The African Development Bank (AfDB) and the Fonds d’équipement communal (FEC) signed a second €150 million loan agreement on 22 July in Rabat to bolster investment across Morocco’s municipalities, according to a press release by the African Development Bank. The signing ceremony also included a grant agreement and a letter of intent designed to anchor strategic cooperation between the two institutions in a long-term framework. The renewed partnership builds on an earlier cooperation between the Bank and the FEC. It aims to support the delivery of essential services at the local level. The agreement reinforces both institutions’ commitment to sustainable municipal development.
The FEC has, for over 65 years, been the leading technical and financial partner of Morocco’s municipalities. As a public bank dedicated to financing territorial development, it plays a pivotal role in implementing territorial development programmes. The institution continuously adapts its interventions to address local challenges and priorities. Its focus includes reducing territorial and social disparities and strengthening resilience to climate change. It also works to improve the quality of local public services.
The €150 million financing package will enable the FEC to continue funding sustainable, inclusive and climate-resilient infrastructure projects. These include the construction of rural access roads, drinking water networks, and urban renewal initiatives. The package will also support educational and socio-cultural facilities. The overall objective is to support the provision of public services at the municipal level, particularly in rural areas. The African Development Bank will additionally provide technical assistance to the FEC to further strengthen its operational capacities.
The operation seeks to improve community access to essential services, enhance resilience to climate change, and foster job creation and investment opportunities. Achraf Tarsim, Country Manager of the African Development Bank Group for Morocco, described the shared vision behind the partnership.
“These agreements reflect a strong shared ambition to go even further in supporting municipalities as key drivers of development. Our priority is to accelerate the delivery of sustainable, inclusive and resilient infrastructure for the benefit of local communities,” he said.
His remarks underscored the operational goals of the renewed cooperation.
Omar Lahlou, FEC’s Governor and Chief Executive Officer, also welcomed the agreement, stating: “This signing reflects the deepening trust between our two institutions. The FEC and the African Development Bank share common values centred on sustainable development, placed here at the service of municipal development dynamics.”
The project is aligned with Morocco’s development priorities, including the socio-economic development and quality of life of communities in its territories. It also advances the African Development Bank Group’s Four Cardinal Points. The renewed partnership marks a further step in supporting Morocco’s local development ambitions.
