To support the growing urbanization of its territory, the Kingdom of Morocco has chosen to modernize at the beginning of the 2010s its decentralization framework, in order to make local authorities local authorities and their satellites, pivotal players in the sustainable development of the territories.

This development consists in particular of:

- the emergence of regions as a key player in economic development;

- the establishment of mechanisms, in particular financial, favoring the development of intercommunality (with, for example, the creation of local development companies);

- the increase in financial transfers from the State intended to increase the capacities of local public sector funding.

At the same time, Morocco has strong ambitions in terms of sustainable development, with in particular a greenhouse gas reduction target of 13% by 2030 indicated in the occasion of the COP 22 in Marrakech in 2016, at the same time as a growing concern to take take into account social issues in the realization of structuring projects.

The leading financing bank for Moroccan local authorities, the Fund of Communal Equipment (FEC) plays a crucial role in supporting this process of decentralization. It is indeed a major player in the financing of sustainable development of the country:

- via the granting of direct loans adapted to the needs of territorial actors;

- by supporting the emergence of regions as the main local financial player in the decentralization;

- by strengthening the technical and financial capacities of territorial actors in planning and management of their most structuring projects.

AFD's financial and technical support is expected in support of the development of FEC activities, and in particular better consideration of the issues of sustainable development in its financing and advisory support activities.

The purpose of the project is to support decentralization and sustainable local development through support for direct investment by local authorities, while strengthening the FEC in its role and mandate as the leading investment bank for Moroccan communities. Several specific objectives are pursued:

- Improve access to credit for local authorities, especially medium and secondary;

- Contribute to the financing of the improvement of the living environment of urban populations and rural areas by strengthening access to infrastructure, services and equipment base, in a perspective of sustainable development of the territories;

- Support the FEC in its financing strategy for projects presenting a climate co-benefit;

- Strengthen the capacities of the FEC and the communities in terms of setting up and management of projects, in particular for projects presenting a climate co-benefit.