Prime Minister Akhannouch under fire over desalination contract
Published on Thursday 19 December 2024 Back to articlesThe opposition parties laid into Prime Minister Aziz Akhannouch during his monthly question and answer session in parliament on 16 December which was focused around the status of infrastructure projects in the Kingdom. Akhannouch came under fire particularly about the contract for the construction of a desalination plant in Casablanca which was awarded in November 2023 to a consortium that includes his own company, Afriquia Gaz. The other partners are Spain’s Acciona, and the Green of Africa renewable energy firm which is co-owned by Akhannouch and the fellow billionaire and banker, Othman Benjelloun,
The contract is for the design, financing and building of the facility, which will have a capacity of 548,000 m3 per day and be the largest desalination plant in Africa. The consortium has the right to operate the plant for a total of 30 years which includes three years for its construction. Situated in Sidi Rahal, 40 kms west of Casablanca, the project is part of the Kingdom’s strategy to meet growing water demand, and will supply drinking water to Casablanca, Settat, Berrechid, El-Jadida and Azemmour. It will also provide water to irrigate 5,000 hectares of agricultural land. The plant requires a MAD6.5 billion (US$652.2 million) investment that is to be mobilised through a public-private partnership.
During the questioning session, Akhannouch faced harsh criticism from a host of angry opposition MPs who accused him of a conflict of interests. The Parti de la justice et du développement’s (PJD) Mustafa Ibrahimi was particularly outspoken and clashed fiercely with the prime minister over the deal. So too did Youcef Bizeed of the Parti du progrès et du socialisme (PPS) who demanded that he provide ‘precise answers’ about the circumstances in which a company he is linked to was awarded the contract for the plant.
In particular, the questions focused on the fact that the Kingdom’s Commission Nationale des Investissements (CNI) — which is chaired by Akhannouch — recently agreed to categorise the contract as a ‘strategic project.’ This means that it can benefit from special dispensations and benefits courtesy of the state. As Bizeed complained, ‘The committee that is headed by Akhannouch has negotiated to give support and privileges to that project. These are privileges that people don’t know the details of.’ Opposition MPs also complained that neither Afriquia Gaz or Green of Africa have any experience in desalination activities.
Akhannouch did his best to defend himself against the charges, including by insisting that the awarding of the contract had been transparent. He also maintained that his consortium had won because it had submitted the best offer.
The premier was clearly rattled by the line of questioning, and lashed out angrily at opposition parties, warning, ‘Don’t lie to people, this project has been the subject of a transparent call for tenders and the State will not grant funding for its realisation.’ He emphasised that it would not receive any financial aid from the state, although the land for its 50 hectares site is being acquired by the government. Akhannouch also stressed that, once the plant is built, the price of a litre of desalinated water would be cheaper compared to the price proposed by other bidders.
Despite this, however, the opposition parties remain sceptical. This is not the first time that Akhannouch has been embroiled in accusations over alleged conflicts of interest. His ownership of one of the Kingdom’s largest fuel distribution companies has dogged him for several years, with repeated accusations that Afriquia Gaz, along with a handful of other large fuel companies, have been profiteering by keeping fuel prices artificially high (MF0722).
While these accusations have certainly undermined him and encourage the perception that the government is run by businessmen whose primary interest is in lining their own pockets, he has been able to weather the challenge, and this time is unlikely to be any different. As long as he continues to have the support of King Mohamed VI his position is secure.
This excerpt is taken from Morocco Focus, our monthly intelligence report on Morocco. Click here to receive a free sample copy.The December 2024 issue of Morocco Focus also includes the following:
Foreign Relations
- Franco-Moroccan ties are further consolidated…
- Implications
Politics
- Akhannouch under fire over desalination contract…
- Draft strike law approved by parliamentary committee…
- Benkirane embroiled in secularism row…
Economy
- Plans to increase airport capacity
- Sound Energy’s partial divestment to Managem SA