Spain invests €340 million in Casablanca desalination project

Thursday 08 May 2025 - 07:50

By: Dakir Madiha

Spain invests €340 million in Casablanca desalination project

Spain has committed €340 million (approximately MAD 3.65 billion) to construct Africa’s largest desalination plant in Casablanca, a significant move aimed at addressing the region's water scarcity challenges.

This financial agreement was formalized during a ceremony attended by Spain’s Secretary of State for Trade, Amparo López Senovilla, and Morocco’s Minister of Economy and Finance, Nadia Fettah Alaoui. The event also featured notable figures such as Tarik Hamane, Director General of Morocco’s National Office of Electricity and Drinking Water (ONEE), and Spain’s Ambassador to Rabat, Enrique Ojeda Vila.

“This project not only responds to a vital need but also symbolizes the excellence of economic relations between Spain and Morocco, based on trust and business cooperation,” stated López Senovilla, highlighting the collaborative spirit underpinning this endeavor.

The ambitious project, spearheaded by a consortium that includes the Spanish firm Acciona alongside Moroccan partners Green of Africa and Afriquia Gaz, is set to produce 838,000 cubic meters of water daily, translating to an impressive annual output of 300 million cubic meters. This facility aims to ensure sustainable water access for approximately 7.5 million residents in the Casablanca region.

The financial framework supporting this initiative comprises several key components. A €250 million loan from the Fund for Business Internationalization (FIEM) will facilitate the design, construction, and operation of the facility. Additionally, an 80% coverage guarantee from the Spanish Export Credit Insurance Company (CESCE) will back a €70 million secondary financing component provided by Société Générale. Furthermore, €31 million from the Foreign Investment Fund (FIEX), managed by COFIDES, will bolster Acciona’s equity participation in this pivotal project.

López Senovilla emphasized that the plant embodies principles of resource management, innovation, and energy transition, noting that it will be powered by renewable energy sources. Minister Fettah Alaoui echoed this sentiment, describing the plant as “one of the most emblematic achievements of the national sustainable water management strategy,” which aims to mobilize 1.7 billion cubic meters of drinking water by 2030 through a network of similar installations.

Currently situated in the Lamharza Essahel commune within El Jadida province, the project has reached 20% completion, with the first phase scheduled for delivery in February 2027, providing an initial capacity of 548,000 cubic meters daily. A subsequent phase, anticipated for August 2028, will elevate the total capacity to over 800,000 cubic meters per day.

Operating under a 30-year public-private partnership model, the facility will span three years of construction followed by 27 years of operation and maintenance, incorporating advanced desalination technologies alongside sustainable energy systems.

This infrastructure project serves as a testament to the robust economic relationship between Morocco and Spain. Spain remains Morocco’s primary trading partner, with bilateral exchanges exceeding €22.5 billion, reflecting a trade surplus of over €3 billion in favor of Spain. The presence of more than 350 Spanish companies across various sectors, including infrastructure, energy, banking, and automotive industries, underscores the contributions to job creation and economic growth in both nations.

In 2024, Spanish exports to Morocco saw an increase of approximately 6%, further emphasizing the strategic significance of the Moroccan market for Spain’s economy.