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business investment deal

EIB invests €70 million to enhance Morocco’s drinking water infrastructure

Tuesday 27 May 2025 - 10:20
By: Dakir Madiha
EIB invests €70 million to enhance Morocco’s drinking water infrastructure

The European Investment Bank (EIB) has signed a €70 million financing contract with Morocco’s National Office of Electricity and Drinking Water (ONEE). This significant investment aims to bolster drinking water infrastructure across the nation, particularly benefiting small and medium-sized cities and rural areas that are increasingly strained by water scarcity.

Supported by guarantees from the European Union, this funding will facilitate the implementation of ONEE’s 2025-2030 Equipment Plan. This plan emphasizes impactful local investments designed to modernize and optimize drinking water production and transportation systems across various regions.

“Ensuring sustainable access to drinking water is a vital priority, especially for territories most exposed to climate change effects,” stated EIB Vice President Ioannis Tsakiris. He added that this financing reflects the EIB’s ongoing commitment to supporting Morocco in pursuing sustainable and resilient solutions.

The initiative directly addresses Morocco’s escalating water stress, heightened by rising temperatures, increased drought frequency, and growing consumption demands. The project seeks to modernize outdated equipment, minimize network losses, enhance energy efficiency, and secure reliable drinking water supplies for vulnerable areas.

The funding will also aid in the reconstruction of hydraulic infrastructure damaged by the September 2023 earthquake, thereby reinforcing the resilience of water supply systems in affected regions.

EU Ambassador Patricia Llombart Cussac remarked, “The signing of this new financing contract responds to one of modern Morocco’s priorities and demonstrates a strong, structured partnership between the European Union and Morocco. For over 20 years, we have collaborated to address this common challenge.”

Tarik Hamane, Director General of ONEE, emphasized Morocco’s commitment to securing its drinking water supply under royal guidance. “Through this financing, ONEE, as the state’s armed wing in the drinking water sector, will continue its efforts to guarantee secure and reliable access to drinking water for populations,” he articulated.

On May 12, King Mohammed VI reviewed Morocco’s water management recovery plan during a ministerial council in Rabat. Agriculture Minister Ahmed Bouari indicated that recent rainfall, particularly in March, had a “very positive impact” on cereal production and vegetation cover.

Water Minister Nizar Baraka noted that Morocco’s average dam filling rate currently stands at 40.3%, which allows for the mobilization of 6.7 billion cubic meters of water. This amount is equivalent to one and a half years of national potable water consumption, significantly enhancing the country’s water security.

This operation aligns with the EIB’s Climate Roadmap 2021–2025, contributing directly to sustainable development goals, especially those related to clean water and climate action. The initiative further supports the National Drinking Water Supply and Irrigation Program (PNAEPI, 2020–2027), advancing Morocco’s climate adaptation priorities while reinforcing EU commitments under the Green Partnership for a resilient and sustainable economy.

Recently, ONEE secured an additional €300 million from European partners to modernize and extend Morocco’s national electricity grid, covering 731 kilometers, which includes €170 million from the EIB itself. This expansion aims to better integrate renewable energy sources and increase transmission capacity.

On May 19, Morocco signed a landmark $14 billion agreement with the United Arab Emirates to transform its water and energy infrastructure by 2030. This megadeal encompasses a 1,400-kilometer high-voltage transmission corridor and four desalination facilities capable of producing 900 million cubic meters of water annually.

Spain has also pledged €340 million toward the construction of Africa’s largest desalination plant in Casablanca. This €620 million facility is expected to provide 300 million cubic meters of water annually for over seven million residents in the metropolitan region.


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