Africa Growing Together Fund provides EUR 43.36 million loan for Water Access Sustainability and Security Project (PPSAE) (Linked to Umbrella Project ID#36104)

On May 22, 2014, the African Development Bank (AfDB) and the People's Bank of China (PBOC) signed an agreement for the Africa Growing Together Fund (AGTF) (see Umbrella Project ID#36104). The purpose of this $2 billion loan facility was to finance large development projects in Africa between 2014 and 2024. The AGTF is sponsored by the PBOC and the administered by AfDB. Then, on December 21, 2018, AGTF signed an EUR 43,360,000 loan agreement (ID#5050200000701) with the Government of Morocco for the Water Access Sustainability and Security Project (PPSAE). On the same day, the African Development Bank issued an EUR 79.33 million loan (ID#2000200003202) to the Government of Morocco for the PPSAE. The borrowing terms of the AGTF loan were as follows: a 22-year maturity, a 7-year grace period, an interest rate of 6-month EURIBOR plus a 0.9% margin, a 0.25% commitment fee, and a 0.25% upfront (management) fee. The first AfDB and AGTF loan disbursements took place on July 31, 2019. As of June 2021, the AGTF loan had achieved a disbursement rate of 34.4% (EUR 14,897,964.65 out of EUR 43,360,000). The main goal of the Water Access Sustainability and Security Project (PPSAE) is to secure access to drinking water in the Guercif, Zagora, Al Hoceima, Tangier and Béni Mellal provinces. The project design was based on the priority needs identified by ONEE-BO (ONEE Water Branch) under its 2016-2020 investment programme. The area includes all these regions’ urban and rural agglomerations witnessing a significant industrial boom, in view of the new 'Mohammed VI Tangier Tech' City in Tangier, the Tadla Agropole Project at Béni Mellal, as well as other industrial and agro-industrial zones in El Hoceima and Béni Mellal. The main project components include (1) Conveyance along the river between the existing 'Ibn Battouta' dam and the 'Mharhar' water treatment plant in Tangier; (2) Conveyance from the projected dam over OuedGhiss to the existing El Hoceima treatment plant; (3) Conveyance from the proposed Targa Ou Madi dam to the Guercif treatment plant; and (4) Conveyance from the proposed 'Agdez' dam to the Zagora treatment plant. A contract for the Consulting Engineer for the coordination, supervision and control of project works was approved on December 14, 2018, and a service order for the start of his mission was notified on January 7, 2019, i.e., before the effective project implementation start date of July 31, 2019. A provisional schedule of works and compensation related to the PPSAE project was sent to the AFDB on April 2, 2019. By March 2022, the project had achieved a 30% physical completion rate. The project was originally expected to reach completion by the end of 2023.

Additional details

1. The AfDB project identification number is P-MA-E00-011. 2. The all-in interest rate (.659%) was calculated by adding a 0.9% margin to average 6-month EURIBOR in December 2018 (-0.241%). 3. The margin of 0.9% is calculated by adding the Funding Cost Margin (unknown) to the Lending Margin (0.8%%) and the Maturity Premium (0.1%).

Number of official sources

7

Number of total sources

9