RABAT, Morocco (XOL Africa) — The African Development Bank Group and Morocco’s Fonds d’équipement communal, or FEC, have signed a second €150 million ($175 million) financing agreement to support municipal development and infrastructure investment across the country.
The agreement was signed Wednesday in Rabat as part of a broader package of deals that included a grant agreement and a letter of intent aimed at strengthening long-term strategic cooperation between the two institutions.
The financing will support sustainable, inclusive and climate-resilient infrastructure projects, including rural access roads, drinking water networks, urban renewal initiatives, and educational and socio-cultural facilities.
The operation is intended to improve public services at the municipal level, particularly in rural areas, while expanding access to essential services, strengthening communities’ resilience to climate change and creating opportunities for jobs and investment.
The African Development Bank will also provide technical assistance to the FEC to strengthen its operational capacity.
“These agreements reflect a strong shared ambition to go even further in supporting municipalities as key drivers of development,” said Achraf Tarsim, the African Development Bank Group’s country manager for Morocco. “Our priority is to accelerate the delivery of sustainable, inclusive and resilient infrastructure for the benefit of local communities.”
Omar Lahlou, FEC’s governor and chief executive officer, said the agreement reflected growing confidence and cooperation between the two institutions.
“This signing reflects the deepening trust between our two institutions,” Lahlou said.
“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 supports Morocco’s development priorities, including improving socioeconomic conditions and quality of life in communities across the country. It also contributes to the African Development Bank Group’s broader development priorities.
The FEC, a public bank dedicated to financing territorial development, has served as a technical and financial partner to Morocco’s municipalities for more than 65 years. The institution finances territorial development programs and works to address local challenges, including territorial and social disparities, climate resilience and the quality of public services.
