A 30-year management contract and an investment program of 61 billion dirhams for the SRM of Casablanca-Settat

A 30-year management contract and an investment program of 61 billion dirhams for the SRM of Casablanca-Settat
A 30-year management contract and an investment program of 61 billion dirhams for the SRM of Casablanca-Settat

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The group of territorial municipalities “Casablanca-Settat Distribution” is taking a new step in the operationalization of the regional multi-service company (SRM) of the region.

At an extraordinary session held on Wednesday, July 3, his office and council members approved the draft contract management of drinking water, electricity and sanitation distribution services, which will link it to the SRM of the regionand a draft power of attorney which will be concluded with the newly created Local Development Company (SDL) for public distribution services, the status of which was adopted by the members of the group’s council during a previous session, with the aim of managing the debts of the National Office of Electricity and Water (ONEE) in the three distribution sectors.

The selection of the future director of SRM Casablanca-Settat is underway

During this session, Nabila Rmili, elected last December as president of the group, explained that “the items on the agenda of this Wednesday’s session specifically concern contractualization, so that the SRM of Casablanca-Settat can start its work, and that we can proceed with the transfer of movable and immovable assets of the water, electricity, and sanitation services.”

“Today we will have to adopt the draft contract for the delegated management of these services by the SRM of the region, in order to be able to transfer to it the assets” which currently fall under the ONEE.

“The SRM of Casablanca-Settat will not be able to start its work either without the appointment of a general manager to manage it. The Ministry of the Interior is supported by a research office which has already started receiving applications,” she continued.

“The interviews have also started. We are seeing if some ONEE or Lydec officials have the necessary skills to manage the administrative affairs of the said SRM”.

And Nabila Rmili added: “The current stage is a constitutive stage. It is difficult because we are still at the beginning of the creation of the SRM of the region. We need to put in place the necessary mechanisms.”

The group’s council held a first ordinary session on this subject in October 2023, and four other extraordinary sessions. “This demonstrates the need for a certain speed on this subject, to be able to meet the deadline. By September [2024, ndlr]all procedures must be completed, in order to have visibility on several points, in particular that of the group’s headquarters and its budget”.

As for the budget, “it has been drawn up and sent to the Ministry of the Interior for approval,” said the group’s president.

Let us recall that the last decree on SRMs, published in February 2024 in the Official Bulletin, set a deadline four months to the regions of the East, Marrakech-Safi, Souss-Massa and Casablanca-Settat for the creation of their SRM.

The composition of the group council

According to the agreement relating to the creation of the “Casablanca-Settat Distribution” group, the office of its council must be composed of a president and four vice-presidentsThe agreement also stipulates that the group must be composed of all the municipalities, provinces and prefectures of the region.

According to our information, the members of the board of directors of this group were elected last December, with Nabila Rmili as president. She will be accompanied by the following four vice-presidents:

– Salaheddine Aboulghali, from PAM;

– Othmane Tarmounia, from Istiqlal;

– Mohamed Joudar, from the UC;

– Amine Hachim, also from Istiqlal.

The group’s board is made up of: 165 territorial municipalities, represented by 214 members, affiliated with all political parties.

A 30-year contract and an investment of 61 billion dirhams

At the extraordinary session of July 3, the chairman of the group’s public services committee presented the main points of the draft contract which will link the grouping to the SRM of Casablanca-Settat. The latter was drawn up by the Ministry of the Interior, and transferred to the parties concerned for discussion and adoption.

According to the same source, “in application of law 83.21 relating to the creation of regional multi-service companies and its implementing decrees, this draft contract aims to set the objectives to be achieved by the SRM of the region, in particular in terms of generalization of water, electricity, and sanitation services, but also by ensuring the continuity of these services, the application of the lowest rates, rationalization of consumption, and good management of financing.”

“This draft contract, which extends over a period of 30 years, thus sets up an investment programthe amount of which reaches a little more than 61 billion DH, which is distributed as follows:

15.42 MMDH for the drinking water distribution service;

12.75 MMDH for electricity service;

33.56 MMDH for sanitation service and wastewater treatment plants.

“This project also requires a number of measurable objectives, which the SRM is committed to achieving, in particular by implementing the investment program, but also through the management of the three services mentioned.”

“This contract gives authority to the master of these services to control their management, and thus sets up a standing committee who have the necessary resources to carry out this control and monitor their management.”

“In this sense, Annex 6 of the said draft contract insists on the need to put in place control reference documentsdrawn up on the basis of documents produced by the Ministry of the Interior.”

A distribution SDL for debt management

In addition to the SRM, the group of local authorities “Casablanca-Settat” proceeded, in a previous extraordinary session, to the approval of a project to create a new local development companynamed “Public Distribution Equipment Company” and the adoption of its status.

A project of power of attorney agreement, which will be concluded between the group and the said SDL, was thus adopted during the extraordinary session of July 3, for the management of ONEE debts.

“In application of the provisions of decree 2.23.1035 implementing article 14 of law 83.21, concerning the terms of compensation of ONEE on the assets that will be transferred to the SRM, of article 63 of the draft contract for the delegated management of drinking water, electricity and sanitation distribution services, and of a framework agreement relating to the implementation of the strategy for transferring debts from the distribution sector previously adopted by the group, its board adopted, during this extraordinary session, a draft power of attorney, which will allow it to procure for the new SDL the realization of the operation of transfer, payment and liquidation of ONEE debts“, explained the chairman of the public services commission of the said group.

This operation will also be modeled in the other regions of the Kingdom, which will also proceed with the creation of their own SRM and SDL dedicated to debt management, the objective being to have a unified procedure, but also for national or international creditors have a single point of contact.

The participation of the “Casablanca-Settat Distribution” group in the capital of this SDL will be supported by the Statevia the Ministry of the Interior. The same applies to the group’s participation in the capital of SRM Casablanca-Settat.

The latter amounts to 200 million DH, 40% of which is held by the group. This share will be supported by the Ministry of the Interior, knowing that the State already holds 25% of this capital. The total amount that will be supported by the State in the capital of the SRM of the region thus amounts to 130 MDH.

900 MDH transferred to the SRM works fund

Finally, the last point adopted during this extraordinary session concerns to the transfer amounts deposited in the works fund, set up within the framework of the delegated management contract concluded with Lydec, to the SRM works fund.

According to Nabila Rmili, the Lydec works fund currently has 900 MDH, which will thus be transferred to the SRM works fund of the region”.

And to conclude: “The financing of this company will come mainly from consumer subscriptions, in addition to credits.”

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