ABSTRACT OF THE P3A TWINNING PROJECT FICHE
1.1. Programme to support the reforms in the energy sector in Morocco
1.2. Twinning Number MA10/ENP-AP/EY21
1.3 Title: Reinforcement of the institutional capacities of the Kingdom of Moroccoand convergence of legal and regulatory frameworks for an optimized management of the downstream petroleum industry and the development of the natural gas market with EU's Acquis
1.4Sector: Energy EY
1.5. Beneficiary country: Kingdom of Morocco
2.1 General objective
- The projects aims at supporting the Moroccan efforts in implementing a performing energy policy, responding to its economic, social and environmental requirements, which could support the integration, in a long term, of Moroccan energy market with EU's one.
2.2 Specific objectives
- In order to optimize the management of the downstream petroleum industry, and accompany the development of the market and the infrastructures of the natural gas in coherence with the international and EUstandards, an appropriate legal and regulatory framework is set up and the institutional capacities of the main Moroccan actors (in particular the Ministry of Energy and Mines, water and Environment - MEMEE) are strengthened.
2.3 Contribution at the national Development/Association agreement/action Plan Level
Article 57 of the Association agreement between the Kingdom of Morocco and the EU defines the different axes in terms of energy cooperation.
Moreover, the Action Plan EU/Morocco stipulates on action points n° (65) Strengthening the role of Morocco in the regional energy supply security: Strengthening regional capacity for storage of energy products and n° (68) Development of natural gas use:
3.1 Context and justification
As a result of the 2020-2030 prospective assessment concerning the Moroccan energy strategy, a new energy strategy has been endorsed by all stakeholders at the occasion of the first national energy assizes, beginning 2009. This strategy aims for five goals: (i) energy supply security and availability; (ii) general access to energy at competitive prices; (iii) demand side management;(iv) taking over of advanced technologies and promotion of expertise; (v) environmental protection.
The Moroccan downstream oil sector and the natural gas require a limited but focused support of the European Union:
- In the downstream oil sector, which is essentially private sector activities, proposed actions relate to matters that are still barriers to the completion of the liberalization process (including prices), security of supply of petroleum products (security stocks) and putting to "international" standard for the security of energy facilities and product quality.
- In the field of natural gas, as regards supporting the MEMEE, institution that might/shall in the future regulate the gas market, and the other stakeholders, in order to finalize the regulatory framework, define the structure of the industry and clarify the contractual framework of the market.
3.2 Related activities
In the downstream oil sector, the partners are mainly oil companies: international companies, Moroccan groups in the distribution and shareholder of SAMIR. Outside the EC, only the World Bank is contributing to studies. We find the same partners and the private sector in the development of natural gas, along with the ONE.
3.3Results by relevant Activities
Results 1:An optimized system of energy security is put in place, including a strategy for security stocks management
Activity 1.1: Develop a strategy defining the storage and crisis management mechanisms
Activity 1.2:Develop and implement procedures relating to security stocks, emergency plans and supply programs by sector
Activity 1.3 Organize a study tour in Europe for 15 days for 4 managers
Activity 1.4 Organize two training seminars for managers from the Directorate of Fuel and Petrol (DCC)
Activity 1.5 Review the simulation and planning models for stocks management and propose functional improvements thereof
Results 2: The design of a process of liberalization of petroleum product prices and a gradual reduction in untargeted subsidies is engaged
Activity 2.1: Conduct a study on fiscal and structural impacts of the liberalization of petroleum products prices and the management of grants
Activity 2.2: Organize two seminars on the European experience of liberalization and transition formulas
Activity 2.3: Support the decision processfor the choice of transition mode, supporting the revision of legislation and regulation
Activity 2.4: Contribute to the set up of a process of liberalization of petroleum prices and progressive decreaseof grants, and accompany this transition process
Activity 2.5: Organize training courses in Europefor 15 days for 4 managers (2 managers of the DCC, 2 managers of the Directorate for Competition and Prices) on the technical control procedures and the organization of central services and in regions
Results 3:The capacities of the security of energy (oil and gas) control are reinforced
Activity 3.1: 1 Review and revise main laws and regulations governing the control of energy facilities, based on a gap analysis with EU'sAcquis
Activity 3.2: Organize training courses in Europefor 5 days for 10 people, on security and risk prevention in refineries, filling centres of Liquefied Petroleum Gas (LPG), the storage capacity of liquid petroleum products and power plants, for DCPR Managers and Technicians and the Regional and Provincial Divisions of the MEMEE
Activity 3.3: Organize two training seminars in Morocco on gas and steam pressure devices
Results 4: The capacities for quality control of petroleum products are strengthened
Activity 4.1: Support the development of the regulatory framework and standards adjustments related to quality control of petroleum products, based on a gap analysis with EU'sAcquis
Activity 4.2: Supporting the introduction of procedures by training modules
Activity 4.3: Provide training for 5 days for 10 people (managers and technicians of the DCPR and regional and provincial MEMEE divisions) on specific quality control methods
Results 5: The institutional, legal and regulatory framework for the development of activities related to natural gas is strengthened
Activity 5.1: Accompany final drafting of the law regarding the gas sector and its implementing decrees(on the downstream sector)
Activity 5.2: Support the DCC and the ad hoc working groups for the preparatory work on the organization and the market structure, gas contracts, commercial aspects, and regulation mechanisms
Activity 5.3: Organize a study tour for 15 days for 3 people on the organization of new gas markets in Europe
Activity 5.4: Organize training modules followed by a closing seminar in Morocco on technical regulation and security standards of gas facilities (pipelines, LNG terminal, storage), gas contracts and its commercial aspects, for the managers of the DCC and the DCPR
4. Institutional framework
The steering committee of the programme is composed of the Ministry of Energy and Mines, Water and Environment (MEMEE), the Ministry of Economy and Finance of the Kingdom of Morocco, and the European Union Delegation in Rabat.
The Ministry of Energy and Mines, Water and Environment (MEMEE)is the recipient of this twinning project.
The following administrations and state organisations of the Kingdom of Morocco will be involved in the realisation of this project: Directorates inside the MEMEE (“Direction de du Contrôle et de la Prévention des Risques” "Direction des Combustibles et Carburants"),theNational Laboratory for Energy and Mining;the Ministry of General Economic Affairs, and the Ministry of Interior which plays a central role in the prevention and the crisis management.
5. Budget The maximum budget for this twinning is estimated at 1.100.000Euros.
6. Timetable of implementation
6.1 Launching of the calls for tenders: July 2010
6.2 Beginning of the activities of the project: May 2011
6.3 Completion of the project: December 2012
6.4 Duration of the period of implementation:21 (18+3) months
Page 1 of 4 July 2010