Early Warning System

Countries

Morocco

Geographic location where the impacts of the investment may be experienced.

Financial Institutions

European Bank for Reconstruction and Development (EBRD)

International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.

Project Status

Approved

Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.

Bank Risk Rating

Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."

Voting Date

Feb 27, 2024

Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.

Borrower

PROCANEQ Marocco

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

Mining

The service or industry focus of the investment. A project can have several sectors.

Investment Type(s)

Loan

The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.

Investment Amount (USD)

$ 14.92 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Currency conversion note:
Bank reported 13.76
Converted using 2024-02-27 exchange rate.

Project Cost (USD)

$ 33.67 million

Bank Documents

Translation: DFF - PROCANEQ (Arabic)

Primary Source

Original disclosure @ EBRD website

Updated in EWS Apr 12, 2024

Disclosed by Bank Mar 6, 2024

Contribute Information
Can you contribute information about this project?
Contact the EWS Team

Project Description

If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the project consists of the provision of up to MAD 150m (ca. EUR 13.6m equivalent) senior loan in favour of PROCANEQ to finance the purchase of new equipment for the extraction and transport of phosphate ore into the processing facilities in 3 phosphate mines, owned and operated by Office Cherifien des Phosphates ("OCP"), one of the world's largest producers of phosphate. The new equipment to be financed by the Bank will be more energy efficient using less diesel, therefore achieving lower GHG emissions.

The project will support the Company's strategic plan, which aims to i) replace the existing equipment with more energy efficient one that is utilizing less diesel hence decreasing GHG emissions; ii) conduct exploration activities on three additional mines for OCP; iii) create more jobs in the sector by doubling its work force to more than 440 people; and iv) increase reporting quality and disclosures by adopting IFRS using the Bank's technical assistance.

Early Warning System Project Analysis

For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

Category B (2019) and considered high-medium risk. The project involves providing mining services (excavating and hauling waste rock and phosphate onsite to the crushing operations) and equipment to the owner/licence holder for several large currently operating (ie, brownfield) phosphate mines. The area around the mines has a long history of mining and mine rehabilitation in these areas is not completed to international standards. There are no complex operations performed on these sites, only the physical extraction, crushing, beneficiation and transportation of phosphate rock to offsite locations for further processing or shipping.

Investment Description

Here you can find a list of individual development financial institutions that finance the project.

European Bank for Reconstruction and Development (EBRD)

EBRD Finance Summary

EUR 13,765,139.01

An up to MAD 150m (ca. EUR 13.6m equivalent) senior loan in favour of PROCANEQ.

Total Project Cost

EUR 31,069,985.69

The total project cost is ca. EUR 30.4m to be financed along with BMCI (BNP Paribas Moroccan subsidiary) which are participating through a parallel loan for an equal amount up to ca. EUR 13.6m (MAD 150.0m). The remainder of ca. EUR 3.2m will be covered by the Company's own funds.

Private Actors Description

A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

PROCANEQ Maroc is a subsidiary of PROCAN Group, a company serving the mining industry. Established in 2016 and based in Morocco, PROCANEQ has been providing mining subcontracting services for OCP SA (a world leader in the mining industry with 40 Mt of phosphate rock produced) since 2018.

Private Actor 1	Private Actor 1 Role	Private Actor 1 Sector	Relation	Private Actor 2	Private Actor 2 Role	Private Actor 2 Sector
-	-	-	-	PROCANEQ Maroc	Client	-

Contact Information

This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

COMPANY CONTACT INFORMATION

Najlae El Maslouhi
nelmaslouhi@procangr.com
+212661856756
https://www.procaneq.com
4 rue Ibnou Jabir, Casablanca 20000, Morocco

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html