Morocco - Health Development Project

Document of The World Bank FOR OFFICIAL USE ONLY Rq_t No. P-4079-MOR PRPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO US$28.4 MILLION TO THE KINGDCM OF MOROCCO FOR A HEALTH DEVELOPMENT PROJECT May 15, 1985 Tis document has a rstried distibution ad may be used by recipientb y in the perfo ee of their officid dutes Is contests may o oterwise be disdosed withou World Bnk authoriztion.  KINGDOM OF MOROCCO CURRENCY EQUIVALENT Calendar 1984 Aoril 19, 1985 Currency Unit - Dirhams (DH) DR US$1.00 = DE 8.90 9.47 DR 1.00 = US$0.112 0.106 FISCAL YEAR Sanuary 1 - December 31 GLOSSARY OF ABBREVIATIONS CNSS Caisse Nationale de la S6curite Sociale (Social Security Fund) CP Central Pharmacy DAT Direction des Affaires Techniques (MOPH) Directorate of Technical Affairs DICP Division de 1'Infrastructure Chargee de la Planification (Department of Infrastructure in charge of Planning) DSU Drug Supply Unit ENAP Ecole Nationale d'Administration Publique (National College of Public Administration) FP Family Planning IEC Information, Education, and Communication MOPH Ministry of Public Health ONEP Office National de 1'Eau Potable (National Office of Water Supply) PHC Primary Health Care PIU Project Implementation Unit  FOR OMCUAL USE ONLY KINGDOM OF MOROCCO HEALTH DEVELOPMENT PROJECT LOAN AND PROJECT SUMKARY Borrower: The Kingdom of Morocco Amount: US$28.4 million equivalent. Terms: Payable in 20 years, including five years of grace at the Bank standard variable interest rate. The Borrower would bear the foreign exchange and interest rate risks. The loan would include tne refinancing of a PPF of about US$0.075 million equivalent. Project Description: The Project would assist the Ministry of Public Health (MOPH) to shift from an urban-based hospital-oriented health system to a more cost-effective system of primary care. The project would include: (a) the strengthening of primary care and basic health services, including family planning, in three provinces; (b) the improvement of MOPH management; (c) the strengthening of training and Information, Education, Communication (UEC) programs; and (d) the improvement of the supply of basic drugs. The main benefits of this first project in the health sector are to provide the Government with a cost-effective model for primary care and family planning, while raising the capacity of the central MOPE to improve the logistics and control the costs of the health care delivery system. The main risk of the project relates to the stringency of the HOPH recurrent budget. This risk is reduced by minimizing incremental operating costs while reducing unit costs of the services, and by the strong Government commitment to the project. Project Cost Estimate: a/ (USS million) LocaL.-I Foreign Total A. Development of Basic Health Services 12.5 10.6 23.1 B. Strengthening of MOPH Management 0.8 0.9 1.7 C. Strengthening Training and IEC Capacity 0.5 1.1 1.6 D. Improvement of Drug Supply System 2.4 4.4 6.8 Total Base Costs 16.2 17.0 33.2 Physical Contingencies 1.2 1.6 2.8 Price Contingencies 5.9 5.7 11.6 Total Project Costs 23.3 24.3 47.6 a! Includes US$7.1 million equivalent in taxes. Thisdocument h