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Rabat – Morocco’s government has announced its plans to abolish delegated management of water, electricity, and liquid sanitation.
The news comes two months after the country’s Ministry of the Interior launched a radical transformation of the liquid sanitation system and the distribution system, including the distribution of electricity and drinking water.
Under the reforms, the operational delegates and management companies will be expelled from the sector, opening up opportunities for regional multiservice companies known as SRM.
The process began earlier this year in July after the signing of a Memorandum of Understanding (MoU) between the government and the National Office for Electricity and Potable Water (ONEE).
The Moroccan government is increasing its investments to satisfy the sector’s demand and ensure better equity in terms of water and energy distribution in rural and urban areas across Morocco.
The reforms guarantee the retention of active staff and the provision of services beneficial to the industry.
After the signing of the MoU, the Ministry of Interior created a monitoring committee in addition to a steering committee set to operate under the supervision of the Interior Minister.
The committees consist of governance bodies that will draft the bill, as well as the inventory of assets and liabilities, among others.
Under the initiative, the multiservice companies working under the public sector will be responsible for assets and resources, as well as employees.
The workforce in the companies is estimated to be over 20,000 people, who will be integrated into the SRM with their seniority, allowances, and assets, among others.
The companies, which will hold the status of public limited companies, will begin operations by January 1, 2022 in several regions across the country, including Casablanca-Settat, Marrakech-Safi, Guelmim-Oued Noun, and Souss-Massa.
In the mid-term, Morocco is set to end its contract with companies in charge of electricity and water services, including Redal, Lydec, Amendis.
As an alternative, the North African country will adopt contracts that will be signed between municipalities and SRM companies.
The upcoming law will therefore establish a contractual framework between the municipalities and the SRMs.
The new system is expected to eliminate duplication, such as in investments, guarantee a higher level of public performance, professionalize management, and modernize it throughout the country.
