Programme: Power Transmission Network Development and Rural
Electrification Programme (PDRTE-ER)
Term Paper submitted by Adan Bulale as part of the requirements of Project
management class in the fall semester 2020.
Submission Date: 8th Feb 2021
ID: 51220638
Professor: TSUKADA Shunso
1. Overview of the Project
The Power Transmission Network Development and Rural Electrification Programme
(PDRTE-ER) is an investment project that strives to enhance the safety, capacity, and security of
the national power energy in Morocco. The purpose also includes to reduce the effects of power
generation on the climate change and reach maximum use of renewable energy including wind
and solar. The project will be extended to the rural areas by electrifying 720 villages with 16,250
households in 248 municipalities within 49 states. The total cost of the Programme is estimated at
EUR 352.33 million. It will be carried out over five (5) years from 2020 to 2024.
Power Transmission Network Development and Rural Electrification Programme in Morocco
was approved by African Development Bank appraisal team in December 2019.
2. Key players
The granting authority or the initiator of the project is National Electricity and Water
Authority (ONEE) on the other hand, the African Development Bank AFDB is the project
proponent. in addition, the same National Electricity and Water Authority– Electricity
Branch (ONEE-BE) is also the implementor of the project.
3. Financing arrangement
The project is financed by African Development Bank with the loan of $199.61 million
while National Electricity and Water Authority ONEE adds $88.80 million into the project
as Equity capital which makes the total fund of the project. $288.41 million.
This AFDB loan type is fully flexible loan with the maturity of 25 years and the grace
period of 8 years. the interest rate is calculated as the sum of base rate, funding margin,
lending spread and maturity premium. In other words, the interest rate must be above or
equal to zero.
4. Due diligence
5. Financial analysis of the Project
6. Evaluation of the project