Morocco’s National Office of Electricity and Drinking Water (ONEE) made an announcement on Tuesday revealing the launch of an international tender for the construction of the El Menzel pumped-storage hydropower station. This facility will have a capacity of 362 MW. Moreover, it will be located approximately 35 kilometers southeast of Sefrou in the Fez-Meknes region.
Furthermore, the contract will be awarded on a turnkey (EPC) basis. It entails execution studies, equipment supply, construction, installation, and commissioning.
Timeline
The bid deadline is set for September 30, 2026. The project has a projected completion period of 48 months. The Islamic Development Bank (ISB) is funding he project.
The tender marks the second phase of a process ONEE initiated in May 2023. Six consortiums had originally submitted their candidacies.
List of Prequalified Consortiums on the Project
Three were prequalified: a grouping of China International Water & Electric Corporation, Yellow River Engineering Consulting, Harbin Electric Machinery, Harbin Electric International, and Jet Contractors; the Sinohydro-Andritz Hydro consortium; and a partnership between Webuild and Dongfang Electric International Corporation.
How Pumped-Storage Transfer Stations Work
Pumped-storage transfer stations operate by moving water between two reservoirs at different elevations. During periods of low electricity demand, water is pumped to the upper basin to store energy.
When consumption peaks, the stored water is released to generate electricity rapidly. The mechanism enables grid operators to balance supply and demand while reinforcing the stability and security of power delivery.
Significance of the Project
Furthermore, El Menzel station fits into ONEE’s broader strategy to expand Morocco’s hydraulic storage capacity as the country accelerates the deployment of renewable energy sources. The office currently operates two such facilities: the Afourer station at 464 MW and the Abdelmoumen station at 350 MW. A third, the 300 MW Ifahsa station, is under development.
Once completed, El Menzel will bring Morocco’s total pumped-storage portfolio to four stations. ONEE described the infrastructure as indispensable for absorbing the growing share of renewables feeding into the national grid and for improving the overall flexibility of the electrical system.
The launch of the tender represents a concrete step in advancing the project from planning to execution, ONEE noted.
Project Factsheet
Project Name: El Menzel Pumped-Storage Hydropower Station (Station de Transfert d’Énergie Par Pompage – STEP El Menzel)
Primary Objective: Deliver a high-capacity clean energy storage facility to manage grid stability, balance the intermittency of utility-scale solar and wind power, and supply rapid-response electricity to the Moroccan grid during peak demand.
Executing Agency: Office National de l’Électricité et de l’Eau Potable (ONEE)
Primary Financier: Islamic Development Bank (IsDB), with initial engineering and design phases co-funded by KfW Entwicklungsbank.
Contract Type: Engineering, Procurement, and Construction (EPC) turnkey contract.
Project Lifecycle Stage: International tender launched (July 2026), with bids closing late September 2026.
Projected Construction Timeline: 48 months from contract award.
Installed Capacity: 362 Megawatts (MW)
Prequalified Engineering Consortiums
- Consortium 1: China International Water & Electric Corporation, Yellow River Engineering Consulting, Harbin Electric Machinery, Harbin Electric International, and Jet Contractors.
- Consortium 2: Sinohydro Corporation alongside Andritz Hydro.
- Consortium 3: Webuild S.p.A. partnering with Dongfang Electric International.
Project Team
Project Owner and Executing Agency
- Office National de l’Électricité et de l’Eau Potable – Branche Électricité (ONEE-BE): The Moroccan state-owned utility serving as the project client, supervisor, and ultimate asset operator.
Development Finance Institutions (DFIs)
- Islamic Development Bank (IsDB): Acting as the primary lead co-financier under ordinary loan and installment sale structures.
- European Funding Consortium: Initial technical, environmental scoping, and design phases are backed by the German Development Bank (KfW), the European Investment Bank (EIB), and the European Bank for Reconstruction and Development (EBRD).
Engineering, Procurement, and Construction (EPC) Bidding Consortiums
- The CWE-Harbin-Jet Alliance: China International Water & Electric Corporation (CWE), Yellow River Engineering Consulting, Harbin Electric Machinery, Harbin Electric International, and Morocco’s Jet Contractors.
- The Sinohydro-Andritz Venture: Sinohydro Corporation (China) partnering with Andritz Hydro (Austria).
- The Webuild-Dongfang Partnership: Webuild S.p.A. (Italy) in tandem with Dongfang Electric International (China).
Environmenal and Scoping Consultants
- Insuco: Appointed as the lead environmental and social advisory firm tasked with executing the comprehensive Environmental and Social Impact Assessment (ESIA) and designing the structural land acquisition and livelihood restoration framework.
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