Announcement of Thirty-Five Million Dollars for Morocco’s Farmers on January 13, 1977

·•world Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 77/51 JANUARY 13, 1977 $35 MILLION FOR MOROCCO'S FARMERS Some 350,000 Moroccan farmers will benefit from a third Agricultural Credit Project partly financed by a $35 mil lion World Bank loan. The first and second Agricultural Credit Projects succeeded in strengthening the institutional capability of Moroccols Caisse Nationale de Credit Agricole (CNCA). The Third Agricultural Credit Project aims at increasing agricultural production to meet the country's rising demand in line with the objectives of its plan and at supporting CNCA's ongoing efforts directed to improving the productivity of low income farmers. An estimated $350 million agri- cultural production, generated by the project, wi 11 help improve Morocco's • balance of payments by reducing import requirements for grain, oil seeds, sugar, meat and milk, and by increasing vegetable exports to European countries. The project, which wi 11 cover most of CNCA's program for medium- and 0 long-term lending from January 1977 through August 1979, includes a technical assistance component which wil 1 help in the monitoring and the evaluation of the impact of the sub-loans on productivity and the increase in farmers' income. This wi 11 be most helpful in devising sound agricultural policies for the future. The $315.3 million investment project consists, among other things, of 27 percent for 1 ivestock development, 22 percent for tractors and other machinery, and 19 percent for farm buildings. Parallel financing of $31 million is expected to be provided by the Arab Fund for Economic and Social Development. The Bank loan to CNCA with the guarantee of the Kingdom of Morocco wi 11 be for 13 years, including three years of grace. It wi 11 be at an interest rate of 8.7 percent per annum. • Note: Money figures are expressed in U.S. dollar equivalents . FORM NO. 1121 (5-76) T ECHN I CAL DAT A PROJECT: COUNTRY: Third Agricultural Credit Morocco • TOTAL COST: $315.3 mi 11 ion BANK FINANCING: $35 mi 11ion for 13 years, incl~ding 3 years of grace, at 8.7% interest OTHER FINANCING: Caisse Nationale de Credit Agricole (CNCA), $148.5 million Arab Fund, $31 mi 11 ion Sub-borrowers, $90.4 mil lion Government, $10.4 million IMPLEMENTING ORGANIZATIONS: Caisse Nationale de Credit Agricole (CNCA) 2 Rue de'Alger Rabat, Morocco Cable: CREDAGRI Telex: CREDAGRI 31657M Office Regional de Mise en Valeur Agricole du Seuss Massa (ORMVASM) B. P. 21 Agadir, Morocco Telex: 81870 PROJECT DESCRIPTION : L· . , ket he previous . 1tura 1 ere d.its, t h.1s proJect two agr1cu . • aims at increasin9 agricultural production to meet Morocco's rising demand in line with the objectives of the country's plan and at expand- ing the capability of Caisse Nationale de Credit Agricole (CNCA) as a sound agricultural credit institution. In addition, the project wil 1 contribute to raising the incomes of small farmers and of previously landless farm workers organized in cooperatives. The project will cover most of CNCA's program for medium- and long-term lending from January 1977 through August 1979, and will include related technical assistance. Out of an in- vestment totaling $315.3 mill ion, 27% wi 11 be for 1 ivestock development, 22% for tractors and other machinery, 19% for farm buildings, 16% for draft animals and related equipment, 8% for small irrigation equipment and 6% for plantations. PROCUREMENT: Through normal commercial channels CONSULTANTS: Consultant services have been obtained in accordance with Bank guide} ines for the applied research program to be carried out by ORMVASM. Total consultant services for the project will amount to 130 man- months at an average cost of $7,400 per man-month (excluding local cost). ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 29% August 1979 • - 0 -·