The Moroccan National Highway Company (ADM) is at a strategic turning point as the country prepares to host the 2030 World Cup. With its important role in the development of infrastructure of the KingdomADM is faced with complex issues combining growth, debt and modernization.
ADM aims to extend its network by 1,200 km by 2030, despite high debt
ADM bears a heavy financial burden, with accumulated debt of 40 billion dirhams. This sum, resulting from loans from local and international banks, as well as bond financing, remains unchanged since the completion of the Khouribga-Beni Mellal section. This financial weight considerably limits the company’s ability to invest in new projects.
The exploratory mission report also highlights the fragility of income generated by tollsinsufficient to repay loans at a sustained pace. In response, the Ministry of Economy and Finance extended the financing deadlines and renegotiated the interest rate. These measures aim to offer a certain flexibility to ADM, in particular when approaching the organization of the 2030 World Cupwhere the company will have to deliver 1,200 additional kilometers of highways to reach a total network of 3,000 kilometers.
ADM faces another major challenge: the decline in its workforce. In a decade, the number of permanent employees fell from 550 to 440. This reduction, combined with the departure of 122 experienced executives, created a skills gap, forcing ADM to outsource certain services to foreign design offices. Furthermore, the working conditions of the 900 employees of subcontracting companies in toll stations continue to give rise to regular protests, highlighting the need for structural reforms to stabilize human resources.
Several projects in progress
ADM maintains its ambitions despite the challenges it faces, by pursuing major infrastructure projects. Among them is the Tit Mellil-Berrechid highwaya 30 km section intended to bypass Casablanca and streamline traffic between the north and south of the country. This project, estimated at 2.5 billion dirhams, is part of a strategy to relieve congestion on the main roads. Moreover, the Rabat-Casablanca continental highwaywith a length of 59 km and requiring an investment of 6 billion dirhams, aims to relieve the current section, which is often saturated, while offering increased comfort to users.
Recommendations for a sustainable recovery
To ensure a sustainable recoverythe report of the exploratory mission highlights several strategic recommendations. It underlines the urgency of reducing ADM’s high debt and proposes a review of the 2019 framework agreementwhich sets the duration of the concession at 99 years. Strengthening the internal workforce and leveraging the expertise of the company’s executives are also considered essential. Operationally, the report recommends extending the video surveillance by integrating cutting-edge technologies to enhance road safety, as well as enable radio d’information ADM Trafic to alert and inform drivers in real time. Finally, the promotion of PME in calls for tenders linked to development projects is presented as an opportunity to boost the local economy and strengthen the efficiency of the projects.
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