Announcement of World Bank Approves Fifty-Eight Million Dollars for Vegetable Production and Marketing Project in Morocco on September 13, 1979

- FOR IMMEDtA TE RELEASE .World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 80/ 11 September 13, 1979 WORLD BANK APPROVES $58 MILLION FOR VEGETABLE PRODUCTION AND MARKET;NG PROJECT IN MOROCCO The World Bank has approved a $58 million loan to help finance a project which is the first phase of Morocco's development plan (1979-1985) for off- season vegetables for export. Out of about 18,000 hectares (ha), planted in off-season vegetables, the project will cover about 9,000 ha. The project area falls into five regions and consists of a narrow strip along the Atlantic Coast between Kenitra and Agadir. Almost all of the land is privately owned and 83% of it is cultivated by the owners. Over 80% of the farms are smaller than 10 ha. The $129.6 million project will be implemented over four years and • will aim at doubling Morocco's exports of off-season vegetables by introduc- ing modern production techniques, strengthening subsectoral production planning, and monitoring and establishing a separate marketing structure for off-season vegetable exports. At full development, the project will generate incremental foreign exchange earnings of $85 million annually. About 8,000 farm families are expected to benefit and the equivalent of about 16,000 jobs are expected to be created. The $58 million loan to Morocco is for 15 years, with 4 years of grace, and 7.9% interest per annum. NOTE: Money figures are expressed in U.S. dollar equiva;~nts . •  - 2 - procured by cooperatives. through established conwnercla~ channels provided that: (i) the cost of each indlvfdual contract for civil works and equipment does not exceed $300,000 and $150i000, respectively, or (ti) the total cost of the Investment does • not exceed the equivalent of $1,250,000. Goods and works in excess of these amounts will be procured followtng ICB procedures according to Bank guidelines. CONSULTANTS: Specialized assistance to the National Coordinating Committee in the fields of research, training, and demonstration will be provided by consultants who will be employed by December 31, 1980, on terms and condftlons acceptable to the Bank. ECONOMIC RATE OF RETURN: 46% ESTIMATED COMPLETION DATE: 1983 - 0 ... • • FORM NO, 1121 (5-76) T EC HN I CAL DA T A • PROJECT: COUNTRY: TOTAL COST: Vegetable Production and Marketing Kingdom of Morocco $129.6 mi 11 ion BANK FINANCING: $58 million, for a term of 15 years, including 4 years of grace, at 7.9% interest per annum OTHER FINANCING: Government of Morocco IMPLEMENTING ORGANIZATION: Ministere de l'Agriculture et de la Reforme Agraire 23, Avenue Moulay Hassan Rabat, Morocco Telex: 31932 MINAGRO PROJECT DESCRIPTION: It consists of medium- and long-term on-farm investments for vegetable production, including (a) the construction of 1,000 hectares (ha) of production greenhouses and 10 hectares of seedling greenhouses; (b) provision of agricultural equipment on 9,000 ha; and (c) soil disinfection and im- • proved irrigation systems on 4,000 ha of open fields. Further, it consists of incre- mental working capital to participating farmers to be financed through short-term agri- cultural credit to be provided by Caisse Nationale de Credit Agricole (CNCA) equipment, , facilities, and staffing to improve existing agricultural support services; construction of modernization of and equipment for 42 packing stations, 12 quality control stations, and a 6,000 square meter storage facility in the Port of Agadir to strengthen vegetable marketing services; rehabilitation of 125 kilometers (km), and construction of 125 km of feeder roads; and training, technical assistance, and a hydrogeological survey. PROCUREMENT: Contracts for farm inputs and farm equipment and machinery totaling about $14 million will be purchased individually from well established local and foreign commercial channels. Greenhouses (about $46 million) will be procured through international competitive bidding (ICB) in accordance with procedures acceptable to the Bank. Procurement for a large number of small contracts, totaling about $9 million for housing, buildings, vehicles, and equipment for supporting services, as well as for the construction and rehabilitation of feeder roads, will be procured through local procedures already determined to be satisfactory to the Bank. Contracts totaling about $8.6 million for construction and installation of machinery for two small producers packing stations, quality control centers, storage facilities and the hydrogeological surveys exceeding the equivalent of $300,000, and contracts for equipment exceeding $150,000 individually and $1.2 million in the aggregate, will be procured fol- lowing ICB procedurer in accordance with Bank guidelines. Civil works and equipment contracts not exceeding the above amounts will be procured through local competitive bidding procedures acceptable to the Bank. Contracts for civil works and equipment of cooperative packing stations, totaling $6.4 million to be financed by CNCA will be • . .. I