Two loans granted in Rabat today to Moroccan public institutions in support of two priority national policies:
- EUR 170m to Office National d'Electricité (ONE) for upgrading the power grid to meet Morocco's rapidly growing energy demand
- EUR 60m to Caisse pour le Financement Routier (Roads Financing Fund) for the construction of roads opening up rural areas
This morning, FEMIP, the European Investment Bank's financial arm for the Mediterranean area, provided two loans for two priority investment programmes set up by the Moroccan Government to underpin the country's economic and social development: EUR 170m to Office National de l'Electricité for upgrading the power grid and EUR 60m to Caisse pour le Financement Routier to facilitate the implementation of the second rural road construction programme covering the period 2005-2012.
The respective loan contracts were signed in Rabat today by Mr Karim Ghellab, Chairman of Caisse pour le Financement Routier, Mr Fassi Fihri, CEO of Office National d'Electricité and Mr Philippe de Fontaine Vive, EIB Vice-President responsible for activities in the Mediterranean region, in the presence of Mr Salaheddine Mezouar, Minister of the Economy and Finance, Ms Amina Benkhadra, Minister for Energy, Mines, Water and the Environment, and Ambassador Bruno Dethomas, Head of the European Commission's Delegation in the Kingdom of Morocco. The guarantee contracts were signed on the same day by Mr Mezouar and Mr de Fontaine Vive.
Stabilising and upgrading the power grid to meet high household and corporate demand
Energy demand in Morocco has grown by more than 6% per year over the past 20 years, a trend which is expected to continue. The power grid is currently running at close to saturation level. The FEMIP loan will enable the implementation of the large-scale investment plan launched by the Moroccan Government for the period 2008-2015. This includes major works on overhead power lines and substations throughout the country in order to stabilise the electricity system, reduce losses and guarantee the power supply to households and businesses.
This project is being co-financed by the World Bank (EUR 92m), the African Development Bank (EUR 110m) and Agence Française de Développement (EUR 50m).
Construction of 15 000 km of rural roads by 2012 to link up the whole country
The Moroccan Government is speeding up its rural road construction policy and planning to develop 15 500 km of roads spanning the majority of Morocco's provinces by 2012. FEMIP's loan will help to carry out this investment programme, which aims to open up rural areas and thus improve the country's economic and social balance.
This project is being co-financed by Agence Française de Développement (EUR 60m), the World Bank (EUR 50m) and the Neighbourhood Investment Facility (EUR 9.8m).
Background note:
The purpose of FEMIP, the Facility for Euro-Mediterranean Investment and Partnership, is to assist the development of nine countries: Algeria, Egypt, Gaza/West Bank, Israel, Jordan, Lebanon, Morocco, Syria and Tunisia. Its two investment priorities are support for the private sector, the driving force behind sustainable growth, and the creation of an investment-friendly environment through state-of-the-art infrastructure and appropriate banking systems. FEMIP has established itself as the Mediterranean region's leading financial partner with investments totalling more than EUR 7bn since 2002. It also promotes the dialogue between the two shores of the Mediterranean, on an institutional level as well as with representatives from the private sector and civil society.