€200 million EBRD financing to support OCP Group’s operations in Morocco
By Nibal Zgheib
The European Bank for Reconstruction and Development (EBRD) is providing a €200 million loan(US$210.8 million) to OCP Group, the world leader in plant nutrition solutions and phosphate-based fertilizers, aimed at strengthening water security through the development of new desalination facilities in Morocco.
The EBRD loan will finance the construction of two seawater desalination facilities for OCP Group, at its key industrial complexes in El Jadida (Jorf Lasfar) and Safi. These new facilities, with a capacity of approximately 35 million m3, will support the production of fertilizers essential for global food security, enabling OCP Group to meet the increasing demand for sustainable agricultural solutions.
Morocco experiences significant water stress, with annual water availability of only 790 m3 per capita (measures below 1,000 m3 per capita are conventionally considered a situation of chronic water scarcity), while the cities of El Jadida and Safi are located in a highly stressed catchment area where water demand exceeds 80 per cent of the available freshwater supply.
The new desalination facilities in El Jadida (Jorf Lasfar) and Safi will enable OCP Group to further reduce its use of freshwater for its water-intensive industrial processes. This shift is especially crucial as the region faces increasing droughts, allowing OCP Group to contribute to more sustainable water management in a highly strained environment.
These new facilities will also contribute to the reinforcement of water security in Morocco, by providing desalinated water for industrial use and preserving natural freshwater resources for local drinking water supplies.
This investment aligns with the EBRD’s Strategy for Morocco and its Green Economy Transition Approach 2021-2025.
“We are proud to support OCP Group’s Green Investment Programme and its drive towards sustainable industrial operations. This financing not only underscores EBRD’s commitment to addressing critical issues like water scarcity but also aligns with our broader mission to foster sustainable industrial solutions. Our partnership with OCP Group exemplifies our shared commitment to support its ambitious investment programme. We look forward to furthering this impactful collaboration, supporting Morocco’s journey toward a more sustainable future”, said President of the EBRD Odile Renaud Basso,.
OCP Group is committed to minimizing its water footprint by targeting a reduction of 3 million m3 in annual water consumption and sourcing 100 per cent of its water from non-conventional sources.
“We are pleased to partner with the EBRD to advance sustainable water management in our operations. Today’s collaboration highlights our commitment to addressing water scarcity and promoting resilience in Morocco and beyond. Sustainability is at the heart of our mission, and together with the EBRD, we are driving forward environmentally responsible solutions”, said Chairman and CEO of OCP Group Mostafa Terrab,.
Morocco, a founding member of the EBRD, has benefited from the Bank’s resources since 2012. To date, the EBRD has invested over €4.7 billion in Morocco through 105 projects.
