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IFC Approves $108 Million Loan for Water Pipeline Expansion in Morocco”

To boost sustainable water supply for fertilizer production, agriculture, and households in Morocco, the International Finance Corporation (IFC) has announced a €100 million loan (approximately US$108 million) to OCP Group, the global leader in plant nutrition solutions and phosphate-based fertilizers. The loan will finance the construction of a 219-kilometer water pipeline and pumping station to transport desalinated water from OCP’s existing and planned desalination plants in Jorf Lasfar on the Atlantic coast to its production operations in Khouribga, located in central Morocco.

With construction already well underway, the pipeline is expected to have an annual capacity of 80 million cubic meters—equivalent to the volume of over 32,000 Olympic-sized swimming pools. This infrastructure project is a key part of Morocco’s efforts to address its ongoing water crisis, which has severely impacted agricultural production and economic development.

The initiative will provide OCP with a reliable and sustainable source of desalinated water, freeing up local water supplies for farmers, businesses, and residents in the Khouribga region. Mostafa Terrab, Chairman and CEO of OCP Group, highlighted the project’s significance: “We are grateful for IFC’s support in addressing one of the most pressing challenges of our time – water scarcity. This project is a testament to OCP’s commitment to sustainable development and innovation. By securing a reliable source of desalinated water, we are not only ensuring the growth of our operations but also providing essential resources to local communities. This aligns perfectly with our vision of fostering resilience and food security across Africa.”

Makhtar Diop, IFC’s Managing Director, praised the project for its long-term impact: “Water scarcity is a major obstacle to economic development in parts of Africa – and this innovative project by OCP demonstrates how businesses can develop solutions that tackle complex development challenges with tangible benefits for communities. By supporting the construction of this pipeline, we enable OCP to not only meet its water needs but also provide vital water resources for local communities and support the production of high-value crops, contributing to a more resilient and food-secure Africa.”

The water pipeline project is part of OCP Group’s broader Water Program, which is being implemented by its subsidiary, OCP Green Water. The program aims to supply 100% non-conventional water to OCP by the end of 2024. By 2027, OCP plans to invest US$611 million to increase its production capacity to 560 million cubic meters per year of desalinated water and 60 million cubic meters per year of treated wastewater. This will not only meet the company’s industrial water needs but also ensure additional capacity for local communities, enhancing their resilience to climate change.

This initiative supports Morocco’s sustainable development priorities and aligns with the World Bank Group’s strategy in the country, which emphasizes climate resilience. By 2030, the pipeline is expected to be powered entirely by renewable energy, ensuring access to sustainable water resources while mitigating climate shocks.

The project also aligns with IFC’s strategy in Morocco, which focuses on facilitating investments that scale sustainable infrastructure and promote green and inclusive growth, further supporting the country’s broader climate and development goals.

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