GrCF2 W2 E2 - Project Kasbah



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

20 Jul 2022



PSD disclosed:

28 Oct 2022

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

The provision of an investment of up to MAD 400 million (€ 37m equivalent) in favour of the City of Agadir (the City or Agadir), one of the major cities of Morocco and the capital city of Souss Massa Region. The investment will entail the subscription to a local currency senior unsecured bond for up to MAD 1 billion (€ 93 million equivalent) through a private placement.



Project Objectives

The Bond proceeds will be used to finance the city's contribution to fund infrastructure projects under its 2020-2024 strategic investment plan also known as Urban Development Program (the PDU) and to refinance existing loans. The investment will contribute to the creation of Morocco's domestic municipal bond market with the issuance of the first municipal bond by a local authority in Morocco.



Transition Impact

ETI score: 70

Transition impact of the project arises from the Green and Resilient transition qualities:

Green. The Project will support City's on-going investment plan focused on green, environmental and inclusive projects, including to further implement its infrastructure investment programme. The Project will also serve as a trigger investment for the City of Agadir to join the EBRD Green Cities and will support the development of a Green City Action Plan (GCAP).

Resilient. The Project will contribute to the creation of Morocco's domestic municipal bond market with the issuance of the first municipal bond by a local authority in Morocco as well as developing a Financial and Operational Performance Improvement Plan (FOPIP).


Client Information


Agadir is the capital city of the Souss Massa Region, one of 12 Moroccan regions established by the territorial division of 2015. The region is the 6th largest economy, hosting 6.7 per cent of the country's Gross Domestic Product. Main drivers of the City's economy are tourism, fishing, and industry.

EBRD Finance Summary

MAD 400,000,000.00

Subscription to a local currency municipal bond in Morocco for an amount of up to MAD 400 million (€ 37 million equivalent), representing up to 40 per cent of the total issue.

Total Project Cost

MAD 1,000,000,000.00


The Bank's additionality is mainly driven from closing the funding gap and supporting the creation of an effective municipal bond market in Morocco.

Environmental and Social Summary

Categorised B (ESP 2019). The Project is a capital markets transaction involving a municipal bond. The proceeds of the EBRD participation in the new bond will be used solely for refinancing of the client's existing loans for past municipal investments and are not envisaged to be directed at specific physical assets or any new CAPEX investments and will explicitly exclude any new high-risk or category A projects. Therefore, the Environmental and Social Due Diligence (ESDD) was focussed on assessing the risks and impacts associated with the Agadir City's existing Environmental and Social (E&S) management systems and capacity, and review of the risks associated with the existing operations. This has been done through review of the corporate ESDD questionnaire and additional documentation provided by the Agadir City. The available information allowed for an assessment of the client's E&S capacity and the associated environmental and social risks of this project in accordance with the Bank's 2019 ESP Performance Requirements (PRs).

ESDD identified that the city is currently implementing a Sustainable Energy Action Plan and working towards achieving their energy efficiency management certification in line with ISO 50001, aiming also to reduce the carbon intensity of its municipal operations. The city will also need to ensure that the implementation of the GET enabled investments in its Urban Development Plan ("PDU") is in compliance with the PRs. This will be addressed through the Environmental and Social Action Plan (ESAP) that will be included in the Framework Agreement to be signed with the city prior to subscription. After subscription, the Bank will also require the client to comply with the PRs, and the EBRD proceeds will not be used for any new high-risk or Category A projects in line with the EBRD's E&S Policy 2019.

Based on the bond issue Information Memorandum (IM) from thecCity, the indicative portfolio of Enabled EBRD's Green Economy Transition ("GET") investment projects of the city is likely to be driven by their PDU until 2024 and focused on green investments related to public transport and street lighting. The Project supports Paris Agreement goals for mitigation based on Enabled GET investments.

Given the anticipated focus of the Agadir City on predominantly green investments, this bond project will be a 'trigger' project to develop a GCAP and enable Agadir to join the EBRD Green Cities. The proposed 'enabled GET' investments are subject to review of ESDD reports and future monitoring to allow the Bank verify the GET impacts.

Post-signing Financial and Operational Performance Improvement Programme consultants will also be expected to assist the Client with the capacity building to implement E&S commitments in the Framework Agreement, including the ESAP implementation and annual E&S reporting to the EBRD. The Bank will monitor the Client's performance through reviewing annual reports and site visits, if deemed necessary.

Technical Cooperation and Grant Financing

€ 1 million funding will be sought to complement the Bank's investment by a Technical Cooperation (TC) assignment for the development of a GCAP for Agadir including gender and inclusion assessment and a TC assignment for the development of a FOPIP.

PSD last updated

28 Oct 2022

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

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.

Specific requests for information can be made using the EBRD Enquiries form.

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 to get guidance and more information on IPAM and how to submit a request.


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