Despite a big population, diversified economy and strong GDP growth, Morocco’s project market is small. With just $61bn of projects planned or underway, it is the same size as the Jordan market, and 25 per cent smaller than Bahrain’s. Despite this, its $3.6bn of contract awards a year is bigger than both of those markets. Morocco’s projects spending over the past decade has been evenly split between the power, construction, and transport sectors. Project activity has slowed since 2015s, but with $31bn of projects planned, there is potential for strong activity driven by power and transport schemes.
Morocco has $61bn of projects planned or underway. Of these, about $30.5bn of projects are under construction, with $30.8bn planned. The power, transport and construction sectors together account for about 85 per cent of all projects in Morocco.
About $36bn of projects contracts have been awarded in Morocco since 2008, an average of about $3.6bn of awards a year.
The value of annual project contract awards peaked in 2010 at $8.3bn, when it was boosted by the award of projects such as Ch’Rafate City and Jorf Lasfar Coal Fired Power Plant Expansion.
Based on the level of contract awards seen in the first half of the year, project activity in Morocco in 2018 is set to remain far below the levels seen in 2016 and 2017.
But with $31bn unawarded projects, including several power and logistics contracts worth above $1bn currently under study, Morocco’s projects market is expected to pick up strongly in 2019 and 2020 in terms of awards.
Rabat’s efforts to take advantage of Morocco’s climate and geographic location, as well as the government efforts to establish the country as a regional manufacturing hub, will see power and logistics projects surge in coming years.
Rapid urbanisation and industrialisation will drive demand for improved infrastructure over the coming decade.
Following the introduction of a PPP law, Rabat is aiming to lever private sector finance to develop various public sector projects through public private partnerships (PPP).
Major areas in which PPPs are planned or underway include transport, ports in particular, infrastructure, tourism, mining, energy, utilities, agriculture and education.
Owing to its expanding budget deficit, the government views PPP as an effective means to upgrade its infrastructure, particularly in the power sector as it aims to achieve its 2030 renewable energy target.
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