MOROCCO · WATER
Key Facts
- —The country Morocco is a North African kingdom and a free trade partner of the United States, with a long record of drought.
- —What happened The European Union’s lending arm lists a proposed Morocco water loan of 130 million euros (about US$146 million) for the state utility ONEE.
- —The project It would help pay for drinking water production works with a total cost of about 262 million euros (about US$294 million).
- —The status The project is still under appraisal, and the bank published its summary sheet on Tuesday 13 October 2026; no loan has been signed.
- —The goal More treated water of better quality, and less electricity burned for each cubic metre produced and delivered.
- —What it means for you Water supply shapes Moroccan farm exports, tourism and growth, and European lenders are now lining up behind the state utility.
- —Still open The interest rate, the term, the sites and the signing date have not been published.
The European Investment Bank is weighing a Morocco water loan of 130 million euros (about US$146 million) for the state utility ONEE. The bank listed it on Tuesday 13 October 2026, and the business daily LesEco.ma reported it on Tuesday 20 October.
For US readers, the Morocco water loan shows European lenders moving to secure water supply in a US trade partner and farm exporter. The project is still under appraisal, so nothing is signed.
What the European Investment Bank Has Listed
The European Investment Bank, owned by the European Union’s member states, lends money for public projects at home and abroad. Its sheet shows a Morocco water loan of about 130 million euros (about US$146 million) in a project costing 262 million euros (about US$294 million).
The promoter is ONEE, the Office National de l’Électricité et de l’Eau Potable, which produces and sells drinking water and electricity across Morocco. The sheet says the project is under appraisal, the stage before the bank’s board approves any loan.
What the Money Would Buy
The sheet says the Morocco water loan would reinforce drinking water production and raise the efficiency of ONEE’s plants. The aim is more treated water, of better quality, for users across the country.
A second goal is energy efficiency in producing and delivering the water, which LesEco.ma describes as using less electricity per cubic metre. The bank says some of the works may need an environmental and social impact study before they go ahead.
The Next Slice of a Longer Programme
The new proposal is called AEP3 Tranches B and C, after an earlier slice signed on 22 May 2025. That first tranche was a loan of 70 million euros (about US$79 million) in a project costing 140 million euros (about US$157 million).
The first loan backed ONEE’s 2025 to 2030 equipment plan, which its board approved on 21 April 2025. The new Morocco water loan would nearly double the bank’s support for the same programme.
Europe’s Growing Bet on ONEE
On 28 July 2026 the European Bank for Reconstruction and Development, a separate multinational lender, announced 250 million euros (about US$281 million) for ONEE. It was its first Morocco loan backed by Tamwilcom, the national credit guarantee institution.
The deal, split into committed and uncommitted parts, is covered in this report on the EBRD water security loan. Together, the two European banks could put hundreds of millions of dollars into the same state utility.
Why Water Is a Pressure Point
Morocco has endured years of drought that cut harvests and slowed growth. The ministry’s water platform Maadialna put national dam reservoirs at 65.7 percent full on 12 October 2026, which is about 11.1 billion cubic metres.
Even so, the state is building 14 large dams, detailed in this report on Morocco’s dam programme. Dams store rain, but treatment plants decide how much of it reaches taps, which is where the new money would work.
What It Means for US Readers
Morocco has had a free trade agreement with the United States since 2006, so its water security matters to American exporters and bondholders. Farm exports such as citrus and tomatoes, which depend on irrigation, feel any shortage first.
Morocco will also co-host the 2030 men’s World Cup with Spain and Portugal, which will bring large crowds to its cities. For now, European banks rather than American ones are the main outside financiers of its water works.
What Is Not Known
The sheet gives no interest rate, repayment term or signing date for the proposed loan. It does not say which towns, plants or pipelines would benefit, or how much extra water the works would deliver.
The sheet names no lender for the other 132 million euros (about US$148 million) of the project cost. The bank’s guarantee cover also depends on the availability of European Union funds set aside for the southern neighbourhood.
More: Morocco news in English, every day from The Rio Times.
Frequently Asked Questions
How big is the proposed Morocco water loan?
The bank lists a Morocco water loan of 130 million euros (about US$146 million) for ONEE. The total project cost is about 262 million euros (about US$294 million).
Who would receive the Morocco water loan?
The borrower would be ONEE, the state office for electricity and drinking water. It produces and transports drinking water across the kingdom.
Has the loan been approved or signed?
No. The bank’s sheet, published on 13 October 2026, shows the project under appraisal, and the bank board has not approved it.
What would the money pay for?
It would pay for stronger and more efficient drinking water production, with better quality and less energy used per cubic metre. The sites have not been named.
Is this the first European loan to ONEE for water?
No. The EIB signed 70 million euros (about US$79 million) in 2025, and the EBRD announced 250 million euros (about US$281 million) in 2026.
Sources: European Investment Bank, project sheet ONEE Production Eau Potable AEP3 Tranches B & C, 13 October 2026; LesEco.ma, Eau potable : la BEI envisage un prêt de 130 millions d’euros à l’ONEE, 20 October 2026; European Investment Bank, project sheet ONEE Production Eau Potable III AEP3 Tranche A, 8 May 2025; EBRD, EBRD and ONEE strengthen water security in Morocco, 28 July 2026; Maadialna, Ministry of Equipment and Water, 12 October 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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