Announcement of Forty-Eight Million US Dollars Loan for a First Water Supply Project in Morocco on July 20, 1972

INTERNATIONAL BANK FOR • RECONSTRUCTION AND DEVELOPMENT 1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Release No. 72/57 Subject: $48.0 million loan for a first July 20, 1972 water supply project in Morocco The World Ba.rue today announced a loan totaling $48.0 million for a first water supply project in Morocco. The loan to the Office National de l'Ea.u Potable (ONEP), guaranteed by the Kingdom of Morocco, will help finance a project to meet long-terrn water needs in the Kenitra.- Rabat-Casablanca region of Morocco where population, industry and tourism are·growing the most, and where local resources are almost fully exploited. ONEP is a bulk supplier of water to the Atlantic Coastal Zone a.nd to Marrakesh. In the next two years it is scheduled to undertake bulk supply of water for a number of other cities including Fez, Maknes and Tangier. In addition, it produces and dist~ibutes water in 80 smaller centers and operates a small number of municipal systems as agent for the municipalities. In most of Morocco water is scarce, the sunnners are hot and dry, and rainfall is concentrated in the few winter months. Morocco's population is about 1.5 million, two- thirds of which live in rural areas. Overcrowd.igg in the. older cities {Medinas) and • more recently in the shanty towns (bidonvilles) on the outskirts of the cities is be- coming very serious. Today Morocco has some 12.5 piped water supply systems serving mostly urban middle class and lower middle class housing. In villages, water is still often provided through ancient wells, which sometimes are modernized .with a pump. 'I'he project is the first stage of a long-term master plan· for water production and distribution. It provides for bulk water production in the Atlantic Coastal Zone between Casablanca and Kenitra, in order to satisfy the demands of the urban population in the area for the next 10 years. The aggregate water requirements of the cities and co:nurronities in this region are forecast to increase on average by about 7% annually. The project's main elements are the Bou Regreg ~m, where the transmission system origina.~$, .56 miles of transmission lines to Casablanca, a wa.ter treatment plant and a pumping station. The project also includes the rehabilitation of.the Fouarat System, which consists of the Ma.mora. well field near Kenitra.; an 83-mile pipeline to Casablanca via Rabat, and the Oued Mellah treatment plant near Mohammedia. The project will ensure consultant services for supervision of constructiop,, engineering services, management and tariff studies. The· total project cost is estimated at $104. 9 million. ~ri Bank loan will finance most of the foreign exchange component or 4.5.8% of the· proje<?t cost. The World Bank loan has been ma.de directly to the Office National de l'Ea.u Potable ( ONEP) and is guaranteed by the Kingdom of Morocco. The loan is for a term of 2 .5 years including a five-year gra.ce period with interest. at 7~ per annum. • - 0 -  • July 20, 1972 TECHNICAL DATA PROJECT: Water ~upp ly COUNTRY~ Kingdom of Morocco TOTAL COST: $104.9 million B.Al'Il< FINANCING: $48.0 million, 25 years, 5-year grace period, 7\% interest per annum. OTHER FINANCING: Govemment, intemally generated funds. IMPLEMENTING ORGANIZATION: Office National de l 'Eau Potable (ONEP), 6 bis rue • Patrice Lamumba, Rabat, lt>rocco; Cable Address: ONEP/REI, Rabat - Chellah, Rabat, Morocco. PROJECT DESCRIPTION: To assist in financing the first stage of the implementa- tion of a long-term master plan for bulk water supply and distribution in the Atlantic Coastal Zone of Morocco. The project includes: con- struction of the Bou Regreg Dam and related facilities; nearly 56 miles of pipeline to Casablanca; rehabilitation of an existing well field and its 83-mile coastal pipeline; consultant services for supervision of construction engineering services, management and tariff stuaies. PROCUREMENT: Contracts of about $35 million have been awarded because of the long time need to build the dam to meet the water shortages expected in 1974. There is no local preference nor any tariff preference. CONSULTANTS: For supervision of construction, engineering ser,dces, management and tariff studies. ESTll1ATED COMPLETION DATE: June 1976. - 0 - •