World Bank Approves $265 Million for Major Pumped Hydropower Storage Project in Morocco

On July 1, 2026, the World Bank approved $265 million for the 300-megawatt Ifahsa Pumped Hydropower Storage Project near Chefchaouen, Morocco. Co-financed by the African Development Bank and implemented by ONEE, the project will integrate 1 gigawatt of renewable energy, avoiding 1.7 million tons of CO2 emissions annually. It will also generate 820 annual construction jobs and unlock $1 billion in private investment.

Ifahsa pumped hydropower storage project

• ▪The World Bank Board of Directors approved $265 million on July 1, 2026, to support the Ifahsa Pumped Hydropower Storage Project in northern Morocco
• ▪The Ifahsa Pumped Hydropower Storage Project is a 300-megawatt facility located near Chefchaouen, Morocco, designed to store and release water to generate electricity

Morocco renewable energy integration

• ▪The Ifahsa project will enable Morocco to integrate at least 1 gigawatt of additional solar and wind energy into its national grid
• ▪The integration of additional renewable energy through the Ifahsa project is expected to help unlock approximately $1 billion in private investment

World Bank IBRD financing

• ▪The World Bank's $265 million funding combines financing from the International Bank for Reconstruction and Development and concessional financing from the Clean Technology Fund
• ▪The World Bank's contribution includes a grant from the Livable Planet Fund and technical assistance from the Energy Sector Management Assistance Program

African Development Bank cofinancing

• ▪The African Development Bank is co-financing the Ifahsa project alongside the World Bank
• ▪The Office National de l'Électricité et de l'Eau potable is the implementing agency for the Ifahsa project

Construction job creation

• ▪The expanded renewable energy capacity enabled by the Ifahsa project is expected to create additional employment opportunities across the energy sector
• ▪The Ifahsa project is expected to generate approximately 820 direct jobs annually during its construction phase

Climate emissions reduction

• ▪The Ifahsa facility is estimated to avoid approximately 1.7 million tons of carbon dioxide emissions annually
• ▪The Ifahsa project will replace approximately 3 terawatt-hours of electricity currently generated from fossil fuels each year