-Morocco Gas Pipeline project. The ceremony was attended by SG of the Ministry of Energy Transition and Sustainable Development.
The addresses made by the representatives of the Government of Morocco, ONHYM, and IsDB highlighted the key and strategic role of the project as a step towards strengthening energy security in the region, contributing to economic and social development of the countries crossed and the regional economic integration, enhancing of world intra-trade and exports in the African continent, and creating a common energy space for connectivity of IsDB member countries.
It was recalled the recommendations made by His Majesty King Mohammed VI, through his address to the participants at the 44th annual meeting of the Islamic Development Bank in Marrakech on 5 April 2019, during which the pipeline project linking Nigeria and Morocco was presented as a model of south-south cooperation, eligible for financing from the IsDB Group since most of the interested countries are members of the Group.
The Front-End Engineering Design (FEED) study (The “Project”) is an important milestone for a strategic project: the Nigeria Morocco Gas Pipeline (NMGP) project sponsored by His Majesty King Mohammed VI and His Excellency President Muhammadu Buhari
The Project aims at preparing the required studies for the gas pipeline and help taking the Final Investment Decision (FID) by 2023 for the infrastructure project. The specific objectives of IsDB financed component of the project are to: (i) Perform the Environment and Social Impact Assessment (ESIA) in order to ensure the project compliance to all local and international environmental and social regulations and standards (ii) Develop the Land Acquisition Studies for agreeing with all countries to be crossed by the NMGP on the processes to obtain the right of ways for the pipeline to ensure smooth implementation of the works at a later stage.
As per the agreement between Morocco and Nigeria Governments, both countries will share equally the Project cost which is estimated at USD 90.1 million. The IsDB will support the Moroccan contribution and participate in the financing of the project up to an amount of USD 15.45 million under “Service Ijara” operation. For the Nigerian Contribution, the IsDB Bank has just approved financing of an amount of USD29.75 million which will bring the contribution of the Bank to 50% of the total cost of the FEED study of the Nigeria – Morocco Gas Pipeline.