Announcement of World Bank Supports Restructuring of Morocco's Telecommunications Sector on February 3, 1993

FOR IMMEDIATE RELEASE World Bank 1818 H Street. N.W.. WashinSton. D.C. 20433, U-S.A.* Telephone: (202J 477-1234 Bank News Release No. 93/49 MENA Contact: Jeannie Yamine (202)473-2318 WORLD BANK SUPPORTS RESTRUCTURING OF MOROCCO'S TELECOMMUNICATIONS SECTOR, Washington, D.C., February 3, 1993 -- The World Bank announced the approval of a $100 million loan to Morocco to support a project aimed at restructuring the country's telecommunications sector. The project will assist Morocco in preparing for the liberalization of the telecommunications sector's activities and expand further the telecommunications network. As part of the project, technical assistance, training, and studies will be provided to strengthen the telecommunications sector's institutional capabilities. Technical assistance will range from data processing to financial and accounting systems as well as human resource and procurement management. Among the most important expected benefits of the project will be the removal of communications constraints to foreign investment and private sector development. Export-oriented and communications-intensive activities, in particular, are likely to be positively affected. The World Bank's loan is for 20 years, including a 5-year grace period, at the Bank's standard variable interest rate. The principal loan beneficiary is the Moroccan National Post and Telecommunications Authority (ONPT), an autonomous public enterprise affiliated to the Ministry of Posts and Telecommunications (MPT). Telecommunications has played an increasingly sizeable role in Morocco's economy. In 1991, the sector accounted for $260 million, or 4 percent, of total fiscal revenues. Demographic growth, however, has boosted demand from households and business enterprises, while supply has lagged behind. Morocco's telecommunications needs range from switching lines to microwave and optical fiber transmission routes and equipm6nt to expand ihternational switching gateways. Those elements, including 497,000 new switching lines and related local networks and subscriber connections, are among the physical components called for by the project plans. Also planned is equipment to expand the capacities of the two international switching gateways at Casablanca and Rabat by adding 12,168 new circuits, as well as increase the capacities of two earth stations to 360 circuits. Trunk dialling to about 780 rural communities will also be made available, as will a national radio frequency control center. NOTE: Money figures are expressed in U.S. dollar equivalents. f