Announcement of Morocco Receives Thirty-Four Million Dollars World Bank Loan for Rural Development on May 22, 1980

. ~ . ' FOR IMMED-IATE RELEASE · , " eNorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 80/98 May 22, 1980 MOROCCO RECEIVES $34 MILLION WORLD BANK LOAN FOR RURAL DEVELOPMENT Some of Morocco's poorest subsistence farmers in the Loukkos Basin will be receiving aid through a World Bank loan of $34 million to help finance the Loukkos Rural Development Project. The six-yea·r project (1980-1986), under the direction of the Ministere de 1 'Agriculture et de la Reforme Agraire (Ministry of Agriculture and Agrarian Reform), will include agricultural and livestock development as well as erosion control· works on 15,000 mountaineous hectares in the Upper Loukkos. In the Middle Loukkos, efforts will be aimed at developing 17,500 hectares of field crops, improving collectively owned grazing lands and livestock production. The project also calls • for the establishment of 3,500 hectares of pine plantations and maintenance of existing ones in the lzarene Forest. The agricultural support services in the project area will be strengthened and the necessary infrastructure and equipment provided. In addition, 180 kilometers of all weather tertiary and farm roads, primary schools, health centers, rural water points, and markets will be constructed. In order to enable the government to register land holdings in rainfed areas, an aerial and ground survey of about half a million hectares of land will also be carried out under the project. At the organizational level, a revised implementation methodology calling for a high degree of farmers' participation in the proposed investments will be introduced, and a closer coordination of ~xtension efforts by all agricultural support services in the project area wi 11 be sought. Once proven successful, this methodology could be extended to similar projects throughout Morocco's mountain and steppe lands. In all, about 40,000 persons in a 59,000 hectare area of the Loukkos water- shed in northern Morocco will benefit from the increase in incomes and productivity. Agricultural and 1 ivestock production is expected to about double by 1990, and the increases will be absorbed locally. The World Bank loan of $34 million is to be amortized over 22 years including a four-year grace period, at 8.25% interest per annum. The Moroccan government • will put up $24.7 mill ion towards the total cost of $67.6 mill ion for the project . The rest will come from the National Agricultural Credit Bank and the farmers themselves. NOTE: Money figures are expressed in U.S. dollar equivalents. FORM NO.1121 (5-76) T ECHN I CAL D A T A PROJECT: COUNTRY: TOTAL COST: Loukkos Rural Development Morocco $67.6 million • BANK FINANCING: $34 mill ion to be amortized over 22 years, including four years' grace period, at 8.25% per annum OTHER FINANCING: Moroccan government, $24.7 million; Caisse Nationale de Credit Agricole (National Agricultural Credit Bank), $3.3 mill ion; and farmers, $5.6 million IMPLEMENTING ORGANIZATION: Ministere de 1 'Agriculture et de la Reforme Agra ire (Ministry of Agriculture and Agrarian Reform) Rabat, Morocco Telex: 31932 M Cable: MINAGRO PROJECT DESCRIPTION: The project comprises: a) agricultural and livestock development and erosion control works, including establish- ment of permanent pasture, and rehabilitation of small-scale irrigation works in the Upper Loukkos; b) development of field crops, rehabilitation of small scale irrigation works and pasture improvement in the Middle Loukkos; c) establishment of 3,500 hect. of pine plantations and maintenance of existing plantations in the lzarene Forest; d) construction of about 180 km of all weather tertiary and farm access roads, primary schools, health centers, rural water supply, and village markets and; e) aerial and ground survey of about half a mill ion hectares of land. Provision of housing and equipment for the agricultural services which will be strengthened to carry out parts a), b) and c) above. PROCUREMENT: Contracts for road construction amounting to $10.7 million will be decided through international competitive bidding. Other contracts for construction of housing and building totalling $10.3 million, purchase of $2.7 million worth of ~quipment and $7.5 million worth of aerial and ground surveying, will be procured according to local procedures already deemed satisfactory to the Bank. CONSULTANTS: About 48 man-months of specialized technical and training services will be provided. ECONOMIC RATE OF RETURN: 15% ESTIMATED COMPLETION DATE: 1986 - 0 - •