Announcement of Eighteen Million Dollars for Urban Development in Morocco on March 2, 1978

. . - '\F.OR IMMEDIATE. RELEASE' .-,,- . .~ ' - • World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 78/53 MARCH 2, 1978 $18 MILLION FOR URBAN DEVELOPMENT IN MOROCCO The World Bank has approved an $18 million loan to the Kingdom of Morocco for the Rabat Urban Development Project. This will be the first important attempt to upgrade squatter settle- ments in Morocco at a cost that the urban poor can afford. In addition to improving the 1 iving conditions and productive capacities of about 60,000 people, the project is expected -- through its demonstrative character -- to introduce institutional, procedural and pol icy changes in urban devel- • opment planning, financing and project execution which will have a long- ranging impact in urban development in the country. The Rabat Urban Development Project consists of comprehensive up- grading in the three quarters of Douars Doum, Maadid and Hajja. This will include rehabilitation and extension of basic and social infrastructure, improvement and expansion of commercial installations and home improve- ments through self-help~ In addition, it wi 11 provide an experimental sites and services/housing scheme and an employment generation program to create about 2,500 new jobs in the project area. Community services equipment to improve garbage collection, fire-fighting and emergency services as well as technical assistance to strengthen the institutional arrangements and technicai capabilities of the executing agencies will also be provided by the project. The $18 mill ion Bank loan to Morocco is for 20 years, including 5 years of grace, with interest at 7.45% per annum. NOTE~ Money figures are expressed in U.S. dollar equivalents • • FORM NO. 1121 1'.5-76) T E C ti N I C A L DAT A PROJECT: COUNTRY: TOTAL COST: Rabat Urban Development Kingdom of Morocco $37.6 million • BANK FINANCING: $18 mill ion, 20 years, including 5 years of grace, with interest at 7.45% per annum. OTHER FiNANCING: Government of Morocco, $16.67 mill ion $ 2.9 mil~ ion equity financing IMPLEMENTING ORGANIZATION: Rabat Urban Development Project Directorate Ministere des Finances, Rabat, Morocco~ Cable: Ministere des Finances, Rabat, Telex No. 31936M PROJECT DESCRIPTION: The project consists of: comprehensive squatter upgrading in the three quarters of Doua rs Doum, Maad id and Hajj a. This upgrading will include rehabilitation and extension of basic and social infrastruc- ture, improvement and expansion of commercial installations and home improvements through self-help; an experimental sites and services/housing scheme; an employment generation. program to create about 2,500 new jobs in the project area; community services equip- ment to improve garbage collection, fire fighting and emergency services; and technical assistance to strengthen the institutional arrangements and technical capabilities of the executing agencies. PROCUREMENT: Given the relatively small size and cost of individual project items, it is expected that most project items wil 1 not attract the interest of international contractors. Procurement of civil ,vorks will be on the basis of local competitive bidding. Supply of all material and equip- ment will be on the basis of international competi"ive bidding, in accordance with Bank guidelines; local manufacturers/suppliers will be given preferential treatment in bid evaluation. Water and electricity supply networks will be instailed in force account by Rabat's autonomous corporation for water and electricity distribution. CONSULTANTS: Cadastral surveys will be carried out by local consultants on· the basis of proposals from qualified firms registered with the Government. To avoid delay in project implementation, the Government has co~tracted with a locally established consulting firm, whose qualifications are satisfactory to the Bank, for the preparation of detailed engineering. Retroactive financing up to $250,000 of these consultant services is recommended under the project • ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 20% 1981 - 0 - •