EBRD Provides €150 Million for Morocco’s Saiss Water Conservation Program

Marrakech – European Bank for Reconstruction and Development (EBRD) officials concluded a strategic two-day visit to Morocco this week, signing a €150 million sovereign loan agreement to finance the final phase of the country’s flagship Saiss Water Conservation Program.

EBRD First Vice President Greg Guyett led the delegation alongside Vice President for Banking Matteo Patrone during meetings in Casablanca from December 11-12.

The visit marked Guyett’s first trip to Morocco in his current capacity, accompanied by Mark Davis, EBRD’s Managing Director for the Southern and Eastern Mediterranean, and Haytham Eissa, Head of Morocco operations.

During the visit, EBRD also announced a €50 million green financing package with Crédit du Maroc, combining funding from multiple international partners, including the Green Climate Fund, European Union, and Canada to support green economy initiatives across different business segments.

The primary focus of the visit centered on the Saiss water project agreement, signed by Guyett and Minister Delegate for the Budget Fouzi Lekjaa in the presence of Minister for Agriculture Ahmed El Bouari. The €150 million loan will finance construction of a water distribution network to irrigate 20,000 hectares in the water-scarce Saiss plain in the Fez-Meknes region.

This represents the third and final phase of the Saiss Water Conservation Program, bringing the total project cost to €252 million following earlier financing rounds in 2017 and 2020. The program received additional support through European Union and Green Climate Fund contributions in previous phases.

The United Kingdom provided a US$7.5 million grant through EBRD’s High-Impact Partnership for Climate Action (HIPCA) multi-donor fund. EBRD supplemented this with a €5 million investment grant and €500,000 technical assistance grant, recognizing the project’s strategic importance for Morocco.

The comprehensive Saiss program seeks to replace unsustainable groundwater abstraction with sustainable surface water use. The initiative will transfer 90-120 million cubic meters of water annually from the M’Dez dam to the Saiss plain for irrigation purposes.

The phased investment program expects to benefit approximately 5,000 farms and 1.8 million people while alleviating pressure on the Saiss aquifer. Morocco faces persistent water scarcity challenges that climate change effects continue to worsen.

The project enables climate-resilient irrigation by replacing groundwater extraction with surface water use, preserving the Saiss aquifer and strengthening agricultural resilience in the region. Technical cooperation initiatives will enhance skills in sustainable water management for young people and women in the Fez-Meknes region.

The program includes implementation of a SCADA-based system for remote management of the irrigation network, allowing efficient resource use. It features a strong focus on gender and economic inclusion through targeted technical cooperation initiatives.

Minister Delegate Lekjaa described the partnership’s foundation on solid relationships focused on delivering concrete results. He stated the financing agreement forms part of Morocco’s clear national vision to strengthen water security and ensure agricultural resilience against increased climate change effects.

Guyett noted the long-term engagement reflected in completing the strategic water conservation programme. He said EBRD will continue supporting Morocco’s priorities in modernizing water infrastructure, promoting efficient resource use, and improving rural livelihoods.

The visit builds on September’s EBRD Board of Directors mission, when officials conducted a five-day visit meeting government representatives and reviewing Bank-financed projects across multiple regions. EBRD has invested nearly €5.9 billion through 125 projects in Morocco since beginning operations in 2012.

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