Morocco secures €250 million to upgrade drinking water infrastructure

Tuesday 09 June 2026 - 13:03

By: Dakir Madiha

Morocco secures €250 million to upgrade drinking water infrastructure

Morocco's National Office of Electricity and Drinking Water (ONEE) has secured financing worth €250 million, equivalent to nearly 2.8 billion Moroccan dirhams, from the European Bank for Reconstruction and Development (EBRD) to modernize the country's drinking water production infrastructure. The letter of intent was signed on the sidelines of the EBRD Annual Meeting held in Riga, Latvia, from June 5 to 7, 2026.

The agreement was signed by senior representatives of ONEE, the EBRD and Tamwilcom, with the participation of a representative from Morocco's Ministry of Economy and Finance. The financing package will be implemented in two phases and includes investment grants as well as technical assistance designed to support project execution and improve operational efficiency.

The funding forms part of ONEE's 2025-2030 investment program, which aims to strengthen the performance of existing water facilities across the country. Planned projects include the modernization of production units, improvements in network efficiency and the adoption of higher energy-efficiency standards. These measures are intended to increase the reliability of water supply systems while reducing operational losses.

The investment comes at a time when Morocco faces growing pressure on its water resources. Lower rainfall levels, recurring drought conditions and rising demand linked to population growth and economic development have increased the need for resilient infrastructure. By upgrading its facilities, ONEE seeks to secure water supply for communities and reduce the vulnerability of essential services to climate-related disruptions.

The agreement also includes a decarbonization component. A grant of up to €1.2 million will support the development of a dedicated strategy aimed at aligning future investments with environmental objectives. The transaction also represents the first bilateral use of a Tamwilcom-backed guarantee mechanism for this type of infrastructure project, creating a potential framework for similar financing arrangements in other strategic public service sectors.

For ONEE, the new funding strengthens its ability to respond to rising water demand while supporting long-term planning and investment efforts. The initiative reflects Morocco's broader strategy to improve water security and ensure continuity of public services in the face of increasing environmental and economic challenges.