Announcement of World Bank Approves Forty-Five Million Dollars for a Cement Project in Morocco on March 24, 1977

eWorldBank 1818 H Street, ~~- W.1 Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 77/72 March 24, 1977 WORLD BANK APPROVES $45 MILLION FOR A CEMENT PROJECT IN MOROCCO The World Bank announced today the approval of a $45 mill ion loan to help finance a cement project in Morocco that will contribute to the development of one of the less-advanced regions of the country. The loan was made to Cimenterie de l 'Oriental, a state-owned company, with the guarantee of the Kingdom of Morocco. The $182 mi 11 ion project will consist of the construction and start-up of a cement plant near Oujda, in the Eastern Province, with a production capacity of 1.2 mi 11 ion tons per year. The project is aimed to satisfy the growing demand for cement through local • production and to assist in the development of the Eastern Province, one of the less-industrialized regions in the country • The project will create l ,200 jobs during the construction of the plant plus 500 m0re during its operation. But, most important, the plant will improve the availability of cement and will encourage labor-intensive housing development and other construction activity. Morocco is presently experiencing an acute shortage of domestically produced cement and has had to import about 740,000 tons in 1976. The project is expected to produce net foreign exchange savings of about $34 million per year, at full capacity. The Bank loan is for a term of 14 years, including 3 years of grace, with interest at 8.5% per annum. Note: Money figures are expressed in US dol'Jr equivalents • • FORM NO. 1121 (5-76) T E C HN I CA L D A T A PROJECT: COUNTRY: TOTAL COST: CIOR Cement Morocco $ l 82 mi 11 ion • BANK FINANCING: $45 million, for.14 years, including 3 years of grace, with interest at 8.5% per annum OTHER FINANCING: Arab Fund for Economic and Social Development $24.5 million (expected); Moroccan Government $105.5 million; Moroccan Commercial banks $7.0 mi 11 ion. IMPLEMENTING ORGANIZATION: Cimenterie de 1 '0riental (CIOR), 10 Rue Ghandi, Rabat, Maroc. PROJECT DESCRIPTION: Construction of a 1.2 million tons per year cement plant near Oujda in the Eastern region of Morocco, and related distribution faci ~ities. National studies by Morocco of distribution and pricing of cement. • PROCUREMENT: Civil works, equipment and services wi l 1 be pro- cured through international competitive bidding in accordance with the Bank's guidelines. Procurement for infrastructure components will be carried out through competitive bidding in accordance with local procedures. CONSULTANTS: British consultants, Associated Portland Cement Manufacturers Limited (APCM), will be engaged for detailed engineering, procurement, supervision, training,and technical assistance. A total of about 1,500 man-months of consultant services wi 11 be necessary to set up the accounting system and for finalizing CIOR 1 s distribution study. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 13.8% 1978 . - 0 - •