Announcement of World Bank Lends Forty-Two Million Dollars to Morocco for Village Electrification on May 10, 1979

. "' . ·,J-OR IMMEDIATE .RELEASE.. .World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.•Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 79/83 May 10, 1979 WORLD BANK LENDS $42 MILLION TO MOROCCO FOR VILLAGE ELECTRIFICATION The World Bank has approved a $42 million loan to Morocco for a first village electrification project. The $85 million project is the first stage of a 15-year village electrification program aimed at providing c]cctricity service from the national grid to some 1,800 villages. The Bank-assisted project is designed to provide electricity to 360,000 people (60,000 dwellings) in 220 villages. It will be implemented over a period of four years in 17 • out of the country's 34 provinces. The Moroccan government has piaced high priority on rural elec- trification to promote economic activities and improve the quality of life in rural areas. The government's rural electrification program is expected to slow down migration from rural areas to towns and result in a geographically more equitable development. The project includes the construction of some 1;250 kilometers of 22-kV and 995 kilometers of 380/220-volt distribution lines and installa- tion of related equipment, and provision of about 45 MVA of 22/0.4-kV distribution transformer capacity and street lighting equipment. Consult- ants will also be provided to assist in detailed engineering and project management. The World Bank loan is for 26 years, including 6 years uf grace, with interest at 7.9% per,annum . • NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO. 1121 (5-76) T E C HN I CA L DA TA PROJECT: COUNTRY: TOTAL COST: Village Electrification Kingdom of Morocco $85 million • BANK FINANCING: $42 million, for 26 years, includinq a 6-year grace period, at 7.9% per annum. OTHER FINANCING: Govern,,i~nt of Morocco, $40.8 mi 11 ion Customers, $2.2 million IMPLEMENTING ORGANIZATION: Office National de 1 1 Electricit€ (ONE) 65 Rue Aspirant Lafuente Casa Blanca M·~rocco TELEX: OFELEC 22780M PROJECT DESCRIPTION: It includes: (i) construction of about 1,250 kilometers (km) of 22-kV and 995 km of 380/220-volt distribution lines and installation of related equipment; (ii) provision of about 45 MVA of 22/0.4-kV distribution transformer capacity and street lighting equipment; and (iii) provision of consultant services to assist in detailed engineering and project ~ management. PROCU.REMENT: Contracts for goods and works to be financed from the Bank loan will be awarded under international competitive bidding in accordance with the Bank's guidelines for procurement; in the evaluation of bids for these contracts, Moroccan equipment suppliers will be given a preference margin of 15% of the c.i.f~ price, or the prevatlfng customs duty, whichever is lower. CONSULTANTS: INTER-G, 3 Rue Henri Heine, 75016 Paris, France ECONOMlC RATE OF RETURN: 6% ESTIMATED COMPLETION DATE: 1983 - 0 - • '