New developments in Pizzorno’s complaint against Morocco

– bySylvanus@Bladi · 2 min read
New developments in Pizzorno's complaint against Morocco

The dispute between the French group Pizzorno Environnement, which operates in the environmental services and circular economy sectors for local authorities and industries, and the Moroccan state, is entering a new phase.

After seizing the World Bank arbitration tribunal, the International Center for Settlement of Investment Disputes (ICSID) for "contractual violations and unpaid debts by Morocco", Pizzorno Environnement is claiming "between 40 and 50 million euros" in compensation from the Moroccan state, according to Africa Business+ citing the international law firm Bird & Bird, the French group’s counsel in this case. However, this amount may be reassessed.

Pizzorno Environnement had been awarded waste collection, treatment and recovery contracts in Casablanca, Marrakech, Meknes, Fnideq, Al Hoceima, etc. through its subsidiaries Teodem, Teorif, Teomara and Segedema. The Ministries of Economy and Finance and the Interior had reviewed and validated the contracts. Except that the renewal of several agreements has not been effective in recent years. Disputes then arise between the French group and the Moroccan state. In 2020, Teodem’s contract had been amicably terminated at the Oum Azza waste treatment and recovery center, with the Al Assima Intercommunal Cooperation Establishment (ECI) and representatives of the Ministry of the Interior, Pizzorno had specified in a press release.

The Moroccan side explained that the disagreements arose from the inability of the concessionaire to find a solution to the leachate treatment problem. "300,000 m³ currently stored in the six basins of the Oum Azza waste treatment and recovery center in the Skhirat-Temara region) were giving off foul odors with a negative impact on groundwater resources," it was reported.

Established in Morocco since 1996, Pizzorno Environnement, through its subsidiary Segedema, has been responsible for waste collection and sanitation in Casablanca, Rabat, Kenitra, El Jadida, Meknes and Essaouira, before expanding its activities to other Moroccan cities.