The European Bank for Reconstruction and Development (EBRD) has approved about US$162 million in new financing for Morocco’s flagship Saïss Water Conservation Programme, as the country steps up efforts to address water scarcity and climate stress in one of its most drought-prone regions.
The funding 150 million euros (US$162 million) will finance the final phase of the project, which aims to replace unsustainable groundwater extraction with surface water irrigation across the Saïss plain in central Morocco.
The loan agreement was signed during a two-day visit to Morocco by a senior EBRD delegation led by First Vice President Greg Guyett, accompanied by Vice President for Banking Matteo Patrone. Meetings were held in Casablanca on December 11–12 with government officials and financial partners.
The agreement was signed by Guyett and Morocco’s Minister Delegate for the Budget, Fouzi Lekjaa, in the presence of Agriculture Minister Ahmed El Bouari.
A strategic water project
The Saïss project will fund the construction of a large-scale water distribution network designed to irrigate 20,000 hectares of farmland in the Fez-Meknes region, an area heavily dependent on agriculture but increasingly affected by prolonged droughts and falling groundwater levels.
The initiative will channel between 90 million and 120 million cubic metres of water annually from the M’Dez dam to the Saïss plain, replacing intensive groundwater pumping that has severely depleted aquifers over recent decades.
“This project is central to Morocco’s efforts to secure water resources, support farmers and adapt to climate change,” the EBRD said.
Final phase of a long-term programme
The latest financing represents the third and final phase of the Saïss Water Conservation Programme, bringing the total project cost to 252 million euros (US$272 million).
Earlier financing rounds were approved in 2017 and 2020, with additional support provided by the European Union and the Green Climate Fund.
The United Kingdom has also contributed a US$7.5 million grant through the EBRD’s High-Impact Partnership for Climate Action multi-donor fund. In addition, the EBRD has provided a 5 million euro investment grant (US$5.4 million) and 500,000 euros (US$540,000) in technical assistance.
The programme is seen as a model for large-scale climate adaptation infrastructure in water-stressed economies.
Broader engagement in Morocco
During the visit, the EBRD also announced a 50 million euro (about US$54 million) green financing package with Crédit du Maroc, combining funding from several international partners, including the Green Climate Fund, the European Union and Canada.
The package is aimed at supporting green investments across multiple sectors, including energy efficiency, renewable energy and climate-resilient business activities.
Guyett was accompanied by Mark Davis, EBRD Managing Director for the Southern and Eastern Mediterranean, and Haytham Eissa, Head of the bank’s operations in Morocco.
Water stress and climate risks
Morocco is among the countries most exposed to climate change in the Mediterranean region, facing recurrent droughts, declining rainfall and mounting pressure on water resources.
Agriculture, which employs a large share of the population and contributes significantly to exports, has been particularly affected by water shortages, prompting authorities to prioritise irrigation efficiency and sustainable water management.
The Saïss plain has long relied on groundwater extraction to sustain intensive farming, leading to falling water tables and rising pumping costs. By shifting irrigation to surface water supplied through modern infrastructure, the programme aims to protect aquifers while stabilising agricultural output.
EBRD’s role
The EBRD has been active in Morocco since 2012, investing in infrastructure, energy, water, finance and private-sector development. The bank has positioned climate resilience and water security as core priorities in its engagement with the country.
Officials said the Saïss project demonstrates how large-scale public investment, backed by international finance, can deliver long-term environmental and economic benefits.
The final phase is expected to be completed over the coming years, consolidating one of Morocco’s most ambitious water conservation efforts as climate pressures intensify across North Africa.
