Announcement of World Bank to Help Expand Access to Social Services for Poor in Morocco on June 5, 2002

World Bank To Help Expand Access To Social Services For Poor In Morocco Media Contact: In Washington: Sereen Juma 1 (202) 473-7199 e-mail: sjuma@worldbank.org WASHINGTON, June 5, 2002 — The World Bank yesterday approved a US$5 million loan that will support the Government of Morocco’s efforts to deliver basic social services to poor communities and vulnerable groups by strengthening the role of the Social Development Agency (SDA) entrusted with managing community-based projects. The International Bank for Reconstruction and Development (IBRD), an arm of the World Bank Group, which provides loans and technical assistance to middle-income countries, will issue the loan on a fixed spread basis with an 8-year grace period and a maturity of 17 years. The Government of Morocco will contribute $8 million to the project. The wide disparities and gaps in social services between rural and urban areas are among the main development challenges facing Morocco. For example, only 45 per cent of rural households have access to potable water despite remarkable improvements in access over the last decade; and less than 20 per cent of rural households have access to electricity versus more than 85 per cent in urban areas. In addition, inadequate infrastructure such as the lack of main roads and markets in rural areas, has contributed to the need for the poor to diversify their sources of income. The SDA project will provide support for community-based infrastructure such as irrigation, small markets and rural roads, and promote income- generating activities. It will also seek to strengthen the capacity of local non-governmental organizations (NGOs) so that they are able to set their own priorities and implement development activities. A demand-driven mechanism for delivering social services will be established by engaging local communities to ensure that services are delivered in a relevant and cost-effective manner. Assistance to SDA is provided within the context of the World Bank’s country assistance strategy for Morocco, which focuses on eliminating poverty, particularly in rural areas.