Morocco - Second Sebou Irrigation Project

Document of The World Bank FOR OFFICIAL USE ONLY Repwt Ne. 5613 KINGDOM OF MOROCCO SEBOU II DEVELOPMENT PROJECT (LOAN 1018-NOR) PROJECT COMPLETION REPORT April 22, 1985 Tbis document has a restricted distributii and may be used by reciints only in the perfornance of their official duties. Its cotents may not otberwise be disclosed without World Bank authorization j  'GEITS AND MEASURES Metric System ABBREVIATIONS BNDE : Industrial Development Bank (Banque nationale pour le developpement &economique) CLCA : Local branch of National Agricultural Credit Bank (Caisse locale de credit agricole) CMV : Development Center (Centre de ruise en valeur) CNCA : National Agricultural Credit Bank (Caisse nationale de credit agricole) DMV : Development Department of HARA (Direction de mise en valeur) DRA : Department of Agricultural Research (Direction de recherche agricole) EAPD : World Bank Economic Analysis and Projections Divrision INRA : National Institute for Agricu4ural Research (Institut national de recherche agricole) .MARA : Ministry of Agriculture and Agrarian Reform (Ministere de l'agriculture et de la reforme agraire) NEDECO : Netherlands Engineering Consultants O & M : Operation and Maintenance ONE : National Electricity Office (Office national de l'electricite) ONEP : National Office for Water Supply (Office national de l'eau potable) ONT : National Transport Office (Office national de transport) ORDMVA : Regional Agricultural Development Office of MARA (Office r6gional de mise en valeur agricoie) ORMVAG : Regional Agricultural Development Office of the Gharb (Office regional de mise en valeur agricole du Gharb) SODEA : Farm Development Corporation SOGETA : Agricultural Land Management Corporation SUNACAS : Sebou Nationa'l Sugarcane Factory Company (Sucrerie nationale de canne du Sebou)  FOR OMCIAL USE ONLY KINGDOH OF MOROCCO SEBOU II DEVEOPHENT PROJECT (Loan 1018 - NOR) PROJECT COMPLETION REPORT Table of Contents Page PREFACE BASIC DATA SHEETS HIGHLIGHTS ii I. BACKGROUND 0N PROJECT AREA 1 II. FORW ULATION 1 * Origin 1 e Issues Raised During Preparation and Appraisal 4 -- Feasibility of Sugarcane Cultivation 4 _ Land Tenure 5 III IMPLEMENTATION AND PROJECT FORMULATION 5 , Design Changes 5 =- Flood Protection Dikes 5 - The Amendment to Sebou II 6 . Procurement and Construction: & - Original Sebou II Project 8 The Sugarcane Factory 8 -- Study and Treatment of Factory Effluent 9 -- Study of Schistosomiasis (Bilharzia) 9 -- Bridge and Roads 9 . Procurement and Construction; B - The Amendment to Sebou II 10 - The National Sugarcane Center (renamed Sugarcane Technical Center) 10 -- Agricultural Development Centers and Milk Collection Centers - 11 -- Staff Housing for the Sugarcane Factory 11 -- Sugarcane Transport Equipment 12 IV. OPERATIONS AND INSTITUTIONAL PERFORMANCE 12 . The Sugar Factory 12 -- Operations 12 - By-products 13 Financial Results 14 -- The Causes of Financial Losses 14 -- Financial Remedies 15 - Audit 16 ITis document has a restricted distribution and may be used by reipients only in the performance of their offici duties. Its contents may not otherwise be disclosed without World Bank authorization.  Page . Production, Development, and Transport of Sugarcane 16 -- Production and-Irrigation 16 -- Sugarcane Technical Center 17 Mechanization of Harvesting, Loading and Transport of Cane 18 Agricultural Development Centers 19 . Milk Collection Centers 19 . Roads and Sebou River Bridge 20 V. ECONOMIC EVALUATION 20 VI. BANK PERFORMANCE 24 VII. CONCLUSIONS AND LESSONS LEARNED 25 ANNEXES ATTACHEENT: Borrower s Comments MAPS  KINGDOM OF MOROCCO SEBOU II DEVELOPMENT PROJECT (Loan 1018-MOR) PROJECT COMPLETION REPORT PREFACE The Project under review was a modification of the Rharb Sebou Irrigation Project (Ln. 643-MOR) for US$46.0 million which provided for the construction of the Idriss I Dam on the Sebou River and the introduction of irrigated sugarcane cultivation in the Sebou flood plain. Per capita sugar cons'mption is high in Morocco and sugar is a major import. Sebou II provided for the construction of a sugarcane factory and other complementary investments to help develop the sugarcane indsstry. The Loan for Sebou II (Loan 1018-MOR for USS32.0 million) was signed in June 1974 and closed in Alugust 1983. An amount of US$6.0 million was cancelled. This Project Completion Report (PCR) deals with activities financed under Sebou II, but reference is made to the formulation and implementation of Sebou I and how those stages led to the proposal and definition of Sebou II. The findings of the Project Performance Audit Report for the Rharb Sebou Irrigation Project (Report NO. 3942) contributed significantly to the analysis of the findings in this present report. The PCR was prepared by staff of the Europe, Middle East and North Africa Region. No separate audit was carried out for the Project by OED staff. The PCR is based on two completion re orts prepared by the Regional Agricultural Development Office of the Gharb