The project is intended to provide drinking water to the population of the city of Chefchaouen and irrigate the agricultural lands in the region.
The dam, which will have a storage capacity of 12 million m3, will be ready in 36 months.
The project is co-financed by the Saudi Fund for Development and the State's budget.
On the same occasion, the Sovereign enquired about an irrigation project in the Dar Aqoubaa region, worth 50 million dirhams, and about a 400 million Dirham drinking-water project targeting the city of Chefchaouen.