- Team Europe: This is the first project to be signed under the EU-Morocco Green Partnership.
- This financing supports ONCF's low-carbon sustainable mobility investment programme.
- The €250 million (MAD 2.6 billion) loan will help to improve the safety, capacity and speed of rail services.
The European Investment Bank (EIB) and the Moroccan national railway company Office National des Chemins de Fer (ONCF) have announced the signature of a €200 million (MAD 2.1 billion) finance contract, accounting for 80% of an overall funding envelope of €250 million made available to ONCF. The remaining €50 million (MAD 527 million) is planned to be covered by a signature to take place in 2023.
This is the first project signed under the EU-Morocco Green Partnership — signed in Rabat on 18 October 2022 — which itself is the first partnership to be formalised under the external policy dimension of the European Green Deal. This financing is also a concrete implementation of the political policy of the European Union's new Agenda for the Mediterranean and the Team Europe initiative.
This new financing will support ONCF's investment plan aiming to renew existing conventional railway infrastructure and strengthen the modernisation of equipment with cutting-edge technology across the 2 300 km Moroccan rail network. It will contribute to the development of low-carbon sustainable mobility, while also promoting more equal access to rail services in the different regions of the country.
The loan will finance the projects of the Moroccan national rail network rehabilitation and upgrade programme for infrastructure, equipment and industrial workshops. It will contribute in particular to the renewal and repair of tracks, infrastructure and electric traction installations, as well as improvements to signalling, communications and safety systems on the rail network.
Climate change adaptation measures such as the implementation of flood protection programmes are also planned. The EIB will help ONCF to consolidate its climate adaptation roadmap throughout the project.
Fully aligned with the goals of the Paris Agreement, this support will contribute to the EIB's key priorities as the EU climate bank in transport and climate action, while also strengthening the implementation of Morocco's nationally determined contributions (NDCs).
This operation will also help to achieve several United Nations Sustainable Development Goals (SDGs), particularly building sustainable, resilient and accessible infrastructure (SDG 9.1), ensuring access to safe, accessible, viable and affordable transport systems for all (SDG 11.2), and strengthening resilience and adaptive capacity to climate-related hazards (SDG 13.1).
“Safe, accessible and modern transport is key to the economic and social development of Morocco. Reliable and efficient railway infrastructure will not only facilitate the movement of goods and services, but will also improve economic and social inclusion across the country by making access for vulnerable people and those with reduced mobility easier,” said EIB Vice-President Ricardo Mourinho Félix, who is responsible for financing in Morocco. “We are pleased with our partnership with ONCF and this new project, which is fully in line with the EIB's overall climate objective, and which enables us to support Morocco in its transition to a low-carbon, environmentally friendly and climate-resilient economy.”
ONCF CEO Mohamed Rabie Khlie added: “Following the certification of its first green bond operation in July, ONCF is pleased to take another step forward in its financing strategy with the implementation of this privileged partnership with the EIB. It is the first operation of its kind without a government guarantee. This vote of confidence from a respected international partner supports ONCF's strategic choices and confirms the strength of the Moroccan railway model. This operation also further consolidates ONCF's corporate social responsibility and sustainable development commitments.”
European Investment Bank (EIB)
The EIB has been a key partner for Morocco for 40 years. It finances the development and implementation of important projects in vital sectors of the Moroccan economy such as business support, agriculture, water and sanitation, education, health, transport and even renewable energy.
EIB Global is the EIB Group's new specialised arm dedicated to increasing the impact of international partnerships and development finance. It is designed to foster strong, focused partnership within Team Europe, alongside fellow development finance institutions, and civil society. EIB Global brings the Group closer to local people, companies and institutions through our offices across the world.
More information on the EIB's role in the transport sector across the world is available here.