Release date: 24 April 2024
Promoter – Financial Intermediary
ROYAUME DU MAROCLocation
Description
The loan will finance a number of multi-sector infrastructure projects under Morocco's post-earthquake reconstruction programme.
Additionality and Impact
In September 2023, Morocco was struck by one of the most powerful earthquakes in its history. These areas faced specific geographic and development challenges, which made the reconstruction effort particularly important. The timely implementation of the reconstruction process post-disaster is paramount for reinstituting basic services and resuming economic activity in the affected areas. The Project will contribute, alongside national efforts and other partners, to financing multi-sector infrastructure components of Morocco's post-earthquake reconstruction programme through a sovereign loan to the Kingdom of Morocco. Specifically, the EIB loan will finance the rehabilitation of schools, roads, and hospitals in six affected provinces in the Atlas region.
The Project addresses the need for post-disaster re-establishment and subsequent reinforcement of the provision of public services in the area of education, health and transport, consistent with the role that major IFIs have on ensuring improved living conditions and standards, a safer and cleaner environment, and support to sustainable economic development.
The reconstructed and newly build infrastructure will follow higher seismic standards than was required in the region before the earthquake and will be more energy efficient and resilient to climate change. Apart from the initial emergency measures, the construction of schools and health centres will include energy efficiency measures and the use of renewable energies and the road infrastructure will be designed taking into account climate adaptation and road safety considerations to withstand future natural disasters, ensuring long-term durability and safety.
The EIB's proposed financing complements the EU's intervention program for Morocco's reconstruction program. The Framework Loan is aligned with the multiple objectives of the EU's New Agenda for the Mediterranean, more specifically ecological transition (climate resilience), human development and migration and mobility. The Project is aligned with the country's priorities as it contributes to the financing of the national "Integrated programme for the reconstruction and comprehensive upgrade of the disaster areas".
The loan has distinctive features, including the ability to finance up to 100% of projects in post-disaster areas, a 30-year maturity, and a long grace period. Technical assistance was also provided, enhancing the project's overall structure and its components.
Objectives
The objectives are: (i) to restore and improve the population living conditions; (ii) to strengthen resilience of cities to climate change and other natural disasters, by (re)constructing resilient and sustainable infrastructure.
Sector(s)
- Transport - Transportation and storage
- Education - Education
- Health - Human health and social work activities
Under Global Europe NDICI guarantee
Under EFSD+ Guarantee
Proposed EIB finance (Approximate amount)
EUR 1000 million
Total cost (Approximate amount)
EUR 1732 million
Environmental aspects
A project with similar characteristics within the EU would be classified in Annex II of Environmental Impact Assessment (EIA) Directive 2011/92/EU (amended by Directive 2014/52/EU), which would require a decision by the competent authority making an EIA mandatory or not. Education and health infrastructure as planned at this stage is not specifically mentioned in the EU EIA Directive and therefore EU Member States are not required to have one. However, the investments could be covered by Annex II of the EIA Directive if they are classified as urban development operations. The need for EIAs, particularly for roads, will be considered during appraisal.
Procurement
The project promoters will have to ensure that all the related tendering processes will be done in accordance with the Bank's Guide to Procurement.
Status
Signed - 1/10/2024