Morocco - Rabat Urban Development Project

RETURN TO Document of REPORTS D'S IL E COPuY The World Bank FOR OFFICIAL USE ONLY Report No. P-2224-MOR REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE KINGDOM OF MOROCCO FOR THE RABAT URBAN DEVELOPMENT PROJECT February 15, 1978 This document has a restricted distribution and may be used by recipients only In the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  Currency Equivalents US$1.00 DH 4.4 DH 1.00 US$0.222 Fiscal Year Calendar Year ABBREVIATIONS BCP Banque Centrale Populaire (Commercial Bank) BNDE Banque Nationale pour le Developpement Economique (Development Bank) BRP Banque Populaire Regionale (Regional Branch of BCP) CIH Credit Immobilier et Hotelier (Housing and Tourism Bank) RED Regie autonome intercommunale de distribution d'eau et d'electricite de Rabat-Sale (Rabat Water Company)  FOR OFFICIAL USE ONLY KINGDOM OF MOROCCO RABAT URBAN DEVELOPMENT PROJECT LOAN AND PROJECT SUMMARY Borrower: Kingdom of Morocco. Loan Amount: US$18.0 million. Terms: 20 years including five years of gracc at 7.45 percent per annum. Prolect Description: This first Bank-financed urban project in Morocco is aimed at improving the living conditions of urban poor in Rabat. It would introduce solutions to some of the most difficult problems facing the Moroccan urban sector: inadequate urban planning, financing and management. The project consists of five interrelated components: (i) compre- hensive squatter upgrading in the three quarters of Douars Doum, Maadid and Haija. This upgrading will include rehabilitation and extension of infrastructure, improvement and expansion of commercial installations and hoae improvements through self-help; (ii) an experimental Sites and Services/Housing scheme; (iii) an employment generation program to create about 2,500 new jobs in the project area; (iv) community services equipment to improve garbage collection, fire fighting and emergency services; and (v) technical assistance to strengthen the institutional arrangements and technical capabilities of the executing agencies. The main risks faced by the project would be: (i) poor cooordination among different agencies involved in project implementation and inade- quate staffing provisions; (ii) delay in land acquisition to permit project implementation in the proposed time frame; and (iii) the risk of the population in the project area not accepting proposed project details, especially cost recovery. However, the probability of these risks is considered minimal. Estimated Cost: Local Foreign Total ---------- US$ million ----------- 1. Squatter Upgrading 8.97 5.31 14.28 2. Experimental Sites and Services/Housing Scheme 3.36 2.00 5.36 3. Employment Generation Program 5.68 3.68 9.36 4. Community Services Equipment 0.16 0.75 0.91 5. Technical Assistance 0.11 0.42 0.53 6. Contingencies 3.79 3.39 7.18 TOTAL EXPECTED PROJECT COSTS 22.07 15.55 37.62 This document ha a resiricted distribution and may be used by recipients only in the performance of their offcial duties. Its contents may not otherwise be disclosed without World Bank authorization.  Einaa~cing Plan: Equity Estimated Bank Govt. Financing Costs