Morocco - Subcontracting project with commercial risk for the management of water supply networks in rural areas

Project Summary

Approval Date 22 Oct 2015
Signature Date 12 Aug 2016
Planned Completion Date 31 Dec 2023
Sovereign / Non-Sovereign Sovereign
Sector Water Supply & Sanitation
DAC Sector Code 14010
Environmental Category 3
Commitment U.A 968,264.99
Status Implementation

Project General Description

The pilot project of sub-contracting with commercial risk of drinking water supply in rural areas is part of Morocco's national policies and strategic frameworks for the generalization of access to drinking water and poverty reduction in a rural area. It consists in increasing access to drinking water through the involvement of small and medium-sized enterprises in the operation and maintenance of drinking water supply works and in the extension of rural distribution networks. Private companies will be responsible for 10 years of extension and connection work, 5 to 6 water supply systems, and subscriber management. For the operation part of the service, they will be remunerated on the basis of a price per cubic meters of water invoiced and paid by the users. This management method encourages the company (i) to make individual connections as quickly as possible in order to increase water sales and (ii) to optimize the operating costs of the structures. For this pilot phase, three geographical perimeters of El Borouj (Settat region), Safi Ouest (Safi region) and Larache (Tangier-Tetouan region), counting in 2014 approximately 390 300 inhabitants. This test should then allow the project to adapt and replicate the model contract to a dozen other rural areas in Morocco, with about 2 million inhabitants, and more broadly at the sub-region level. The total duration of the project is estimated at 45 months from the date of approval.

Project Objectives

The overall objective of the project is to increase access to drinking water through strengthening the demand for douars by individual connections, and to improve the management of drinking water supply and distribution networks. Specifically, the project should achieve the following results: (i) private operators manage the drinking water supply in rural areas; (ii) drinking water supply services are improved; (iii) an operational contract template is established; and (iv) 230 jobs are created.


The direct beneficiaries of the pilot phase are the households of the concerned municipalities and douars already served by standpipes or remaining to serve, approximately 99 200 inhabitants to be served by the project of El Borouj, approximately 214 500 inhabitants to be served by the project of Safi West, and approximately 76,600 inhabitants to be served by the North Larache project. In total, the three projects concern the improvement of the living and hygiene conditions of approximately 390,300 inhabitants. Women and girls will be the main beneficiaries of the elimination of water fetching, freeing them of time for educational or income-generating activities. ONEE will be able to test the commercial risk outsourcing model and then expand it to a dozen other rural areas. National private companies will benefit from the development of a new market.

Participating Organization

AfricaWater Facility Fund
Fund for African Private Sector Assistance
Office National de l’Electricité et de l’Eau potable (ONEE)


IATI identifier 46002-P-MA-EAZ-005
Other IATI identifier CA-3-A034853001
Last Update 09 Dec 2022


Contact Details


Geographic Location

Country Morocco
Coordinates Location Name
33.0833 -7.41667 Settat
32.1667 -8.83333 Safi
35.7806 -5.81365 Tangier