2005 - 2006 - Pinsent Masons Water Yearbook 2012

[2] Casablanca – block tariffs and service extension
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PART 1: 2005-2006 OVERVIEW
In 1997, Lyonnaise des Eaux de Casablanca (LYDEC) lead by Suez (France) was awarded the
30 year Urban Community of Casablanca (UCC) concession contract. This covers water,
sewerage and electricity and was extended in 2001 to cover waste management. During 1998,
LYDEC’s water and sewerage activities accounted for US$ 100 million in turnover (30% of the
total) and 60% of investment, reflecting the need to upgrade and extend the city’s water and
sewerage services. By 2004, leaks generating 25 million m³ pa of water losses had been
repaired, equivalent to the water needs of 800,000 people.
Service development 1997 2002
Water connections 440,000 590,000
Unaccounted for water 38.9% 27.7%
Application of cross subsidies
Block tariffs, 2005 Consumption
Per month
Tariff Mdh/m³
1st section 0 – 8 m³ 2.92
2nd section 9 – 20 m³ 9.69
3rd section 21 – 40 m³ 13.20
4th section > 40 m³ 13.25
Most of the water (649 million m³ out of 814 million m³ in 1999) is bought from ONEP, the
National Drinking Water Administration, for 3.95 Mdh/m³ meaning that water for essential use is
directly subsidised by LYDEC. As a result, 50% of customers pay less than US$ 3 per month.
LYDEC is obliged to make 45,000 low income connections every five years (65,000 by 2004). In
addition Lydec is carrying out pilot projects for service extension through training staff to
develop services for 10,600 households in two informal peri-urban settlements which lie outside
its contract specification in 2004. This project will involve Lydec sub-contracting its services to
small, local operators supported by US$21 million in funding.
14% of LYDEC’s equity was sold on the Casablanca Bourse on 18th July 2005, 80% of the
shares being bought by local investors. Suez continues to hold 51% of LYDEC, with the
remaining 35% being held by Moroccan institutions.
Sources:
Djerrari, F (2003) Best practice in urban water resource management: Contribution of LYDEC in Casablanca, World
Bank Water Week, Washington DC, USA, 4-6th March 2003
De Cazalet, B (2004) The role of Private Sector Participation in developing the water sector in the Mediterranean
Region: The example of Casablanca, FEMIP Expert Committee, Amsterdam 25-26 October 2004
Pinsent Masons Water Yearbook 2005-2006