Announcement of Bank and IDA Lend Morocco Fourteen Million Six Hundred Thousand Dollars for Highways on October 8, 1969

INTERNATIONAL BANK FOR RECONSTRUCrI'ION AND DEVELOPl\IEN'l, IN'.rEHNA'l'IONAL DRVELOPl\tIENT ASS()CIATION 1 8 1 8 H ST R E F. T, N W WASHINGTON D.C.20433 TELEPHONE EXECUTIVE 3-6360 Bank Press Release Ni~. 69/66 Subject: Bank and IDA lend ~rocco IDA Press Release No. 69/34 $14.6 million for highways October 8, 1969 The World Bank and its affiliate, th~ International Development As$ociation (IDA), arc lending the equivalent of $14.6 millfon to Morocco to help firumce a highway irr.provement aod maintenance program ~nd the construction of a new 107-mile road between Agadir and Marrakech. The 0bj~ctivc ftf the. project is to ~nsure tha~ Morocco's ~conomic development is not hindered by the deteriorflt.ion of itJ; '%ten-- s ive primary and s.e.condary road s.ystems and rising t:ran8port costs, particularly tn relation to agricultural develo~nt and tourism. • The Ba.nk loan to Morocco, in an amount equivalent to $7 .. 3 million, will be for a term of 20 years, including a four-year grace period, with in~exest at 71.o The IDA credit, also of $7 .3 million. will b~ for a term of 50 ~arsr including 10 years of grace.. The credit: -will be int.erest-freo but: will carry i1 service charge of 3/4 of i i to cover IDA•s administr,1tive expenses. The Moroccan economy- is largely dependent on the export of min~ral.s and agricultural products t and reU.P.s ~a:vily on its transport system for this pur- pose. Most mineral ex.ports are c...'"'..rried t0 port by ru.·il. bu.t transport of agri- cultural exports depends almost entirely t'm the road systen.. Reliable farm-to- market roads and an efficient trunk road network tn facilitata conmuni.c~tion oet-ween the centers of production, c~stnnpti.An and e.x.port are required to sup- port and promote-! agricultural develnpmenL Also~ the expansion of tourism will part Ly depend up.:m good roads toward the interior of the country .. • /more  Bank P.R. No. 69/66 - Morocco - Highways IDA P.R. No. 69/34 - 2 - The road network is well developed, consisting of some 31,000 miles, of which 12,000 miles are paved and a further 2,400 miles are well-constructed earth ro2a~ However, the highway system has deteriorated in recent years due to inadequate maintenance caused by insufficient allocation of funds and obsolete maintenance equipment. The project being assisted by the Bank and IDA consists of a three-year pro- eram providing for selective strengthening, reconstruction and improvement of 209 miles of primary roads; the construction of four new bridges on important main routes; the Agadir-Marrakech road; the purchase of maintenance equipment and spare parts; and a transport survey of the coastal zone. The works to be under·· taken on the Agadir-Marrakech route consist of the improvement of existing sec- • tions at the northern and southern ends and new construction of the 64-mile sec- tjon in the middle. The new alignment will provide a shorter route and will be a major improvement over existing tortuous mountain roads. Furthermore, it traverses an area with a promising tourist potential. The project will be executed by the Inspectorate General of Roads in Morocco's Ministry of Public Works and Communications. The total cost is estimated at the equivalent of $21.2 million. The ~nk and IDA financing will cover the foreign exchange costs and the local currency costs will be met by the Government. - 0 - •