RADEEJ is a municipal enterprise (établissement public local) managed by a Director General, reporting to a Board composed of representatives of the local governments and the central government.

The total project cost is estimated at $67 million, which includes a sewerage network upgrade, pre-treatment and treatment plants, a sea outfall, and associated stormwater drainage works The proposed IFC investment is a $19.5 million equivalent Risk Sharing Facility for IFC’s own account.

20.64 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	20.64
Loan
Equity

* These investment figures are indicative

The project is located in the city El Jadida, Morocco, and surrounding cities of the Province of El Jadida, including Azemmour, Sidi Bennour, Oualidia and Ouled Frej).

Development of Private Sector and Mobilization of Local Resources:

- The project will contribute to the economic development of El Jadida. It will help attract new business by providing improved infrastructure facilities, and will in particular support the growth of the tourism industry through improved environmental conditions.

- The construction, operation and maintenance of the sewerage network and sewage treatment plants will create business opportunities for private contractors and temporary jobs during construction.

- The project will help a well-managed municipal utility access new sources of financing, without requiring sovereign support. IFC’s participation will ensure that sound credit criteria are used as local financial institutions enter into this new business line. Eventually, it is expected that the demonstration effect will result in local banks financing other municipal utilities without further need for credit enhancement by IFC.

Positive Environmental and Social Impact:

The project will generate environmental and social benefits for the population of El Jadida and surrounding municipalities by reducing health hazards due to the discharge of untreated sewage, reducing pollution of beaches, reducing odors in urban areas, and preventing flooding.

IFC involvement will help broaden access to more commercial sources of financing by local distribution utilities in Morocco, allowing for their increased autonomy. It will encourage local commercial banks to increase their exposure to the municipal sector. This will free budgetary space, helping the national authorities concentrate the use of guarantees and other financial support on sectors such as human development, where direct cost recovery is more difficult.

With the support of IFC, RADEEJ would be able to access the long tenors that it seeks, improving its capacity to implement its wastewater management program.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects. RADEEJ’s operations help extend water and wastewater treatment services in a region with limited infrastructure for safe disposal of sanitary and industrial wastewater. Wastewater treatment services provided by RADEEJ help in environmental protection and enhancing public health through treatment and disposal of sewage. The scope of the project includes rehabilitation of collection infrastructure and construction of treatment and discharge facilities, and would bring El Jadida and nearby municipalities up to national standards defined in the National Liquid Sanitation Plan (PNAL). RADEEJ is working on extending its sanitation services to include the municipalities of Sidi Bennour, Azemmour and Zemamera, as well as the rural communities of Oualidia and Ouled Frej.

Performance Standards (PS) that are applicable for this investment include:

- PS1: Social and Environmental Assessment and Management System
- PS2: Labor and Working Conditions
- PS3: Pollution Prevention and Abatement

Upon successful implementation of the agreed mitigation measures, the proposed project is expected to comply with Moroccan laws and regulations, IFC Performance Standards and applicable World Bank/IFC guidelines.