Towards the end of the foreign monopoly?

Towards the end of the foreign monopoly?

Morocco put an end to the system of delegated management of water, electricity and liquid sanitation services, which was dominated by foreign companies. This decision results from the entry into force of law 83-21, which provides for the creation of regional multi-service water and electricity distribution companies.

Each region of the country will see the formation of such societies, placed under the authority of local communities. These companies will be tasked with managing the distribution infrastructures under their jurisdiction, while maintaining the diversity of services to improve the efficiency of investments and ensure adequate financing.

With this new law, the delegated management system, formerly controlled mainly by foreign companies, particularly French ones, will be replaced. The new companies created will comply with the provisions of the law on public limited companies and will focus on the management of the infrastructures for the distribution of drinking water, electricity, liquid sanitation and public lighting in their territory, under a management contract concluded with the owner of the infrastructure.

The objective of this reform is to find solutions to the problems related to the distribution of drinking water, electricity and liquid sanitation due to the current complexity of the management of this sector. The new approach also aims to ensure that water and electricity prices remain set within specified limits, while giving local authorities sole responsibility for managing these services.

The creation of these regional companies aims to bring together all the players in the sector in order to improve the management of these vital infrastructures. Current employees of the National Office of Electricity and Drinking Water (ONEE) as well as independent water and electricity distribution agencies will be transferred to the new companies, preserving their rights and social benefits.

In short, this law aims to establish multi-service regional companies for the distribution of drinking water, electricity and liquid sanitation, putting an end to the previous delegated management system, and paving the way for better infrastructure management, while encouraging new investments in this crucial sector.

With the end of the foreign monopoly in the distribution of water and electricity in Morocco, this new reform marks an important turning point in the sector. By placing infrastructure management under the authority of local authorities and creating multi-service regional companies dedicated to this task, the country aims to strengthen its sovereignty over these vital services.

By allowing local authorities to take charge of these missions, the reform also offers an opportunity to respond more effectively to specific local needs and to promote more participatory and transparent management. This approach should encourage greater accountability of local actors and encourage better coordination between the different parties involved in the distribution of water, electricity and liquid sanitation.

It should be recalled that the Government Council, meeting on January 26, 2023, had adopted Bill 83-21 relating to regional multi-service companies, which aims to remedy the constraints affecting the drinking water, electricity and liquid sanitation distribution sector, which prevent it from meeting growing demands.


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