The EBRD granted a loan to the Office National de l'Electricite et de l'Eau Potable ("ONEE") of Morocco in 2013. The sovereign-guaranteed senior loan of EUR 60 million financed the final phase of the Global Rural Electrification Programme ("PERG"). The remainder of the project costs have been met by ONEE. The project implementation has been successfully completed in June 2018.
The initial objective of the Project, to electrify 1,234 villages corresponding to 34,667 households, has been exceeded during the project implementation to reach 1,250 villages corresponding to 35,446 households. Under the PERG programme, ONEE has succeeded in providing electricity services to remote areas, covering in aggregate more than 99.58% of the Moroccan rural population at mid-2018.
The PERG programme success contributed to the creation of a recognised expertise in the rural electrification at both ONEE and local private sector's levels. The project also improved the quality of life in these remote areas through improved safety, hygiene, medical and educational services. A thorough environmental, social and financial impact study, financed by EBRD through SEMED cooperation funds account, is expected to be finalised by the end of 2020 and the main findings will be disclosed in due course.
In the context of promoting a liberalised and transparent electricity market with more decentralised renewables, the Bank is assisting ONEE in updating its Service Level Agreements ("cahier de charges ONEE") that will be key for the future regulation of the energy sector. In addition, the collaboration between the Bank and ONEE engaged since 2013 is contributing to improve ONEE's environmental, social, health and safety reporting and management plans standards; as well as its corporate governance, transparency and accountability in internationally accepted standards through the future introduction of IFRS accounts.
OFFICE NATIONAL DE L ELECTRICITE ET DE L EAU POTABLE
The Office National de l'Electricite et de l'Eau Potable (the "Company" or "ONEE") is a state-owned electricity and water company incorporated in the Kingdom of Morocco. It was created following the merger of the national electricity company Office National de l'Electricite ("ONE") and the national water company Office National de l'Eau Potable ("ONEP") in April 2012. ONEE provides both electricity and drinkable water to its customers, as well as is managing the collection of sewage and rainwater, water sanitation and public lighting.
EBRD Finance Summary
Sovereign-guaranteed senior loan of up to EUR 60 million.
Total Project Cost
EUR 77 million.
The EBRD transaction offered a long term financing that was not generally available for ONEE following the merger between ONE and ONEP that formed the company. The Bank brought experience in renewable energy framework development. Its involvement in decentralised generation also strengthened its ability to support policy dialogue for the development of regulation and markets. The transaction also requires adherence to the Bank's procurement policies, environmental and social policies and agreement and implementation of an ESAP.
Environmental and Social Summary
The Project was categorised B in accordance with EBRD's 2008 Environmental and Social Policy.
Phase IV of the rural electrification programme (PERG IV), consisted of the construction of new low-and-medium voltage distribution lines, has resulted in significant benefits for 1,250 villages that previously were not connected to the power grid. Environmental risks and impacts associated with the construction of the distribution lines were limited and managed appropriately by the Office and its contractors.
Due diligence carried out in 2012 included a site visit by the Bank and the resulting ESAP agreed with ONE focused on contractor management worker and community health and safety, and overall good practice managing environmental and social construction risks.
Project implementation was monitored via annual monitoring reports and a second site visit carried out during 2014. Despite some delays in project and ESAP implementation, the overall E&S performance of ONEE was deemed satisfactory.
Technical Cooperation and Grant Financing
Alongside the investment, three technical cooperation (TC) components are being implemented with the support of expert consultants:
(i) TC for the assessment of the social, gender, environmental and financial impact of the PERG program since 1995 on residential and non-residential users and small local communities.
(ii) TC for the gap analysis between ONEE's accountability standards and International Financial Reporting Standard ("IFRS") to enable the Company access international capital markets in the future and improve its corporate governance, transparency and accountability standards.
(iii) TC for the review of ONEE's existing Service Level Agreement ("Cahier de Charges ONEE") which regulates its relationship with its customers since 1975, and which revised version will form part of the future regulation for the sector.
Company Contact Information
The initial objective of the Project has been exceeded during the project implementation by electrifying 1,248 villages corresponding to 35,331 households. Under the PERG programme, ONEE has succeeded in providing electricity services to remote areas, covering in aggregate more than 99.58% of the Moroccan rural population at mid-2018.
The PERG programme success contributed to the creation of a recognised expertise in the rural electrification at both ONEE and local private sector's levels. Morocco is now supporting several African countries in their rural electrification programmes. The project also improved the quality of life in these remote areas through improved safety, hygiene, medical and educational services. A thorough environmental, social and financial impact study, financed by EBRD through SEMED cooperation funds account, will be finalised in Q2 2020 and disclosed in 2020.
In the context of promoting a liberalised and transparent electricity market with more decentralised renewables, the Bank is assisting ONEE in updating its Service Level Agreements ("cahier de charges ONEE") that will be key for the future regulation of the energy sector. This technical assistance is provided alongside other Policy Dialogue initiatives of the Bank involving ONEE, such as the opening of the electricity market to private renewable energy producers under 13-09 law, and the drafting of the country's first Electricity Grid Code.
Finally, the collaboration between the Bank and ONEE engaged since 2013 is contributing to improve ONEE's environmental, social, health and safety reporting and management plans standards; as well as its corporate governance, transparency and accountability in internationally accepted standards through the introduction of IFRS accounts expected by FY2024.
PSD last updated
06 Oct 2020
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Environmental and Social Policy (ESP)
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More information on the EBRD’s practices in this regard is set out in the ESP.
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Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email email@example.com to get guidance and more information on IPAM and how to submit a request.