Genesis Morocco: ORASCOM CI, Out in the Cold, or Hanging out to Dry, Depending.

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Genesis Morocco

Project Genesis is a strategic sustainable development framework for Morocco to translate from being a net importer of energy and a country facing water shortage issues, into the number one producer both of clean renewable energy and water in the region.

Saturday, March 24, 2012    <<Home

ORASCOM CI, Out in the Cold, or Hanging out to Dry, Depending.

This is a follow up on the recent news covered by my co blogger Toshiro Baum.

On December 2011 I covered the final stages of the selection process for the Ouarzazate solar plant, and identified ORASCOM CI as the sure bet winner after identifying it as major player in one of Morocco's most important sector, phosphates, and speculating that its business ties, namely with OCP, one of Morocco's leading industrial concerns, as well as its repeat business capabilities in other sector through its parent group ORASCOM would be a winning hand to land the Ouarzazate deal.

Their exclusion comes as a major twist of events, as Toshiro points out many reasons can explain this. It does seems to me however that the filling for insolency by Solar Millenium AG would be the major reason

The fact of the matter in this business of international tenders, is that anyone applying for a deal of such magnitude has to show a strong balance sheet and rock solid financial credibility, standard that don't apply to a group where one of the partners is insolvent.

Furthermore, Morocco I believe is very watchful of this solar plants tender process, the government wants it done right because international markets and investors are watching, and so there credibility capital on the line. Add to that that in such deals Morocco is usually advised by major international business advisers and the decision by the government seems well justified.

Their not pointing out to the reason of the exclusion is surely because firstly the tender is an internal process, meaning they do not have to justify anything to anyone, and secondly so as not to embarrass even more the ORASCOM group which is after all still a business player here in Morocco in the phosphates sector.

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