ONEE Water Supply

Location:

Morocco

Project number:

43597

Business sector:

Municipal and environmental infrastructure

Notice type:

Public

Environmental category:

B

Approval date:

15 Jan 2014

Status:

Disbursing

PSD disclosed:

07 Oct 2013

Translated version of this PSD: French

Project Description

The EBRD is considering a sovereign-guaranteed loan of up to EUR 65 million to Office National de l’Électricité et de l’Eau potable (“ONEE” or the “Company”) to finance drinking water supply to 3 medium sized cities and 260 rural communities in the regions of Ouarzazate, Azilal and Benguerir. These investments will address critical water supply needs and will benefit over 480,000 inhabitants.

The loan will also finance the third phase of a nationwide Performance Improvement Programme, launched by the government in 1995. ONEE has implemented successfully the initial two phases of the Programme, providing 90 per cent of the rural population with access to drinking water.

The success of the project will be measured by the following benchmarks:

  • Total population benefiting from improved access to tap water.
  • Annual reduction in tonnes of CO2 equivalent derived from the lowering of water losses system-wide.

Transition Impact

The Project will support further access to drinking water in rural areas, which will result in improvement of access to drinking water to less-developed regions of the country. The Company will participate in a Financial and Operating Performance Improvement Programme (“FOPIP”).

The Client

ONEE is state-owned. It was recently created as a joint water and electricity company. Its water division produces 972 million m3 of drinking water per year, operates 70 water treatment plants and supplies 1.6 million clients. It also collects and treats wastewater in 87 communes covering 3.3 million inhabitants.

EBRD Finance

A sovereign-guaranteed loan of up to EUR 65 million to ONEE.

Project Cost

EUR 81 million, including VAT.

Environmental Impact

The project has been categorised B in accordance with EBRD’s 2008 Environmental and Social Policy. The Bank has undertaken an environmental and social due diligence of the Company and the project with the help of an independent consultant, consisting of an E&S audit of the Company's management systems and practices, the existing facilities and operations, and an E&S analysis of the impacts and benefits of the proposed investment programme. The due diligence included visits to the Company’s facilities and a review of the E&S impacts of the performance improvement programme to determine project compliance with the relevant EBRD's Performance Requirements (“PRs”).

The reliability of the water supply services will be significantly improved and the drinking water quality is expected to meet national and EU standards as a result of the Bank's Project. However, for the few parameters where the Moroccan legislation is less stringent than that of the EU, the Company will be asked to monitor drinking water compliance in accordance with EU requirements to confirm compliance in the Project.

The implementation of the Project will also improve sanitation and hygienic conditions, and have a significant positive impact on public health and safety. Moreover, the Stakeholder Participation Programme (“SPP”), aimed at enhancing public ownership by encouraging water conservation, increasing public participation in the provision of water services (service quality, rehabilitation activities, tariffs integrating poverty and social issues) and raising public awareness on issues related to the project implementation and water use will be developed and implemented.

The Bank’s environmental and social due diligence concluded that any adverse future environmental and social impacts resulting from project implementation will be temporary, and limited to the Company’s operational and project construction sites. Potential adverse impacts will include noise, dust and air pollution from construction machinery, local disruption of drainage, light pollution and generation of construction wastes.

An Environmental and Social Action Plan (“ESAP”) and Stakeholder Engagement Plan (“SEP”) have been developed requiring the project to be designed, constructed and operated in accordance with relevant national and EU standards and EBRD’s PRs and to mitigate any negative impacts from the project implementation. Implementation of the ESAP and SEP will be covenanted in the Loan Agreement.

The Company will be required to provide the Bank with annual environmental and social reports, including updates on the implementation of project and the ESAP in compliance with EBRD PRs. The Bank will be monitoring the project through reviewing these reports and may also undertake site visits or independent E&S audits, as required.

Technical Cooperation

The project will benefit from the following TC of up to EUR 4.2 million:

  • Analysis of the environmental and social impacts, issues and risks and a gap analysis financed from the Bank’s own resources.
  • FOPIP to ensure the implementation of International Financial Reporting Standards (“IFRS”) to the Company’s accounts and a study on the optimal delivery method of water services to rural areas.
  • Stakeholder Participation Programme aimed at enhancing public ownership by encouraging water conservation, increasing public participation in the provision of water services and raising public awareness on issues related to the project implementation and water use.
  • Implementation Support Services will include contract management support and construction supervision.
  • Based on the findings of the FOPIP Consultant and provided that an OBA approach is selected as the appropriate method to deliver water services in rural areas, a pilot programme of Private Sector Participation based on this approach will be funded.
  • Lenders’ monitor to supervise the implementation of the Project.
 

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

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 how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

Share this page: