Project Description
Provision of a corporate loan of up to EUR 300 million denominated in MAD or EUR to the electricity branch of the Moroccan state-owned utility company, Office National de l'Electricite et de l'Eau Potable (ONEE, the "Company" or the "Borrower"). The loan proceeds will be used to provide liquidity to ONEE in order to improve the Company's financial resilience. The transaction will be structured as a Sustainability-Linked Loan (SLL) which will be the first one in the country.
Project Objectives
The loan will achieve the following objectives: (i) strengthen the financial position of ONEE as it will help restructure its balance sheet by providing long term finance and (ii) reduce ONEE's carbon footprint through the achievement of the Sustainability Performance Targets (SPTs) as set in the Sustainability Framework
EBRD loan proceeds are to be ring-fenced from the Company's fossil fuel assets.
This will be the first SLL in the country with an expected strong demonstration impact on other utilities with fossil-fuel exposure in the region as well as towards other financial institutions who could replicate similar financing structures.
Transition Impact
ETI score: 75
Transition impact will be derived from Resilient and Green qualities.
Resilient: The project will increase the resilience of the energy sector to systemic shocks and the ongoing electricity market crises.
Green: ONEE will commit to SPTs including a reduction in CO2 emissions and increased share of renewable energy.
Client Information
OFFICE NATIONAL DE L ELECTRICITE ET DE L EAU POTABLE
ONEE was created in 2012 as a result of a merger between Office National de l'Electricite, the state-owned national electricity utility, and the Office National de l'Eau Potable, the state-owned national water utility. ONEE is responsible for providing both electricity and water to its customers, as well as managing the collection of sewage and rainwater, water sanitation and public lighting in certain areas. ONEE owns and runs electricity transmission, multiple domestic electricity generation assets, and more than 50% of domestic electricity distribution.
EBRD Finance Summary
EUR 300,000,000.00
Total Project Cost
EUR 300,000,000.00
Additionality
The Bank's additionality stems from:
- Offering financing at terms and conditions which are not available from commercial sources;
- Financing the first SLL in the country with an expected strong demonstration impact to other fossil-fuel dependent utilities in the southern and eastern Mediterranean (SEMED) region, as well as towards local commercial banks who might want to replicate a similar structure in the future; and
- Supporting ONEE to reduce its carbon footprint and achieve sustainability targets.
Environmental and Social Summary
Categorised B (2019 Environmental and Social Policy). The electricity subsidiary of ONEE is an existing client of the Bank since 2012, and has been advancing satisfactorily in bringing its policies and procedures in line with best international standards. Environmental and Social Due Diligence (ESDD) will include a review of: ONEE's E&S performance and management procedures (contractor management, Occupational Health and Safety, labour management, and EHSS management systems etc.); their compliance with the previously-agreed ESAP; and the resources and readiness to manage the E&S risks associated with the objectives set forth by the SLL and in achieving the NDCs. EBRD loan proceeds are to be ring-fenced away from fossil fuel assets and operations.
ONEE will be required to develop a credible and ambitious corporate decarbonisation plan, which will include a set of relevant and ambitious SPTs and KPIs with specific timeframes. A reporting framework will need to be agreed for the KPIs as part of the Company's overall sustainability reporting in line with best practice.
As a result of the ESDD, actions identified to align the project with EBRD's PRs and Paris Alignment objectives will be included, by EBRD, in an ESAP to be agreed with the Company.
Technical Cooperation and Grant Financing
Technical assistance will be provided for the purposes of:
- Supporting ONEE to develop the Sustainability Framework;
- Assisting ONEE in establishing its digital roadmap strategy and implanting digital use cases;
- Developing a decarbonisation strategy for ONEE;
- Assisting ONEE in introducing climate governance principles;
- Assisting the Moroccan national energy regulator (ANRE) in supervising and opining on the account unbundling of ONEE.
Company Contact Information
Mohammed ZAHIDI, ONEE; Electricity branch
MZAHIDI@onee.ma
www.one.org.ma
65, Rue Othmane Bnou Affane Casablanca MAROC
PSD last updated
21 Nov 2023
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
Email: projectenquiries@ebrd.com
For state-sector projects, visit EBRD Procurement:
Tel: +44 20 7338 6794
Email: procurement@ebrd.com
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 compliance@ebrd.com. 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 ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.
