Rabat – The European Bank for Reconstruction and Development (EBRD) has finalized the signing of a new loan agreement with Morocco’s National Office of Electricity and Drinking Water (ONEE) to support Morocco’s investment plan to improve water production infrastructure.
EBRD said on Tuesday that the €250 million loan package includes a committed tranche and a €130 million uncommitted tranche.
The loan is complemented by a €5 million investment grant, the bank added, describing the agreement as the first EBRD loan in Morocco to benefit from a guarantee from Tamwilcom.
Tamwilcom is a national credit guarantee institution, the bank added, with the financing aimed at supporting Morocco’s investment plan to improve water production infrastructure.
The investments as part of the program will seek to improve the resilience and efficiency of the infrastructure, with the aim of reducing water losses and expanding critical infrastructure.
Haytham Eissa, EBRD head of Morocco, said the deal reflects the strong partnership between the bank and ONEE, as well as the bank’s commitment to boosting Morocco’s water security amid increasing pressure due to climate change.
“The investment will also support ONEE’s long-term transformation by embedding climate resilience and sustainability into its governance and financing framework,” Eissa added.
He also reiterated the bank’s satisfaction in declaring the transaction as the first EBRD loan in Morocco to benefit from the Tamwilcom guarantee mechanism.
The bank concluded its statement by recalling its more than €6.2 billion in investments since beginning operations in the country in 2012.
The statement came a few weeks after ONEE and EBRD signed a letter of intent on the program.
It also comes as ONEE announced its investment plan covering the period between 2026 and 2030.
On Tuesday, ONEE’s board of directors approved a mega investment plan with a budget of $26.4 billion.
The plan focuses on accelerating Morocco’s energy transition by expanding renewable energy, developing storage and grid flexibility solutions, and strengthening the electricity transmission network.
The plan covers efforts to boost Morocco’s renewable energy, exceeding its target of 52% in installed electricity generation capacity by 2028.
It also includes potable water production and plans to ensure Morocco meets national demand through major desalination plants in different regions.
