Announcement of Morocco Upgrades Highways, Improves Sector Planning on February 8, 1990

:.,H0LD,t0Rk4LEASt '.Vorld Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. @Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 90/52 Contact: Fawzi Rihane (202 473-2675 Marjorie Messiter (202) 477-3642 MOROCCO UPGRADES HIGHWAYS, IMPROVES SECTOR PLANNING WASHINGTON, February 8, 1990 -- Morocco will improve its highway network and reduce transportation costs through a project that is being supported by a $79 million loan from the World Bank. Morocco's highways, which carry 90 percent of inland passenger traffic and about 70 percent of freight traffic, have deteriorated because of a lack of funds for maintenance. * The project includes rehabilitating about 1,000 kilometers of roads, ntaining other roads and constructing bridges. Funds are also provided for rural transport development studies, technical assistance and training to strengthen the planning capabilities of the Ministry of Public Works and the Ministry of Transport, and construction of a national center for vehicle inspection and testing. The maintenance program is expected to reduce transport costs. Improved sector planning will optimize the use of scarce maintenance funds and prevent further deterioration of the country's highways. As part of the project, an action plan has been developed to eliminate economic distortions in the highway sector and reduce overall transport costs by deregulating the trucking industry and changing user taxation policies. The World Bank loan is for 20 years, including five years of grace, with a variable interest rate, currently 7.75 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balance. Note: Money figures are in U.S. dollar equivalents.