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Rabat – The Canada-African Development Bank Climate Fund (CACF) has approved a $18 million loan for OCP Group’s seawater desalination plants.
A statement from AfDB said on Tuesday that the loan is part of a $36.3 million budget approved by CACF in support of two private sector operations to advance climate adaptation in Africa.
The first loan comprises $18.3 million for the rehabilitation and expansion of the Port Autonome de Cotonou in Benin.
As for the second loan, it is a $18 million budget to support the construction of three sweater desalination plants under OCP’s Green Investment Program.
Both the first and second budgets are in the form of concessional loans.
“The project in Morocco will produce and sell 105 million cubic meters of potable water to around 1.5 million people in the cities and vicinity of Safi and El Jadida, on the Atlantic coast of the country,” the statement said.
The press release recalled the challenges Morocco faces in terms of water scarcity, citing the World Resource Institute’s ranking of the North African country as one of the countries most at risk of chronic water scarcity.
“Women and young girls will benefit through improved time management and health,” the statement said, adding that the bank is co-financing the project with $150 million.
Read also: New Investment Plan Reaffirms OCP’s Commitment to Morocco’s Sustainable Future
AfDB emphasized its commitment to the development of Africa, stressing that CACCF is part of the efforts seeking to contribute to the continent’s prosperity.
The statement described CACF as a “joint effort” of the AfDB and Canada, with the common goal of extending concessional loans to “eligible climate change projects in Africa.”
In addition to the loans approved for OCP and the project in Benin, CACF also approved $20.4 million for two other public sector climate change-related projects, including one in Senegal and the other in Nigeria.
“CACF is proving to be an extremely efficient and effective facility to deliver climate adaptation benefits at scale, and we are hopeful that we will be able to continue to support the fight against climate change thanks to the invaluable support from the Canadian government,” the statement quoted Gareth Phillips, Manager of the Climate and Environment Finance Division at the AfDB, as saying.
