Morocco - OCP Corporate Loan III (AFDB-P-MA-BB0-005)

Regions
  • Middle East and North Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • Morocco
Geographic location where the impacts of the investment may be experienced.
Specific Location
Safi, El Jadida, Jorf
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • African Development Bank (AFDB)
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
B
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
Sep 20, 2023
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
OCP S.A.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Energy
  • Industry and Trade
  • Mining
  • Water and Sanitation
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)
$ 151.32 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.
Loan Amount (USD)
$ 151.32 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.
Project Cost (USD)
$ 302.65 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.
Primary Source

Original disclosure @ AFDB website

Updated in EWS Mar 5, 2024


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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.

As stated by the AfDB, the project aims to meet OCP's industrial needs (35 million m3 for the Safi and Jorf sites). It will provide potable water and new irrigation capacities to the cities of Safi and El Jadida and deliver up to 75 million m3 of drinking water for the local population, estimated at 1.5 million.

This operation concerns the Corporate loan to OCP SA as part of its Green Investment Program (GIP). The project entails the construction of three modular seawater desalination plants with a total annual capacity of 110 million cubic metres, entirely powered by renewable energy. The project is an essential component of the Green Investment Program and forms part of the Moroccan Government's Emergency Drinking Water Supply Plan.

The expected development outcomes are:
i) additional household incomes from support for job creation and increased drinking water supply;
ii) private sector development through improved market resilience and sustainability, local linkages, training and capacity building; and
iii) social and gender-equality outcomes achieved through support for vulnerable groups and the promotion of gender equality and women's economic empowerment.

In addition to ensuring the autonomy of OCP Group's industrial and mining sites in terms of unconventional water, the cities of Safi and El Jadida and the areas around OCP's Safi and Jorf plants will benefit from drinking water from the project (up to 75 million m3 of drinking water for a local population estimated at 1.5 million).

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.

The AfDB categorized the project risks as follows -
Environmental Category: IF-B

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

As stated on the company's website, OCP S.A. was founded in 1920 as the Office Chérifien des Phosphates to mine phosphate in Morocco.
OCP began phosphate production in March 1921 in Khouribga, with exports via the port at Casablanca later that year. A second mine opened in Youssoufia in 1931, and a third in Benguerir in 1976. The company also diversified into phosphate processing, opening chemical facilities in Safi (1965) and Jorf Lasfar (1984).
In 2008, the company became the OCP Group S.A., owned by the Moroccan Government and the Banque Populaire du Maroc.
In both 2018 and 2019, the company generated a revenue of over 54 billion MAD (over US$5.6 billion).

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - OCP Group Client Mining

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.

AfDB Team Leader:

Christelle N'Guessan-N'Gbeingne
Email: c.g.nguessan@afdb.org

Client - OCP S.A.:

Address (Headquarters): Boulevard Al Abtal, BP 5196 - Casablanca, Morocco
Website: https://www.ocpgroup.ma/

ACCESS TO INFORMATION

You can submit an information request for project information at: https://www.afdb.org/en/disclosure-and-access-to-information/request-for-documents. Under the AfDBÕs Disclosure and Access to Information policy, if you feel the Bank has omitted to publish information or your request for information is unreasonably denied, you can file an appeal at https://www.afdb.org/en/disclosure-and-access-to-information/appeals-process 

ACCOUNTABILITY MECHANISM OF AfDB

The Independent Review Mechanism (IRM), which is administered by the Compliance Review and Mediation Unit (CRMU), is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an African Development Bank (AfDB)-financed project. If you submit a complaint to the IRM, it may assist you by either seeking to address your problems by facilitating a dispute resolution dialogue between you and those implementing the project and/or investigating whether the AfDB complied with its policies to prevent environmental and social harms. You can submit a complaint electronically by emailing crmuinfo@afdb.org, b.kargougou@afdb.org, b.fall@afdb.org, and/or s.toure@afdb.org. You can learn more about the IRM and how to file a complaint at: https://www.afdb.org/en/independent-review-mechanism/ 

How it works

How it works