IFC contributes a €100 million loan to OCP Group’s desalinated water pipeline project

IFC has granted a €100 million loan to OCP Group, contributing thus to complete the desalinated water pipeline to connect Jorf Lasfar to Khouribga, whose construction is progressing well and is expected to be completed soon.

The loan will support the construction of a 219 km pipeline and a new pumping station The infrastructure will transport desalinated water from OCP Group’s existing and planned desalination plants in Jorf Lasfar to the production sites in Khouribga, central Morocco.

“In order to increase sustainable water supply for fertilizer production, farmers, and households in Morocco, IFC announced today a €100 million loan (approximately $108 million) to OCP Group, a global leader in plant nutrition solutions and phosphate fertilizers,” stated a joint press release from the two entities, published on Friday, September 13 in Washington.

This pipeline will have a total annual capacity of 80 million cubic meters, according to the statement, which explained that the project will provide OCP Group with a sustainable and reliable water source while freeing up water for farmers, businesses, and consumers in Khouribga and surrounding areas. “This project demonstrates OCP Group’s commitment to sustainable development and innovation,” OCP Chairman and CEO, Mostafa Terrab, was quoted in the press release as saying.

“By securing a reliable source of desalinated water, we are not only enabling the continued growth of our operations but also providing essential resources to local communities,” he added, noting that this initiative aligns perfectly with the Group’s vision of strengthening resilience and food security across Africa.

For his part, IFC’s Managing Director, Makhtar Diop, stated that “this innovative project by OCP Group shows how companies can develop solutions to address complex development challenges.”

By supporting the construction of this pipeline, IFC allows OCP Group to meet its own water needs, provide vital water resources to communities, and support the production of high-value crops, “thus contributing to a more resilient and food-secure future for Africa,” highlighted Makhtar Diop.

The pipeline is part of OCP Group’s water program, implemented by its specialized subsidiary, OCP Green Water, which aims to supply the Group with 100% non-conventional water by the end of 2024, according to the press release. By 2027, through investments totaling $611 million, OCP Group plans to achieve a production capacity of 560 million m³/year of desalinated water and 60 million m³/year of treated wastewater.

Combined with new technologies to reduce the water needs of the world’s number one phosphate producer, this will not only ensure the supply for its industrial operations but also provide excess capacity to local communities, thereby strengthening their resilience to climate change.

While supporting Morocco’s priority of sustainable development, the project aligns with the World Bank’s strategy in Morocco, which focuses particularly on climate. By 2030, the pipeline is expected to be fully powered by renewable sources, improving access to sustainable water resources and enhancing resilience to climate shocks.