Spain commits €340 million to major desalination project in Morocco

Spain has pledged €340 million to support the construction of what is expected to become Africa’s largest desalination plant, according to Morocco World News.

The agreement was officially signed during a ceremony on Wednesday.

“This project addresses an urgent need while also highlighting the strong economic ties between Spain and Morocco, built on mutual trust and business collaboration,” said Spain’s Secretary of State for Trade, Amparo López Senovilla.

The funding comes in three components. The Fund for Business Internationalization (FIEM) will provide a €250 million loan to fund the design, construction, and operation of the plant. The Spanish Export Credit Insurance Company (CESCE) is providing an 80% loan guarantee for a €70 million financing component provided by Société Générale and the Foreign Investment Fund (FIEX) will provide €31 million to help the Spanish company Acciona invest in the project.

Located in the Casablanca region, the new facility aims to supply clean drinking water to approximately 7.5 million people by 2028. Upon completion, it is expected to produce around 300 million cubic meters of water annually.

The initiative is a collaboration between Moroccan firms Green of Africa and Afriquia Gaz, and Acciona, a company recognized for its expertise in large-scale infrastructure and renewable energy. Acciona previously developed the Torreviejadesalination plant in southeastern Spain, which is currently the largest in Europe.

The Casablanca plant will operate under a 30-year public-private partnership. The agreement includes a three-year construction phase followed by 27 years of operation and maintenance.

Morocco continues to face mounting water scarcity due to climate change and repeated droughts, which have had serious effects on agriculture, drinking water availability, and the broader economy. In response, the country has prioritized desalination technology, a strategy increasingly adopted by nations such as Israel, Spain, Australia, and China.