Rabat – The African Development Bank (AfDB) and Morocco’s giant fertilizer company, OCP Group, signed three loan agreements totaling $188 million on Monday in Rabat.
The agreement is part of the financing for the OCP’s green investment program.
The first loan which amounts to $150 million from AfDB, and the second loan of $18 million from the Canada-African Development Bank Climate Fund (CACF) will be used to finance the construction of three modular seawater desalination plants.
The OCP Group plants will have a total annual capacity of 110 million cubic meters.
The project seeks to provide autonomy for OCP’s industrial and mining sites with non-conventional water, in addition to providing up to 75 million cubic meters of drinking water to the cities of Safi, El Jadida, and adjacent areas near the Jorf plants of OCP.
More than 1.5 million people will benefit from this drinking water.
The third loan amounts to $20 million from the Clean Technology Fund (CTF) and will finance energy storage systems generated by renewable resources. This project will power desalination plants and other OCP Group’s productive units.
The CFO of OCP Group celebrated the agreement signing, stressing that the group greatly “appreciates these loans” that represent significant contributions to OCP’s $13 billion investment program.
“Our sustainability goals aim to achieve 100% non-conventional water by 2024, 100% renewable energy by 2027, self-sufficiency in green ammonia by 2032, and total carbon neutrality by 2040,” Karim Lotfi Senhadji said.
In December 2022, OCP presented its new green investment plan to King Mohammed VI. The program covers the period between 2023 and 2027 to consolidate OCP’s international position and also emphasizing the group’s commitment to a faster transition toward a carbon-central economy.
AfDB also expressed satisfaction with the project, stressing its potential to contribute to addressing water stress in Morocco.
“We are proud to be associated with this ambitious project that provides a strategic response to the increasing water stress in Morocco,” head of AfDB’s country office in Morocco Achraf Tarsim said.
He added that the project will also optimize the management of water resources in OCP’s industrial activities by using desalinated seawater.
Jean Touchette, Counselor and Head of Cooperation At the Canadian Embassy in Morocco, described the fund as “being affected employed” in Morocco to contribute to addressing climate challenges.
“We are delighted to be associated with it alongside our partners,” Touchette said.
