Morocco Ifahsa Pumped Hydropower Storage (PHS) Project (WB-P511426)

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
Chefchaouen (northern Morocco)
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
  • World Bank (WB)
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
A
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
Jul 1, 2026
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
Office National de l'Electricite et de l'Eau potable (ONEE)
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
  • Hydropower
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Grant, Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Loan Amount (USD)
$ 220.00 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.
Grant Amount (USD)
$ 280.00 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)
$ 550.00 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 @ WB website

Updated in EWS Oct 10, 2026

Disclosed by Bank Aug 14, 2025


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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.

According to the Bank’s website, the Project Development Objective is to enhance resilience of the Moroccan power system and enable increased integration of renewable energy generation.

The proposed Project will provide ancillary services to enhance the transmission system flexibility and enable higher integration of new wind and solar generation and will therefore enhance Morocco's energy security through more reliance on domestic energy resources.The proposed Project will finance the preparation, construction, and commissioning of the Ifahsa PHS plant with an expected capacity of 300 MW. The project is located 14 km from Chefchaouen in northern Morocco, near the Laou valley and south of Tetouan, the Ifahsa PHS plant will feature two reversible pump-turbine units of 150 MW each, operating with a maximum flow of 44 m3/s in turbine mode and 37 m3/s in pumping mode. During off-peak hours, the plant will use dispatched renewable electricity from the grid to pump water from the lower to the upper reservoir. During peak hours, it will generate electricity to meet the peak demand in the Morocco's grid system, by conveying the stored water from the upper to the lower reservoir through hydraulic turbines. the PHS plant will be connected by 400 kV transmission to the national grid.

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 environmental risk rating is considered high due to the proposed Project's location within the buffer zone of Talassemtane National Park (legally protected area), the construction of two storage infrastructures of around 800,000 m³ each, with facings reaching a height of 20 meters, which can be classified as "large dams." The construction also includes a 65 km power transmission line, part of which will cross the national park. The proposed Project involves generating and handling significant volumes of excavated material during the construction phase, using explosives for clearing work, and encountering two water sources along the pipeline route that connects the two basins. Additionally, the project's potential to disrupt local ecosystems and the need for appropriate mitigation measures and stringent environmental management practices further contribute to its high-risk rating. Social Safeguards (Substantial). The potential social risks include potential land acquisition, livelihood disruptions, and labor-related issues. Preliminary E&S assessment also indicates that the site involves collective, private, and state owned lands essential for local grazing.

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

Total Project Cost: US$ 500.00 million
IBRD Commitment: US$ 220.00 million
Grant Amount: US$ 280.00 million


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.

World Bank
Noreddine Citroen - Senior Energy Specialist
Lucine Flor Lominy - Senior Energy Specialist
Anas Benbarka - Lead Energy Specialist

Borrower/Client/Recipient
Office National de l'Électricité et de l'Eau potable (ONEE)

Implementing Agencies
Office National de l'Électricité et de l'Eau potable (ONEE)

ACCESS TO INFORMATION

To submit an information request for project information, you will have to create an account to access the Access to Information request form. You can learn more about this process at: https://www.worldbank.org/en/access-to-information/request-submission

ACCOUNTABILITY MECHANISM OF THE WORLD BANK

The World Bank Inspection Panel is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by a World Bank-financed project. If you submit a complaint to the Inspection Panel, they may investigate to assess whether the World Bank is following its own policies and procedures for preventing harm to people or the environment. You can contact the Inspection Panel or submit a complaint by emailing ipanel@worldbank.org. Information on how to file a complaint and a complaint request form are available at: https://www.inspectionpanel.org/how-to-file-complaint

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How it works