Review of the sub-sovereign financing framework in Morocco

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Client European Bank for Reconstruction and Development (EBRD)
Dates 2012
Sector(s)International Infrastructure
Service(s)Policy & Economics, Strategy & Finance

EBRD had decided to expand its operations to a number of South and Eastern Mediterranean countries, commencing with Morocco. One of the key sectors envisaged for EBRD engagement in these countries was infrastructure, which has been an important driver of transition in the Bank’s countries of operations.

CEPA was appointed by the EBRD to undertake a sector and policy review providing critical analysis of the sub-sovereign infrastructure financing framework in Morocco and formulating recommendations to make the framework bankable. Our review covered the following key areas:

  • analysis of the current status of fiscal decentralisation in the national transport and municipal (urban transport, water and sanitation, street lighting, solid waste management) sectors;
  • review of the relevant sub- sectors’ legal, policy and regulatory frameworks;
  • recommendations on steps to make sub-sovereign financing bankable; and
  • gap analysis of the PPP framework at national and sub-national levels.

We supported EBRD senior management in identifying a priority list of institutions/ sectors and investment opportunities within Morocco that they could engage with. We also assisted them in pinpointing the key financial, regulatory and legal issues and risks that would need to be addressed to improve infrastructure provision and financing in a manner that is commercially viable.

We played a key role in advising the EBRD on its expansion strategy into Morocco. Our report and recommendations lay the groundwork for the EBRD’s interaction with the national and local government, creating contacts and emphasising key gaps. In addition to our report, we provided the EBRD with a presentation (in English and French) to give to Moroccan stakeholders.