The financing is now in place for the construction of a 140 MW wind power plant near Tangier in the north of Morocco. The Spanish government recently finalised a loan of EUR 100 million from its development assistance fund. The loan is to be repaid over 20 years, with an eight-year grace period and at an annual interest rate of 0.5%. Further funding is being provided by the European Investment Bank, Germany's KfW Bank and Morocco's National Office for Electricity. Gamesa has been selected to build and operate the plant and will also supply 165 of its 850 kW turbines, scheduled to be up and running by 2009. In a separate move, in May the World Bank approved a $1 million loan to the Moroccan government to support energy diversification and security of supply and to encourage greater competition in the electricity market, among other objectives. While the loan is not directly linked to any specific investment in renewables, it "backs up a strong policy reform program which aims at the installation of around 1000 MW of additional renewable energy by 2012, from wind and solar," says the World Bank's Pierre Audinet, adding that the bulk of that will probably be from wind.