Doha – Spain has announced a financial commitment of €340 million (approximately MAD 3.65 billion) for the construction of Africa’s largest desalination plant in Casablanca.
The funding agreement was formalised on Wednesday during an official 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 gathered Tarik Hamane, Director General of Morocco’s National Office of Electricity and Drinking Water (ONEE), Spain’s Ambassador to Rabat, Enrique Ojeda Vila, along with several representatives from the bilateral business community.
“This project not only responds to a vital need, but also symbolises the excellence of economic relations between Spain and Morocco, based on trust and business cooperation,” stated López Senovilla during the ceremony.
The massive project, led by a consortium including Spanish firm Acciona alongside Moroccan companies Green of Africa and Afriquia Gaz, will have a production capacity of 838,000 cubic meters per day, equivalent to 300 million cubic meters annually.
This facility aims to provide sustainable water access to approximately 7.5 million people in the Casablanca region.
The Spanish financial support comprises three main instruments. First, a €250 million loan from the Fund for Business Internationalization (FIEM) will cover the design, construction, and operation of the infrastructure.
Second, an 80% coverage guarantee through the Spanish Export Credit Insurance Company (CESCE) backs a €70 million secondary financing component provided by Société Générale.
Third, €31 million from the Foreign Investment Fund (FIEX), managed by COFIDES, will support Acciona’s equity participation in the project.
During the ceremony, Secretary López Senovilla stated that the project combines resource management, innovation, and energy transition, noting that the facility will be powered by renewable energy sources.
Minister Fettah Alaoui described the plant as “one of the most emblematic achievements of the national sustainable water management strategy,” which aims to mobilise 1.7 billion cubic meters of drinking water by 2030 through approximately twenty similar installations, compared to 320 million cubic meters currently available.
The desalination plant is being constructed in the Lamharza Essahel commune in El Jadida province. The project has currently reached 20% completion, with the first phase scheduled for delivery in February, 2027, providing 548,000 cubic meters daily.
A second phase, planned for August, 2028, will increase the total capacity to over 800,000 cubic meters per day.
The project will operate under a 30-year public-private partnership model, including three years for construction and 27 years for operation and maintenance. The facility will incorporate cutting-edge desalination technology and sustainable energy systems.
This infrastructure project demonstrates the strong economic relationship between Morocco and Spain. Currently, Spain stands as Morocco’s primary trading partner, with bilateral exchanges exceeding €22.5 billion and a trade surplus of over €3 billion in Spain’s favour.
More than 350 Spanish companies operate in Morocco across various sectors including infrastructure, energy, banking, and automotive industries, contributing to job creation and economic growth in both countries.
In 2024, Spanish exports to Morocco increased by approximately 6%, showing the strategic importance of the Moroccan market for Spain’s economy.
Source: https://bit.ly/437KgRi
