Morocco has obtained €250 million (approximately $285 million) in financing to upgrade its drinking water infrastructure, as the country faces mounting pressure on its water resources.
The agreement was signed between the National Office of Electricity and Drinking Water (ONEE) and the European Bank for Reconstruction and Development (EBRD) at the bank's annual meetings in Riga, Latvia. ONEE Director General Tarik Hamane, EBRD Vice President Matteo Patrone, and Tamwilcom Director General Saïd Jabrani signed the deal, with Treasury and External Finance Director Mohammed Tarik Bchir present at the ceremony.
The funding will be disbursed in two phases and directed toward improving existing drinking water production facilities. The package also includes technical assistance and a €1.2 million grant to support ONEE in developing an emissions reduction strategy.
The investment is part of ONEE's 2025–2030 plan, which targets operational improvements rather than new construction. Planned projects include reducing water losses in distribution networks, upgrading treatment plants, improving water transport systems, lowering energy consumption, and expanding the use of renewable energy.
The funding will be disbursed in two phases and directed toward improving existing drinking water production facilities
Morocco has experienced prolonged drought over the past several years, alongside periods of intense rainfall — conditions that have strained water availability. The World Resources Institute lists Morocco among countries facing severe water stress, with per capita freshwater availability at critically low levels.
The country is addressing its water deficit through the National Programme for Drinking Water Supply and Irrigation, a 115 billion dirham initiative. The government aims for seawater desalination to meet 63% of national drinking water needs by 2030, while officials emphasise that maintaining and improving existing infrastructure remains a parallel priority to limit losses and ensure supply reliability.
The loan is fully guaranteed by Tamwilcom under a mechanism designed for public institutions and state-owned enterprises, a structure intended to reduce lending risk and secure more favourable financing terms for ONEE.
The deal extends a relationship between the EBRD and Morocco's water sector that dates to 2014, during which the bank has committed nearly €119 million to drinking water projects in the country. A previous €65 million programme focused on operational improvements at ONEE has been completed, and its outcomes were cited as a basis for the new, larger funding package.
ONEE has also set a target of sourcing 56% of its installed capacity from renewable energy by 2027 as part of its broader decarbonisation goals.
