Waste Management: The EBRD Considers Funding of 270 Million MAD to Support Mecomar’s Expansion
European Financial Institution Considers €25 Million Loan for Moroccan Operator
The European Bank for Reconstruction and Development (EBRD) is currently assessing the possibility of granting a loan of up to €25 million, equivalent to 270 million dirhams, to the Moroccan operator Mecomar S.A. This funding aims to support the launch of five delegated management contracts in the cities of Meknès, Témara, Martil, M’diq, and Fnideq, as part of a broader investment program estimated at 294.2 million dirhams.
The Moroccan municipal waste management sector continues to attract international funding, with the EBRD’s planned loan documented in project file number 57285, published on November 11, 2026. The operation seeks to facilitate the initiation of five delegated management contracts awarded to Mecomar.
These contracts, which were awarded following international tenders compliant with law 54-05 concerning the delegated management of public services, include waste collection, street cleaning, and the transportation of waste to designated facilities across the municipalities involved.
Financial Overview and Operational Needs
The projected investment for this initiative totals approximately 294.2 million dirhams, with the EBRD’s proposed financing expected to cover nearly 92% of costs. The resources mobilized will primarily be allocated towards acquiring collection trucks, specialized vehicles and equipment, as well as establishing the working capital necessary to commence operations.
This financial structure addresses an operational challenge inherent in delegated management contracts: the need for a suitable fleet and resources available from the outset to ensure continuous service delivery. Consequently, the EBRD’s financial commitment would empower Mecomar to simultaneously support multiple territorial deployments.
A Diverse Operator with Expanding Activities
Founded in 1995 and owned by the Sahyoun family, Mecomar is one of Morocco’s leading private companies in waste collection and urban cleaning. According to data provided by the EBRD, the company manages delegated contracts in thirteen municipalities across the country through dedicated subsidiaries.
Mecomar’s operations extend beyond merely managing cleanliness contracts. The group also engages in the manufacturing and assembly of equipment for municipal sanitation, including waste collection trucks, street sweepers, and various specialized vehicles. This industrial activity not only meets its operational needs but also caters to third-party clients.
Employing around 6,000 people, Mecomar consists of nearly 5,900 permanent staff, supplemented by seasonal workers, especially during peak periods in coastal municipalities. The development of new contracts in five cities further broadens the operator’s engagement while reinforcing its requirements for equipment, logistical organization, and human resources.
Environmental Performance at the Project’s Core
In addition to its financial and operational dimensions, the project incorporates critical environmental and social aspects, which the EBRD emphasizes. The primary objective is to enhance the quality and coverage of municipal services while improving their environmental performance, aligning with the goals of the National Household Waste Program.
The initiative specifically aims to improve waste collection and transportation to authorized facilities. Whenever contractual provisions allow, it may also support the introduction of source separation mechanisms and the routing of separated materials to recycling and recovery units.
The planned support also encompasses the company’s internal practices. The EBRD anticipates enhancing a group-wide environmental and social management system, alongside actions related to workplace safety, technical training, and improvements to employment conditions.
Moreover, special attention is given to increasing women’s representation in technical roles through awareness initiatives, training programs, and partnerships with educational institutions.
Funding Still Awaiting Final Approval
Despite the significant loan amount under consideration, the operation has yet to receive final approval. The EBRD currently classifies the project as exploratory, pending its final review. The anticipated date for submission for approval is set for January 14, 2027.
Thus, the planned financing represents a significant step in supporting Mecomar’s development, but its realization is contingent upon the validation of the proposal and the completion of the respective procedures.
Through this initiative, the EBRD reaffirms its interest in municipal infrastructure and environmental services in Morocco. It also highlights the role of long-term financing in facilitating necessary investments for modernizing waste management, a sector whose challenges now transcend mere collection to gradually incorporate the imperatives of environmental performance, recycling, and resource recovery.
