Announcement of Morocco First Municipal Finance Project on June 10, 1993

FOR IMMEDIATE RELEASE World Bank 1818 H Street. N.W.. Washinton. D.C. 20433. U.S.A.* Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 93/104 MENA CONTACT: JEANNIE YAMINE (202)473-2318 MOROCCO: FIRST MUNICIPAL FINANCE PROJECT The following is information on a project approved by the World Bank's Board. DATE: June 10, 1993 WORLD BANK GROUP SUPPORT: World Bank loan: $104 million. The World Bank loan is for 20 years, including five years grace, at the Bank's standard variable interest rate. TOTAL PROJECT COST: $182.3 million OTHER PROPOSED FINANCING: Subborrowers' resources, $35.3 million; Fonds d'Equipement Communal (FEC), $42 million; Government of Morocco, $1 million. BENEFICIARIES: Local governments of the Kingdom of Morocco PROJECT DESCRIPTION: The project aims at improving the efficiency of local investments, distribution of the local share of the value-added tax (VAT) among local governments, availability and delivery of local services, and management of the local sector. It includes: a. Funding for local investments in roads, water and sewerage, solid waste, and productive and recreational facilities ($176.5 million). b. Technical assistance, training and equipment to improve FEC's institutional capabilities ($0.8 million). c. Training for local governments' staff and related consultant services ($2.3 million). d. Technical assistance, training and equipment to improve intergovernmental finance, and the central government management systems related to the local sector ($2.7 million).