Announcement of World Bank Lends Morocco One Hundred Thirty-Six Million Dollars for Urban and Tourism Development on January 26, 1981

. . FOR IMMEOIAT,E RELEA~E · ' : World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 81/48 January 26, 1981 WORLD BANK LENDS MOROCCO $136 MILLION FOR URBAN AND TOURISM DEVELOPMENT The World Bank has approved two loans to Morocco totaling $136 million, $36 million for a second urban development project and $100 million for tourism devel- opment. The Second Urban Development project, which builds on the experience of the first project in the capital city, Rabat, vJill be located in Meknes and Kenitra, the fifth and seventh largest cities, respectively. The project will continue the Bank's support for the urbanization policies of the Moroccan government," which in- clude the upgrading of existing squatter settlements and the design of low-cost, replicable programs to provide shelter, basic ~ervices, and employment for low- income urban families. The government will also receive assistance to carry out • studies needed for the preparation of new projects aimed at alleviating urban poverty. Some 66,000 persons, representing about 39% of the urban poor in Meknes and 57% of the urban poor in Kenitra, are expected to benefit directly from the project. Improved municipal services will benefit around 70% of the low-income population in the two cities. The World Bank's $100 mil lion loan for tourism development is the fourth of its kind to the Credit lmmobilier et Hotelier (CIH), one of Morocco's development finance institutions. The loan will go towards financing tourist facilities 1 mostly hotels, vacation villages, and other tourist accomodation facilities. These wi 11 be financed by CIH under loans to be made until the end of 1983. The project also includes a technical assistance program for the Moroccan Ministry of Tourism and CIH, mainly to complete a cost-benefit study on tourism investments and to finance a train- ing program for CIH staff to improve and computerize further its appraisal of tourism investments. Direct and indirect employment to be generated by this project is estimated at a minimum of 21,000 jobs. Hotels to be financed are expected to generate net foreign exchange earnings of $128 million (in constant 1980 prices) by 1987, when all the hotels in th~ program are fully operational. Both Bank loans to Morocco are for 17 years, including four years of grace, at an annual interest rate of 9.25% . • NOTE: Money figures are expressed in U.S. dollar equivalents.  • FORM NO. 1121 (5-76) T EC HN I CAL D A i' A PROJECT: Second Urban Development COUNTRY: Kingdom of Morocco TOTAL COST: $81. 1 million BANK FINANCING: $36 mill ion for a term of 17 years, including four years of grace, with interst at 9.25% per annum OTHER FINANCING: Government of the Kingdom of Morocco, $45. l million IMPLEMENTING ORGANIZATION: Main Agencies: Ministry qf Housing and Regional Development Rabat, Morocco Municipalities of Meknes and Kenitra PROJECT DESCRIPTION: The project will support the implementation, in the citiiia.of Meknes and Ken: t ra, of the fo 11 owing programs: a) upg ~ng of squatter settlements; b) provision of affordable serviced residential plots; c) credit for self-help housing improvement; d) construction of community facilities; e) development of serviced land for business activities; f) provision of facilities, equip- ment,and technical assistance to improve municipal services in the project cities; and g) studies for the preparation of new urban development projects. PROCUREMENT: Civil Works: Due to the labor-intensive nature and the rela- tively small size of most individual construction works, it is expected that only local contractors or international contractors, locally established, will bid on these works. Equipment and Vehicles: All contracts above $75,000 will be ·awarded through international competitive bidding, in accordance with World Bank guide 1 i nes . CONSULTANTS: The various implementing agencies will require consultant and advisory services for the preparat:on of final design and bidding documents and for the supervision of construction works. A total of 104 man-months of consultant~ advisory, and training services will be needed to assist the municipalities of Meknes and Kenitra in improving their municipal services. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 18% 1986 - 0 -~ •