(Ecofin Agency) - • Spain will fund Casablanca’s seawater desalination plant with $381 million in financing
• The plant will supply drinking water to over 6.7 million people and irrigate 5,000 hectares
• Full capacity expected by 2028, making it the largest desalination plant in Africa

Spain has committed $381 million to help finance the construction of a major seawater desalination plant in Casablanca. The announcement was made on May 7 by Spain’s Secretary of State for Trade, Amparo López Senovilla, during an official visit to Morocco.

“This project not only responds to a vital need, but also symbolizes the excellence of economic relations between Spain and Morocco, based on trust and business cooperation,” said López Senovilla during the signing ceremony of the financing agreement.

The Casablanca desalination plant is expected to cost a total of €800 million. Construction is already underway and is being led by a consortium that includes the Spanish construction firm Acciona, as well as Moroccan companies Afriquia Gaz and Green of Africa, both owned by billionaire businessman Aziz Akhannouch.

Spain’s financial support includes a €250 million loan from the Fund for the Internationalization of Enterprises (FIEM), partial financing of Acciona’s stake in the project company, and export credit insurance provided by the Spanish Export Credit Agency (CESCE).

Once operational, the facility will produce 548,000 cubic meters of treated water per day by February 2027. A second phase, scheduled for completion in August 2028, will add another 274,000 cubic meters per day. That will bring the total annual output to nearly 300 million cubic meters.

Touted as the largest desalination plant in Africa, the facility is designed to secure the drinking water supply for Casablanca and nearby regions including Berrechid-Settat and El Jadida-Azemmour. It will also provide water for the irrigation of more than 5,000 hectares of farmland. Altogether, the plant will serve a population estimated at 6.7 million people.

Morocco has ambitious plans to expand its desalination capacity. By 2030, the country aims to produce 1.7 billion cubic meters of potable water annually from about 20 seawater desalination plants, up from the current capacity of roughly 320 million cubic meters.