ONEE sustainability linked loan

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

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 ID 53936

Status Approved

Location

Morocco

Business Sector

Energy

Notice Type

State

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Mohammed ZAHIDI, ONEE; Electricity branch
MZAHIDI@onee.ma
www.one.org.ma
65, Rue Othmane Bnou Affane Casablanca MAROC

Project ID 53936

Status Approved

Location

Morocco

Business Sector

Energy

Notice Type

State

Environmental Category

Approval Date

04 Dec 2024

Disclosure date

14 Apr 2023

Project description

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:77

ion 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 & 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 the 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 its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) 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 also requires its clients to disclose information, as appropriate, about the risks and impacts of 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 of the Bank's activities 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 EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either 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. OCCO will follow-up all matters reported. It will review all matters reported. 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, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. 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 (for example, 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 the 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 and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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ONEE sustainability linked loan

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)