BMCE Bank has acted as the sole lender supporting a consortium composed of Abengoa Water and InfraMaroc on the financing of a desalination plant in the Moroccan city Agadir.
Global law firm White & Case LLP has advised BMCE on financing for the project. The total investment is estimated at €82 million (US$111.5 million).
Financed under an innovative public-private partnership (PPP) scheme, the project is the first delegated management contract of this importance in Morocco under the law 54-05, and also the first for the production of drinking water which will contribute to the major development taking place in Greater Agadir, particularly in the tourism, agrifood and industrial sectors.
On May 30 2014 ONEE, the Moroccan National Electricity and Drinking Water Office, and the Société d'Eau Dessalée d'Agadir, the project company specially created by the winning consortium, signed the contract which covers the financing, design, construction and operation of the desalination plant.
Abengoa will be responsible for the design, technology and construction of the plant, as well as its subsequent maintenance and operation for a 20 year period.
The facilities will be able to supply 100,000 m3 of drinking water every day to the inhabitants of Greater Agadir, contributing to the major development taking place in this region, especially in the tourism, agrifood and industrial sectors.
The Agadir desalination project is part of Abengoa's strategic plan to solve supply problems in those parts of the world that are most affected by water shortages, such as North Africa. This project will increase Abengoa's total desalination capacity to nearly 1,400 M m3/day.