The International Finance Corporation (IFC) announced on Friday a EUR 100 million loan (approximately USD 108 million) to Morocco’s phosphate giant OCP Group. The loan will fund the construction of a 219-kilometer water pipeline in Morocco, aimed at securing sustainable water supplies for fertilizer production, agriculture, and local communities.
Currently under construction, the pipeline will transport desalinated water from OCP’s facilities in Jorf Lasfar on the Atlantic coast to its operations in Khouribga, located in central Morocco.
Once completed, it will have the capacity to transport 80 million cubic meters of water annually – enough to fill more than 32,000 Olympic-sized swimming pools.
The initiative is part of broader efforts to fight against water shortage in Morocco. OCP’s project is designed to relieve the pressure on local water resources, making more water available for farmers, businesses, and households in the Khouribga region.
“We are grateful for IFC’s support in addressing one of the most pressing challenges of our time—water scarcity,” said Mostafa Terrab, Chairman and CEO of OCP Group.
“This project demonstrates our commitment to sustainable development and innovation,” he explained adding that “securing desalinated water will not only allow us to grow our operations but also provide essential resources to local communities, contributing to resilience and food security across Africa.”
Meanwhile, Makhtar Diop, Managing Director of IFC, lauded the project for tackling complex development challenges in Africa.
“Water scarcity is a significant barrier to economic development in many parts of Africa, and this project exemplifies how businesses can deliver impactful solutions,” Diop explained. “Supporting OCP’s water pipeline aligns with IFC’s climate priorities, helping both industry and local communities access much-needed water resources.”
The new pipeline is a part of OCP Group’s broader Water Program, led by its subsidiary, OCP Green Water.
By the end of 2024, OCP aims to rely entirely on non-conventional water sources, including desalinated and treated wastewater, for its operations. By 2027, the company plans to increase its desalinated water capacity to 560 million cubic meters annually, while also providing 60 million cubic meters of treated wastewater.
The efforts will not only meet OCP’s industrial water demands but also provide excess capacity for surrounding communities, bolstering their resilience to climate change.
The project also aligns with Morocco’s national goals for sustainable development and the World Bank Group’s strategy to address climate challenges. By 2030, the pipeline is expected to be powered entirely by renewable energy sources, further enhancing its sustainability.