Announcement of Seventeen Million Five Hundred Thousand Dollars Loan to Morocco for Agricultural Development and Irrigation on August 26, 1964

INTERNATIONAL BANK FOR • RECONSTRUCTION AND DEVELOPMENT 1818 H STREET, N.W., WASHINGTON D. C. 20433 TE PHONE: EXECUTIVE 3-6360 Bank Press Release No. fJ.4./32 Subject: $17. 5 nillion loan to Morocco August 26, 1964 for agricultural development and irrigation The World Bank today made a loan eglrl.valent to $17 .5 million to Morocco to assist in financing the Sidi Slima.ne agricultural development and irrigation pro- gram. The program is a pilot undertaking to introduce modern intensive agricul- ture into Morocco, and its successful execution will point the way to similar developments in other parts of the country. Its purpose is to improve the quality and quantity of agricultural products both for the home market and for export, to • diversify production, ma.inly through the introduction of sugar beet to meet part of Morocco's sugar requirements, and to improve living standards through raising the level of farm incomes. Bank of America Natioca.l Trust and Savings Association, San Francisco is participating in the loan, without the World Bank's guarantee, to the extent of $100,000 representing part of the first maturity which falls due September 15, 1972. The Sidi Slimane project area encompasses some1 247,000 acres in the Rharb Plain, an alluvial region in the Sebou River Basin, about 65 miles northeast of Rabat, the capital~ Its soil and climate make it one of the most promising agri- cultural areas in Morocco, particularly where irrigation is available. Good motor roads and a railway link it with the principal cities of Moro~co - Casablanca, Rabat, Fez, Meknes and Tangiers. The cultivable area consists of 217,000 acres, part of which is already irrigated by the Biver Beth s~rstem, and the remainder is • under rain-fed farming.  - 2 - • A program for the comprehensive development of the Sidi Slimane area was be- gun in 1962, and the first phase is scheduled for completion in 1968 at a total estimated cost equivalent to $46.6 million. The main elements of this six-year program being assisted by the Bank loan consist of the improvement of the existing iir~gation system on some 69,000 acres and the construction of irrigation works for an additional 10,000 acres; improvement and extension of drainage facilities for both irrigated and rain-fed lands; improvement of the existing farm-to-market road system; consolidation of farm holdings, land leveling, construction of farm build- ings and the provision of equipment to enable farmers gradually to adopt modern methods of crop rotation, dairy and livestock farming; the completion of 11 Agricul- tural Service Centers which will provide farmers with equipment, seeds, fertilizer, transport and marketing services, as well as advice and vocational training; the establishment and stocking of 9 dairy centers which, after 1965 and experience has been gained, will be increased to 13 centers. The dairy centers will operate closely with farmers and with the Agricultural Service Centers and are intended to form the nucleus for the expansion and improvement of milk and meat production. • A!.so included in the Government's prog:ca~, but not being assisted. by the Bank loan, are a sue;ar mill, al:r.eady in operation, a dairy plant, a cotton gin, a citrus packing plant and a fruit juice and preserves plant, all of which will be built by 1966. The program, other than road improvements which are under the Ministry of P,J.blic Works, will be carried out by the Office National des Irrigations, an autonomous public authority established in 196o wi~h responsibility for the improve~ ment and development of irrigated q, areas throughout Morocco. The Bank loan is for a term of 25 years and bears interest at the rate of 51·% annually. Amortization will begin on September '1.5, 1972. The 8-year grace period, which is longer than is usual for Bank loans, was agreed to not only because of • Morocco'G external payments position but also because the full program requires large addttional expenditures by the Government and substantial returns from the project cam\ot be expected until after 1971.