RABAT- Morocco plans to set up state-owned utilities in charge of water, electricity and sewage management to replace local subsidiaries of French companies Veolia and Suez, an interior ministry official told Medias24 on Tuesday.

The interior ministry was not available for immediate comment.

Contracts with Suez subsidiary Lydec, a Casablanca-listed company, and with Veolia-owned Redal and Amendis will not be renewed after they expire in 2026 and 2027, Mustapha El Hadi of the interior ministry told Medias24.

Employees of the utilities currently operating will join the state companies to be created in each region, he said.

A law will be enacted soon to lay the legal basis for this reform, he said.

(Reporting by Ahmed Eljechtimi; editing by Jason Neely) ((ahmed.eljechtimi@thomsonreuters.com;))