Morocco has secured up to €250 million in financing from the European Bank for Reconstruction and Development (EBRD) to modernize the National Office of Electricity and Drinking Water (ONEE) infrastructure through 2030. This initiative prioritizes reducing water loss and improving energy efficiency to combat chronic drought and rising demand, according to the EBRD.
How does the ONEE-EBRD deal address water scarcity?
The program targets “non-revenue water”—the volume lost to leaks, theft, or faulty metering before reaching the tap. By deploying smart metering, advanced leak detection, and rehabilitating aging distribution networks, ONEE aims to stabilize supply without immediately needing new, capital-intensive dams. According to the EBRD, this efficiency-first strategy is often more cost-effective than expanding raw water extraction in climate-stressed regions.
Non-revenue water accounts for a significant percentage of total supply in many developing utility networks. Reducing these losses by just 10% can be equivalent to building a medium-sized reservoir in terms of available supply.
Why is energy efficiency a priority for water utilities?
Water distribution is energy-intensive, particularly in Morocco where geography requires pumping water over long distances or high elevations. The EBRD financing supports the installation of high-efficiency pumps and SCADA (Supervisory Control and Data Acquisition) systems to monitor real-time pressure. Lowering electricity consumption reduces the operational carbon footprint of the utility and strengthens its financial health, allowing for reinvestment, the EBRD reports.
What are the long-term trends in African water infrastructure?
The ONEE-EBRD deal reflects a shift toward performance-based financing rather than simple capacity expansion. Multilateral lenders are increasingly prioritizing digital integration, such as data-driven asset management and smart grids. This creates a growing market for private-sector providers of leak-detection technology and automated billing systems. According to industry data, utilities that modernize their digital infrastructure are better positioned to secure international climate resilience funding compared to those relying on legacy manual systems.
For municipalities facing similar water stress, the most immediate ROI often comes from “commercial loss” reduction—improving billing accuracy and meter reading—before moving to expensive physical pipe replacement.
Frequently Asked Questions
What is non-revenue water?
It is water that has been produced and is “lost” before it reaches the customer. This happens through pipe leaks, metering inaccuracies, or unauthorized connections.
How does SCADA help with water management?
SCADA systems provide centralized, real-time control and monitoring of water networks. It allows operators to detect pressure drops that indicate a burst pipe before the loss becomes catastrophic.
Is this funding for new dams?
No. The EBRD financing is explicitly focused on optimizing existing infrastructure, improving energy efficiency, and reducing water waste rather than constructing new large-scale reservoirs.
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