On Tuesday in Rabat, the African Development Bank (AfDB) and OCP Group signed three loan agreements totaling $188 million to finance OCP Group’s Green Investment Program.
The first loan of $150 million from AfDB resources and the second of $18 million from the Canada-AfDB Climate Fund will finance the construction of three modular seawater desalination plants.
These plants, owned by OCP Group, a global leader in soil fertility and plant nutrition solutions, will have a combined annual capacity of 110 million m3.
In addition to making OCP Group’s industrial and mining sites self-sufficient in unconventional water, the project will provide up to 75 million m3 of drinking water to the cities of Safi, El Jadida and the areas surrounding OCP Group’s Safi and Jorf plants. More than 1.5 million people will benefit from this water supply.
The third loan of $20 million from the Clean Technology Fund will be used to finance renewable energy storage systems. These systems will supply energy to desalination plants and other production units of the OCP Group.
This financing is an example of the support that the African Development Bank, the Canada-African Development Bank Climate Fund (CACF) and the Clean Technology Fund (CTF) intend to provide in the fight against climate change, both in terms of adaptation and mitigation.
They also aim to support the most vulnerable populations by providing drinking water and creating jobs, including for youth and women, and in rural areas. The projects are key components of the OCP Group’s Green Investment Program and are part of the Moroccan government’s emergency plan for drinking water supply.
The financing agreements were signed by Ousmane Fall, Director of the Industrialization and Trade Development Department of the African Development Bank, and Mr. Karim Lotfi Senhadji, Chief Financial Officer of the OCP Group.
Representatives from the government of Canada also attended the signing ceremony, recognising the contribution of the CACF and reinforcing the shared commitment to climate change and women’s empowerment.
In addition, the closing of this financing represents the first non-sovereign financing signed under the CACF.
“We are proud to be associated with this ambitious project, which is a strategic response to Morocco’s growing water stress. The project will also optimize the management of water resources in OCP’s industrial activities through the use of desalinated seawater,” said Achraf Tarsim, Country Manager of the African Development Bank in Morocco.
“We greatly appreciate these loans, which represent a significant contribution to our $13 billion investment program from 2023 to 2027. Our sustainability goals are to achieve 100% non-conventional water by 2024, 100% renewable energy by 2027, self-sufficiency in green ammonia by 2032 and total carbon neutrality by 2040,” said Karim Lotfi Senhadji, CFO of OCP Group.
Since 1978, the African Development Bank has implemented more than 180 operations in various sectors in Morocco valued at a total of 12 billion euros.
HA/lb/as/APA