Announcement of Morocco to Develop Forest Resources with World Bank Assistance on March 25, 1982

FOR IMMl:DI-A H RE! l A\ · . •, ' () '~orldBank 18.18 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202} 477-1234 BANK NEWS RELEASE NO. 82/62 Contact: Helhe~ Salman March 25, 1982 (202) 477-5328 MOROCCO TO DEVELOP FOREST RESOURCES WITH WORLD BANK ASSISTANCE Morocco will increase wood production for industry and fuel from its forests along the Atlantic coast under a first forestry project assisted by the World Bank. A loan of $27.5 million will enable the newly expanded pulpmill in Sidi Yahia to operate at full capacity. Through replantings, the $65 million project will provide raw materials to allow an increase in the output of the mill from 83,000 to 100,000 air-drJed tons a year. This will in turn enable an increase in exports of puip valued at $6.3 million a year. The project wi 11 a 1so provi dt.~ about 470,000 ,.cubic meters of coniferous wood for industrial us~\, some of which is now imported. It will also make available more fuel wood\and thus reduce the import of liquefied 1 petroleum gas for domestic use. The project calls for destumping of about 30,000 hectares of eucalyptus plantations and degraded cork oak forests and replanting with fast growing species of eucalyptus, pines, and acacia. Some 40 kilometers of roads will be constructed and about one third of existing forest tracks will be upgraded to allow year round access by vehicles. Pasture improvement will be made in part of the degraded cork oak forest Mamora to compensate for loss of forage now available on the 10,000 hectares to be replanted under the project, which would be closed off to grazing. A series of studies will be carried out on resource management, sylvicultural research, forest inventory, and planning. Other studies will deal with financing and forest exploitation (including ,~1harcoa1 making). Consultant services to be provided include those of a ry)nge management officer for two years and short-term consu1tants. ,/ Ii '! The forestry project was indentified by the World/i'.Bank/Food and Agriculture Organization CoQ?etative Program. ;, / ff The Wor1d Bank loan i~ for 17 years, intluding four years of grace, with interest at 11.6% a y~ar. The loan also carries an annual commitment charge of 0.75% on undisbursed balances, and a front-end fee of 1.5% on the amount of the loan. NOTE: Money figures are e~pressed in U.S. do11ar equivalents.  T E C H N I C A.. l D.cA. T A PROJECT: Forestry COUNTRY: Morocco ·TOTAL COST: $65. 1 mi 1 lion ft "8ANK Ft NANCI NG: J $27 .5 mi 11 ion for 17 years, including fou.r..~:years of gr,ce., at 11.6%1:)er annum, and annual conmitmerit charge of 0,75% on undisbursed balances, ahd a front-end fee of 1.5% on the amount o·V the. 1oan /~:::· (l OTHER FINANCING: Government of Morocco, $37. 6 .m·i 11 ion IMPLEMENTING ORGANIZATION: Forestry Department Ministry of Agriculture Rabat, Morocco TELEX: 31932 MINAGRO ·.t.\ ·i PROJECT DESCRIPTION: ltc;consfsts of destumptng of about 30,000 ha ~f eucalyptus . .;) ·plantations and degraded cork oak fprests and replanting with 1 fast growing species of eucalyptus, pines, and acacia; upgrading of 140 km of access roa.d.$, } construction of 40 km of new roads, road maintenance, and extension of the firebreak n4:}~"!· work; pasture improvement over 2,600 ha; studies on technical,· instituti9nal, ~md fina·· · l .~ issues; administrative and logistical support; and techntcat assistance and training~ · " PROCU.REMENT: Contracts for mech~nical destumping and contr~cts estimated tQl cost over $2 milltion for road construction will be awar~ed after int~rnational competitive bidding fol lowing Bank guid~l Ines. Contracts for vehicles'·:· and equipment wi 11 be grouped as far as practicable; those in excess of $150,000 each wi 11 _': be awarded after international competitive bidding following Bank guidelines. · :· ' . ·.. CONSULTANTS: The services of a range managemeni officer (two yeijrs) and short-term consultant services will be provided, • I ECONOMIC RATE OF RETURN: 22% ESTIMATED COMPLETlbN DATE: 1987 - 0 -