ONEE Hydro Rehabilitation

Location:

Morocco

Project number:

47379

Business sector:

Power and energy

Notice type:

Public

Environmental category:

B

Approval date:

28 Oct 2015

Status:

Disbursing

PSD disclosed:

29 Jul 2015

Translated version of this PSD: French

Project Description

The EBRD is providing a loan to the Office National de l’Electricité et de l’Eau Potable (“ONEE” or the “Company”) of Morocco. The sovereign-guaranteed senior loan of up to EUR 41.2 million would finance the rehabilitation of 11 hydropower plants and 3 dams in Morocco (the ”Project”). The Project will also include the establishment of a Project Preparation and Implementation Unit (“PPIU”) to prepare the detailed design for the works, prepare the complete tender documents, assist with the procurement process, build ONEE’s environmental and social monitoring capabilities, and ensure the successful implementation of the Project. The Bank’s loan proceeds will be also used to finance two related studies that would identify (i) key improvement areas of the operation mode of the Afourer complex and (ii) rehabilitation needs of 4 identified dams.

The Project will significantly extend the lifespan of the hydro assets as well as improve climate resilience, energy efficiency and safety.

The Project will be accompanied by a TC package described in the Technical Cooperation section below.

Transition Impact

The project is expected to have the following transition impact:

  • Demonstrations of New Products: The project will introduce for the first time in Morocco an innovative approach that integrates detailed analysis of projected climate change impacts on hydrology and corresponding structural and non-structural climate resilience measures into the upgrade of hydropower facilities.
     
  • Skills Transfer: There could be scope through this project to develop the client’s environmental and social capacity to reach international best practices. TC support is expected to enable ONEE to develop a communication plan around climate resilience practices and there may be potential to disseminate information and best practices to private sector hydro developers and other countries where ONEE provides technical assistance, such as Senegal.
     
  • The expected transition impact rating is ‘good’.

The Client

ONEE was created in 2012 as a result of a merger between Office National de l’Electricité, 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, half of domestic electricity generation (and 76% of installed capacity), and 59% of domestic electricity distribution.

EBRD Finance

Sovereign-guaranteed senior loan of up to EUR 41.2 million

Project Cost

EUR 41.2 million

Environmental and social categorisation, impact, and mitigation 

Categorised B (ESP 2014). An environmental and social due diligence (ESDD) was carried out by an independent consultant in order to identify the present risks or past liabilities associated with the construction and operation of the hydropower plants that are planned to be rehabilitated. The ESDD address in particular (i) the Environmental and Social Management System in place at the HPPs and at the corporate level, (ii) past social and environmental liabilities and impacts, (iii) the present impacts and risks the HPPs present for people and the environment (including emergency flood response and stakeholder engagement), and (iv) the specific risks associated with the proposed rehabilitation activities.  The measures required to mitigate the rehabilitation risks and to bring the HPPs and their operation into compliance with EBRD performance requirements were included in an Environmental and Social Action Plan.

Technical Cooperation

Two TC projects are expected to accompany this Project.

A pre-signing TC will assess climate change risks to hydropower operations and identify corresponding climate resilience measures.

A post-signing TC (that will be initiated once the loan agreement has been signed) will assess the production potential of all the Moroccan HPPs. This assessment will determine key best international practices on hydropower sector climate resilience to be adopted by the Company and dispersed across the sector.

Company Contact

Madame Bouchra ABDERRAHIM ONEE-Branche Electricité

65, Rue Othmane Bnou Affane Casablanca MAROC
Email: abderrahim@onee.ma

 

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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