Morocco EU contracts: Brussels funds, Europeans win deals

Roads, digital equipment, climate infrastructure or consulting services: Moroccan companies should be able to continue responding to calls for tenders financed by the European Union after 2028.

On Bladi.net : article 122753

The draft Instrument for Europe in the World, which is to frame the EU’s external financing between 2028 and 2034, maintains in principle access for companies established in southern neighborhood countries. Morocco falls directly into this category.

A Moroccan company could therefore compete for a contract for works, supplies or services financed by Brussels. But this general opening would be accompanied by exceptions likely to significantly reduce the place of local operators.

Markets in Morocco reserved for Europe

Article 20 of the draft allows the European Commission to restrict access to certain contracts to protect the security, strategic interests or supply chains of the Union.

In practice, a project carried out in Morocco could thus be financed by the EU, while reserving certain equipment, technologies or services for European companies. Moroccan companies could be excluded from the procedure or confined to subcontracting work.

The text does not clearly specify whether these restrictions would concern a single call for tenders, several contracts linked to the same project or an entire financing program.

This risk is highlighted in the report "Tied aid and strategic procurement" published by the European Parliament, at the request of the development committee. Its authors fear that the announced opening to local suppliers will remain mostly theoretical when Brussels invokes its economic and industrial priorities.

Article 23 goes further by authorizing, in certain cases, direct grants to private companies established in the European Union. No open call would then be necessary to allow Moroccan companies to submit a competing offer.

This procedure could notably concern investments in critical raw materials, digital infrastructure, strategic technologies or climate resilience.

The financing of a project in Morocco would therefore not guarantee that the main contract goes to a Moroccan company. A European company could be chosen directly, then involve local operators for secondary tasks.

Such an arrangement would reduce economic benefits for Morocco. Part of the revenues, skilled jobs and technical expertise linked to the project would remain in Europe, while Moroccan companies could depend on the foreign contractor to access technologies or spare parts.

The report also warns that restricting competition can increase project costs. OECD estimates it cites place the potential cost overrun of goods and services between 15 and 30% when aid is tied to suppliers from the donor country.