The International Finance Corporation (IFC) has approved a $110 million loan to Morocco’s OCP Group to support the completion of a major desalinated water pipeline project.
The pipeline, which will connect Jorf Lasfar to Khouribga, spans 219 kilometers and will play a key role in securing a sustainable water supply for OCP’s operations and local communities. Construction is advancing and is expected to be finalised soon.
The new infrastructure will transport desalinated water from OCP’s existing and upcoming plants in Jorf Lasfar to production sites in Khouribga, central Morocco.
The pipeline is set to have an annual capacity of 80 million cubic meters, ensuring a reliable water source for OCP’s fertilizer production and supporting farmers and households in the region.
In a joint statement released on September 13, IFC and OCP Group pointed out the project’s importance in addressing water scarcity.
“By securing a reliable source of desalinated water, we not only ensure the growth of our operations but also provide essential resources to local communities,” said OCP Group Chairman and CEO, Mostafa Terrab.
Terrab also highlighted how the project aligns with the company’s commitment to sustainable development and resilience across Africa.
IFC Managing Director Makhtar Diop lauded the project, noting that OCP Group’s innovative strategy exemplifies how companies can effectively address intricate development challenges.
“Water scarcity is a major obstacle to economic development in Africa – and this innovative project by OCP Group demonstrates how businesses can develop solutions that tackle complex development challenges,” said Makhtar Diop, IFC’s Managing Director.
“By supporting the construction of this pipeline, IFC is enabling OCP Group to not only address its own water needs but provide vital water resources to communities and support the production of high-value crops, contributing to a more resilient and food-secure future for Africa.”
The pipeline is part of OCP Group’s broader water program, managed by its subsidiary, OCP Green Water.
The project aims to ensure 100% reliance on non-conventional water sources, such as desalinated water, by the end of 2024.
By 2027, OCP plans to invest $611 million to achieve a desalination capacity of 560 million cubic meters per year, with an additional 60 million cubic meters of treated wastewater.
The efforts are intended to not only sustain OCP’s industrial needs but also to provide excess water to local communities, helping them adapt to the impacts of climate change.
The pipeline is also aligned with Morocco’s sustainability goals and the World Bank’s climate strategy for the region.
By 2030, the pipeline is expected to be fully powered by renewable energy, further strengthening resilience against climate shocks.
OCP Group has recently unveiled a green investment strategy aimed at expanding fertiliser production and advancing renewable energy initiatives.
With over a century of expertise and revenue surpassing $9 billion in 2023, OCP Group, headquartered in Morocco and operating across five continents, is a major global provider of plant nutrition solutions and phosphate-based fertilisers, employing over 17,000 professionals and partnering with more than 350 clients worldwide.
Morocco is working actively to tackle severe water stress, affecting agricultural production and impacting the country’s economic development. This project will provide OCP Group with a sustainable and reliable source of water and will free up water for use by farmers, businesses, and consumers in and around Khouribga.
The project also supports IFC’s country strategy for Morocco, which focuses on enabling investments that contribute to the scaling of sustainable infrastructure and promoting green and inclusive growth.
For more than 60 years, IFC, a member of the World Bank Group, has worked with public and private sector partners to support small businesses, manufacturers, agribusinesses, infrastructure, the financial sector, and more in Morocco.
In the past three fiscal years, IFC has invested and mobilised more than $1 billion to support sustainable economic development.
