Water privatization in Morocco

Water privatization in Morocco goes back to the times of the French Protectorate when most water supply systems were run under a private concession. After independence the private utility was nationalized, but in the mid-1990s the Moroccan government privatized water and sewer services again, alongside electricity distribution, in four cities. The privatization process began with the award of the Casablanca concession to Lyonnaise des Eaux (now SUEZ) in 1997, followed by the award of a concession for the capital Rabat in 1998 and the award of another concession for Tangiers and Tetouan to Veolia Environnement. In 2009 private companies provided water and sanitation services to 38% of the urban population of the country.

At the time of the French protectorate of Morocco beginning in 1912 the water supply of Casablanca, Rabat, Salé, Tangiers and Meknes was provided by the French private company Société Marocaine de Distribution d'eau, de gaz et d'électricité (SMD), a subsidiary of , under concession contracts. These contracts were terminated when Morocco became independent in 1956, at which time municipal public utilities became responsible for water supply and electricity distribution in the major cities of the Kingdom.

Casablanca. In the early 1990s the municipal public utility Régie Autonome Intercommunale de Distribution d'Eau et d'Electricité de Casablanca (RAD) had a poor service record. Therefore, "after the direct intervention of King Hassan" the government decided in the mid-1990s to bring in a private company to manage the city's water, sewerage and power networks. Lyonnaise des Eaux under its CEO , a close adviser of Jacques Chirac, negotiated the contract with the Interior Ministry under Driss Basri. The lengthy negotiations process for the contract was accompanied by intense criticism from the press, the Moroccan trade association Confédération Générale des Entreprises du Maroc, and city councilors. Finally a consortium led by Lyonnaise des Eaux (now SUEZ), was awarded the 30-year concession without a competitive tender. Lyonnaise des Eaux thus returned to a city where it had already provided services for almost half a century. The consortium was called Lydec and originally included Lyonnaise des Eaux (35%), Elyo (24%), Agbar (5%), EdF (18%) and Endesa (Spain) (18%). The contract was signed on April 28, 1997, between Jérôme Monod, CEO of Lyonnaise des Eaux, and Abdelmoughit Slimani, President of the Council of Greater Casablanca (Communauté Urbaine de Casablanca).

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