Announcement of World Bank Provides Forty-Nine Million Dollars to Support Water Supply Project in Morocco on June 11, 1979

FOR IMMEDl,<\TE., REL~ASE eWorldBank 1'818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 79/107 June 11, 1979 WORLD BANK PROVIDES $49 MILLION·To·suPPORT WATER SUPPLY PROJECT IN MOROCCO The World Bank today announced the approval of a $49 million loan for a second water supply project in the Kingdom of Morocco. The $182.5 million project will expand bulk water production and transmission facilities along the mid-Atlantic coast between Casablanca and Kenitra and in the greater Agadir area. Project works along the mid-Atlantic coast will include two booster pumping stations on the existing transmission pipeline between the Bou Regreg treatment plant and Casablanca, a raw water pumping station together with a pressure main linking the pumping station at the foot of the Bou Regreg Dam with the treatment plant, and a water treatment plant and transmission mains to the cities of Casablanca, Rabat, and Sale. The Agadir component will consist mainly of equipping the existing Ahmar • Boudhar well field with pumps and ancillary equipment, constructing a water treat- ment plant at Sidi Bou Shab and a transmission pipeline to Agadir, and installing power transmission lines to the well field and treatment plant. The project will create a revolving fund to provide credit to new low-income customers of the regies (water distribution authorities) in Casablanca, Rabat-Sale, and Kenitra for financing the cost of house connections and related charges to extend the distribution system. Presently about 61% of Rabat's population is connected to the water distribution system; this percentage drops to 53% in Casablanca, 50% in Kenitra, and 45% in Sale. By the end of 1983, some 48,000 house connections in addition to the normal extension program of the regies will be installed under this program, serving about 500,000 people. Of these, 300,000 live at or below the urban poverty threshold. The planned extension of the standpipe network, when completed, will provide better access to water for the people living in shantytowns, who will number 900,000 by the end of 1983. A water resource and management study which will be carried out for greater Agadir is expected to provide planning for water resource development and allocation among various users. In addition, consultants services will assist the Office National de 1 'Eau Potable in improving water treatment techniques. Additional financing for the project in the amount of $33.4 million is expected to be provided by a loan from the Kreditanstalt fUr Wiederaufbau of the Federal Republic of Germany. The Government 0.: Morocco will contribute $91.7 million, and $8.5 million will be provided by Morocco's Fonds d'Equipement Communal. The Bank loan is for • 20 years, including 4 years of grace, with interest at 7.9% per annum . NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T EC HN I CAL D A T A • PROJECT: Second Water Supply COUNTRY: Kingdom of Morocco TOTAL COST: $182.5 ~i1]!on BANK FINANCING: $49 million, for a term of 20 years, including 4 years of grace, with an interes~ rate of 7.9% per annum. OTHER FINANCING: Government of Morocco, $91.7 mill ion; Fonds d'Equipement Communal, $8.5 million; Kreditanstalt fur Wiederaufbau, $33.4 mi 11 ion. IMPLEMENTING ORGANIZATION: Office National de 1 'Eau Potable (ONEP) 6 Bis Rue Patrice Lumumba Rabat, Maroc Telex: PEPREI 31982 PROJECT DESCRIPTION: It consists of: a) the expansion of bulk water production and transmission facilities along the mid-Atlantic coast, including the construction of two booster pumping stations, a raw water pumping station, a treatment plant, a pressure main linking the pumping station at the foot of the Bou Regreg Dam with the treatment plant, and transmission mains to Casablanca and Rabat; b) the expansion of bulk water production and transmission facilities for the greater Agadir area, including equipping the Ahmar Boudhar well field with pumps and ancillary equipment, constructing a transmission pipeline to Agadir and a treatment plant at Sidi Bou Shab, and installing power transmission lines to the well field and treatment plant; c) providing funding for credit facilities to finance house connections for the low- • income population living in Casablanca, Rabat-Sale, and Kenitra; and d) conducting studies. PROCUREMENT: All major contracts let by ONEP ($62.5 mill ion) whose foreign exchange components are financed by the Bank, will be awarded through international competitive bidding (ICB) . . A preference margin of 15% of the c. i .f. price or the customs duty, whichever is lower, will be awarded to domes~ic manufacturers. Contracts let by ONEP for civil works less than $800,000 and for equipment and materials less than $100,000 (aggregate: $4 mill ion) will be awarded through local competitive bidding (LCB) in accordance with ONEP procedures. Partici- pation by foreign bidd~rs will be permitted. House connectlon installation will be carried out by force account. Materials used for installing the house connections and extending the distribution system ($11.2 million) will be procured through LCB. The Office National de 1'E1ectricite (ONE) will install the electricity supply line to the oil field and treatment plant ($2.6 mill ion) in accordance with local procurement procedures. Supply and installation of the Bou Regreg-Casablanca transmission pipeline will be procured and funded under parallel financing. CONSULTANTS: Consultant services will be provided for: a) detailed design and supervision of the bulk water production and transmission facilities, b) a water resource and water management study for the greater Agadir area, and c) assistance to ONEP for improving water treatment techniques. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: At least 8% 1983 - 0 - •