Casablanca – The European Bank for Reconstruction and Development (EBRD) has approved a substantial loan of 130 million dirhams (equivalent to $12 million) earmarked for the development of the water infrastructure in the Guelmim-Oued Noun region in the south of Morocco. This financial assistance aims to enhance access to potable water in rural areas and upgrade four existing wastewater treatment facilities.

In a strategic move, this investment by the EBRD will mark the initiation of the region’s involvement in the EBRD Green Cities Program. This program holds the potential to expedite the realization of Morocco’s environmental objectives, particularly in a region deemed pivotal by the London-based institution.

The allocated funds will be utilized to co-finance initiatives aimed at bolstering access to clean drinking water for rural households within the province of Guelmim. This will be achieved through the modernization and expansion of drinking water networks, thereby curbing losses within the supply system. Moreover, this investment endeavors to mitigate regional disparities and foster more efficient water utilization practices.

Complementing the EBRD’s financial support is an investment grant of €900.000 from the Global Environment Facility (GEF) under the Environmental Technology Transfer Program (ENVITECC). This additional funding will contribute to the modernization of four wastewater treatment plants located in the towns of Guelmim, Lakhssas, Tantan, and Mirleft.

The enhancements facilitated by these investments are expected to yield significant water savings, with approximately 10 million cubic meters of treated wastewater slated for reuse annually in irrigating the region’s green spaces and vegetation. This strategic approach aligns with the EBRD’s vision of promoting the circular economy as a viable framework for sustainable water management.

To fortify the EBRD loan, a guarantee from the European Union (EU) will be provided through its European Fund for Sustainable Development (EFSD) guarantee program. Furthermore, technical assistance funded by the EU will be deployed to facilitate the identification of optimal operational and maintenance solutions for rural water supply services, along with an efficient management model for recycled water usage, thereby ensuring the longevity of these investments.

Nandita Parshad, the Director of Sustainable Infrastructure at the EBRD, expressed enthusiasm about Guelmim-Oued Noun’s inclusion in the EBRD Green Cities Program. Meanwhile, Mbarka Bouaida, President of the Guelmim-Oued Noun region, lauded the partnership, emphasizing its significance in advancing the region’s commitment to sustainability and climate resilience.

This collaboration also drew praise from Mathieu Bousquet, the interim Director of Thematic Support, Policy Coordination, and Financial Instruments at the European Commission, who hailed it as a successful endeavor in accelerating the transition to green and low-carbon economies in neighboring EU countries.

In tandem with the financial assistance, a Green City Action Plan will be formulated with support from the GEF. This initiative aims to identify and prioritize the region’s most pressing environmental challenges while facilitating the development and implementation of strategic investment plans and measures.

Morocco’s longstanding affiliation with the EBRD, dating back to its founding membership in 2012, underscores the country’s commitment to leveraging international partnerships for sustainable development. With 96 projects already underway, totaling €4.3 billion in investment, Morocco continues to be a key beneficiary of the EBRD’s resources and expertise.