Morocco - Basic Education Project (Social Priorities Program)

Document of The World Bank FOR OFFICIAL USE ONLY Report No. P-6766-MOR MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN THE AMOUNT EQUIVALENT TO US$54.0 MILLION TO THE KINGDOM OF MOROCCO FOR A BASIC EDUCATION PROJECT (SOCIAL PRIORITIES PROGRAM) May 9, 1996 Human Resources Division Maghreb and Iran Department Middle East and North Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Currency Unit: Dirham (DH) US$1.00 = DH8.3 (as of April 1996) GOVERNMENT FISCAL YEAR January 1 to December 31 (until 1995) July 1 to June 30 (as of 1996) ABBREVIATIONS AND ACRONYMS BAJ Barnamaj Al Aoulaouaiyat Al Ijtimaiya (Social Priorities Program) CAS Country Assistance Strategy CSSS ComirW de Suivi de la Stratgie Sociale (Social Strategy Steering Committee) EU European Union ICB International Competitive Bidding LSMS Living Standards Measurement Survey MEAS Ministre de I'Emploi et des Affaires Sociales (Ministry of Employment and Social Affairs) MEN Ministere de 1'Education Nationale (Ministry of National Education) NCB National Competitive Bidding PCS Programme des Cantines Scolaires (School Canteen Program) PDP Programme de D6penses Publiques (Public Expenditure Program) PMIS Program Management Information System PN Promotion Nationale (National Agency for Labor Promotion) PPS Programme de Priorites Sociales (Social Priorities Program) SAP Sectoral Action Plan SDS Strat9gie de D&veloppement Social (Social Development Strategy) SPP Social Priorities Program VAT Value added tax ZIP Zone d'Intervention Prioritaire (Priority Intervention Area) FOR OFFICIAL USE ONLY KINGDOM OF MOROCCO BASIC EDUCATION PROJECT (SOCIAL PRIORITIES PROGRAM) Loan and Project Summary Borrower: Kingdom of Morocco Implementing The Ministry of National Education (MEN), Agencies: The Ministry of Employment and Social Affairs (MEAS) The Ministry of Interior (local communities) Poverty: Program of Targeted Interventions Amount: US$54.0 million equivalent Terms: Twenty years, including a five-year grace period, at the IBRD standard variable interest rate Commitment Fee: 0.75% on undisbursed loan balances, beginning 60 days after signing Financing Plan: (US$ million) Foreign Local Total IBRD 37.5 16.5 54.0 Government - 42.2 42.2 France 1.5 - 1.5 Total 39.0 58.7 97.7 Net Present Value: N\A (cost-effectiveness calculations) Environmental Rating: C Staff Appraisal Report: No. 15074 Map No.: IBRD 27640 Project ID No.: 5501 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE IBRD TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE KINGDOM OF MOROCCO FOR A BASIC EDUCATION PROJECT (SOCIAL PRIORITIES PROGRAM) 1. I submit for your approval the following memorandum and recommendation on a proposed loan to the Kingdom of Morocco for the equivalent of US$54.0 million to help finance the Basic Education Project (Social Priorities Program). The loan would be at the Bank's standard variable interest rate, with a maturity of 20 years, including five years of grace. 2. Country/Sector Background. Over the past decade, Morocco has instituted reforms designed to achieve macroeconomic stability and to gradually move the country away from a predominantly administered economy towards one that is more market-driven and outward-oriented. Yet, despite significant progress, annual growth rates, which averaged about 4% during the last decade, fell well below expectations and were too low to absorb the country's growing labor force. Labor productivity has recently eroded, and international competitiveness has not radically improved. The situation has been further exacerbated by the recent drought. Performance has been particularly disappointing in the social sectors, even though between 1985 and 1991 the share of Morocco's population living below the poverty line fell from 21 to 13%, and the GNP per capita rose by about 30% and presently hovers at around US$1,100. Morocco's indicators in health, education, literacy, and access to safe water continue to lag behind those of economically comparable countries. A fifth of the population still live in poverty or near-poverty, urban unemployment rates have reached 20%, and rural women are still economically and socially marginalized. Urban/rural and regional variations are striking, and the gap dividing them is deepening. In 1991, 72% of all poor lived in rural areas as compared to 70% six years earlier. 3. The Poverty Assessment Report found a strong link between poverty in economic terms and such social ills as low literacy, education, health, and nutrition levels and high fertility rates. That report, and other studies, also found a strong correlation between income levels and degree of access to basic social services. Yet. until recently there was no real coordination of the various social policies and programs nor any strong link between this disparate set of sectoral actions and the macroeconomic framework. There was, moreover, no visible political will to address the problem of lagging social sector performance. 4. Despite a steep climb in enrollments at all levels since its independence, Morocco's education system is still plagued by major deficiencies, which are curtailing the country's prospects for long-term economic growth. 5. Low literacy levels. Although the overall adult illiteracy rate in Morocco dropped from 75 to 58% between 1971 and 1991, disparities among different societal groups within Morocco remain striking: 70% of women are illiterate as compared to 44% of men, and nearly 77% of the rural population is illiterate as compared to 38% of urban dwellers. The Government has carried out several large-scale literacy campaigns over the last twenty years, but most of them were not well- targeted, and their impact has been small. 6. Lagging primary enrollments. Including children in modern preschools and Koranic schools, the overall enrollment was just 41 % from ages four to twenty-three compared to the 51 % rate averaged by the countries in the reference group. After a decline in the 1980s, enrollments in 2 primary education have increased again since 1993. Still, Morocco's 69% primary enrollment rate lags shockingly behind the 87% averaged by the reference group. Rural girls' primary enrollment rate was 34% in 1993-94, and female enrollments were far more sensitive than male enrollments to both school-related (such as latrines, drinking water, and canteens) and nonschool-related variables (such as family size and composition, domestic chores, and economic status). Pilot projects aimed at promoting Koranic preschools, have yielded encouraging results and suggest that these institutions represent a potential vehicle for promoting schooling and improving achievement in primary education. 7. Low quality and internal efficiency. There has been a decline in learning performance in basic subjects overall and weak achievement in higher-order skills, with tremendous disparities between urban and rural areas. The low quality of instructional materials in most schools (only half the teachers had the required teachers' guides) reflects the low level of expenditure on nonsalary inputs. Urban children outperform their rural counterparts, completion rates are lower for rural children than for urban ones, under-investment in education is more pronounced in rural than in urban areas, and boys do better than girls. 8. Inefficient resource use. In 1995 the central government allocated 25% of its budget (debt not included) to the Ministry of National Education (MEN) compared to an average of 17% for the reference group. Combined with the steep increase in unit costs (US$200 at the primary level, US$820 at the secondary level), skewing support toward the upper levels has the effect of a large- scale transfer of public funding to the least needy. Primary education's relative share is only 35% (as against 43% in the reference group) while that for secondary education is high (46% as against 23%). The teaching and nonteaching staff wage bill makes up 97% of the total operating budget for primary education and 95% of the budget for secondary schooling. In 1993-94 the student:teacher ratio was as low as 28:1 for primary, and 13:1 for secondary schools. The primary education student:support-staff ratio fell from some 290:1 in 1989-90 to 180:1. In 1993-94 at the secondary level, 15% of teachers were assigned to administrative or financial duties. The reasons for this evolution include the low demographic density in rural areas, the artificial creation of jobs in schools during the 1980s, the fact that teacher training-school graduates far outnumber the actual demand for teachers, and the lack of transparency in personnel assignment and management. 9. Future Strategy. The Government has started to focus on social issues in a more concerted manner. In 1993 it issued the Social Development Strategy (SDS), which sets forth clear directives aimed at extending basic social services to the poor and increasing their participation in economically productive activities. Recognizing prevailing budgetary constraints, the strategy stresses the need for inter- and intra-sectoral reallocation of resources. It also advocates action to promote employment and emphasizes that a strong and appropriate administrative vehicle and reliable statistical monitoring system are required for the implementation of its recommendations. Following the appraisal of the Social Priorities Program (SPP), the strategy was updated, formally reendorsed by the Government, and officially conveyed to the Bank. The creation of the Ministry of Population, which is supposed to take over the supervision of social programs, the King's request to the Bank to frame a long-term vision statement of the education sector and his October 1995 address to the Parliament following reception of the Bank's statement, both point to the fact that concerns for the social situation are now taken seriously and emanate from the highest levels of the power hierarchy. Recent initiatives taken and/or being prepared by the two ministers in charge of education to rationalize their respective subsectors suggest that actions will follow. 10. More specific recent developments are also encouraging: (a) concerned by the poor results of levels of public spending in education, the Government has formulated a catch-up strategy for 3 targeting female enrollment in order to boost the overall enrollment rate from its present 58% in rural areas to 85% by 2000-01. The approach rests on three pillars: (i) targeting resources on the most disadvantaged groups and geographical regions as an attempt to address the problem of rural school enrollments within the context of a broader strategy for reducing out poverty; (ii) improving efficiency and quality and adapting the education system to the needs of sparsely populated rural areas by bringing schools closer to the students, reorganizing schools on the model of a multigrade system, and making available the most effective school inputs; and (iii) addressing nonschool factors which undermine demand for schooling. (b) In addition, the MEN has developed a Sector Action Plan (SAP) for basic and secondary education that seeks to correct distortions in the allocation and management of education resources, and to generate savings by improving efficiency, and by balancing the resources allocated to basic and secondary education. 11. Project Objectives. The proposed project is part of the Social Priorities Program I (SPP I, or BAJ 1, in Arabic acronym), initiated to assist the Government in the implementation of its strategy to increase the poor's access to basic social services, enhance basic rural infrastructure, and provide employment opportunities to the most vulnerable groups, while bolstering Government awareness of poverty-related issues. SPP I is a multisectoral program conceived as a set of three independent but complementary projects implemented simultaneously. All three share the same broad objectives, and would be implemented in the same rural areas of the thirteen poorest provinces, where 27% of the total population (and 43% of the rural population) currently live. 12. The specific objectives of the proposed project are to contribute to the Government's efforts to boost its educational system in both qualitative and quantitative terms to make its performance correspond more closely to that in economically comparable countries, and to strengthen human capital by making education and literacy available to populations that have hitherto been deprived of them. The project would have an impact on both the supply of and demand for education, and would affect institutions both upstream and downstream of the formal education system. 13. Project Description. The first component of the proposed project (54% of total base costs) would improve access and retention rates in primary schools in remote rural areas by expanding supply through: (a) building and equipping multigrade schools, (b) completing the infrastructure of satellite schools, (c) developing a new methodology and teaching materials for multigrade teaching and organizing teacher preservice and inservice training, (d) reinforcing on a selective basis the school canteen program, and (e) improving Koranic preschool facilities. The second component (18% of total base costs) would reduce the gap between the school participation rates of boys and girls by addressing the various demand factors presently affecting girls' enrollments through (a) distributing textbooks and supplies free of charge, (b) installing latrines and wells in schools, (c) rehabilitating primary school facilities, and (d) organizing targeted awareness campaigns to promote schooling for girls in rural areas. The third component (22% of total base cost) would increase education quality by providing a standard set of instructional materials to each school, setting up an "innovation fund" to promote school-based projects, and provide housing for teachers in remote areas. The fourth component (4% of total base costs) would improve the performance of the Ministry of Employment and Social Affairs' (MEAS) literacy programs through the design and implementation of a pilot program to test a new type of literacy campaign linked to employment promotion activities. The fifth component (2% of total base costs) would provide technical assistance, training, and equipment to strengthen the MEN's capacity to implement, monitor, and adjust its Sectoral Action Plan which would address the problem of inefficiencies in resource allocation and use. 4 14. Project Implementation. Project activities would be implemented by the Ministry of National Education (MEN) for all components but the literacy component which would be implemented by the Ministry of Employment and Social Affairs (MEAS). Project activities would be implemented at three levels: (a) at the central level, by the concerned line ministries' departments; (b) at the provincial level, by representatives of the central ministries; (c) at the local level, by the communities themselves. Each ministry would appoint an SPP project coordinator. The project would include the setting up of a Program Management Information System (PMIS) so that SPP activities are implemented in a coordinated manner, both at the grass-roots level and in the central ministries. 15. The Secretariat, located within the Ministry of Population, will be responsible for monitoring the objectives of the SPP and would also be a liaison unit between technical ministries, the social strategy steering committee (CSSS), and the donor community. The Secretariat will have the overall responsibility for the careful programming and coordination of inputs from the implementing agencies at the central, provincial and community levels for the three SPP projects and for ensuring that the PMIS is in place and being used adequately by all implementing agencies concerned. At the provincial level, an SPP focal point would be appointed to coordinate and monitor the implementation of all of the SPP activities delegated by the various technical ministries and to ensure that the PMIS data and information is kept up to date. In addition, an Observatory for Monitoring Social Conditions was set up, as part of the Coordination and Monitoring of Social Programs, and Labor Promotion Project (itself part of the SPP), to assess the impact of the SDS on household living conditions. 16. Project Sustainability. The additional burden associated with the project is a full part of the price to be paid to reach universal access to primary education by 2010. Sustainability of such a burden would depend on factors exogenous to the sector such as the economic growth rate, as well as on sectoral factors and political commitment. Given the severity of the enrollment situation and evidence that direct costs are a real obstacle to girls' enrollment in rural schools, the Education SAP does not recommend that user charges be introduced before the post-primary level. To promote a more rational use of available resources, the SAP has also recommended a package of measures for improving the MEN staff management system. These measures would allow to set more reasonable student:teacher ratios at the upper-basic and secondary levels, which would generate substantial savings over the medium term. These savings could then be added to those gained from instituting multigrade schools. Yet, public spending on primary education would still need to be increased by an estimated annual rate of about 5% during the next six years, and both inter- and intra-sectoral reallocations would be required. The growing awareness that primary education is a genuine public good and one of the core activities for which the- Moroccan state has full responsibility should help to ensure this effort's sustainability. Donors are also well aware of Morocco's lagging performance in the education sector and might well increase their contributions tQ help the country mount a sincere effort to overcome it. 17. Lessons Learned from Previous Bank Involvement. The main general lessons to be drawn from the past and ongoing Bank supported operations in Morocco's social sectors are as follows: (a) reforms in the social sectors should not be overly ambitious because of their immense impact on large groups and the political risks attached to them; (b) a good management information system and simple disbursement procedures must be in place, especially when cumbersome local financing circuits are to be used in the case of decentralized activities; (c) it is critical to seek the early involvement of all constituents who will play a crucial role during project implementation at the provincial and local levels: (d) finally, realistic budgetary envelopes have to be projected (and committed) to ensure the sustainability of sectoral programs and actions. More specifically, the two 5 projects currently being implemented (Rural Primary Education Project, Loan 3026-MOR, and Rural Basic Education Project. Loan 3295-MOR), as well as the former Education Sector Reform Program (Loan 2664-MOR) strongly demonstrate that if demand factors are not addressed, it is unlikely that school attendance in rural areas will substantially increase. They also point at the critical role of a well-staffed implementation unit, well integrated in the national administrative structure, and at the importance of a clear definition of the respective responsibilities of each concerned agency. 18. Rationale for Bank Involvement. The severe state of degradation of Morocco's social sectors underscores the urgent need for intensive, durable action such as the one devised in the SPP program. Bank support for such action is called for by the Country Assistance Strategy (CAS) which was last discussed by the Board on November 23, 1993, and which puts investing in people as a priority. Bank support for the social sectors would also accord with its parallel efforts to strengthen macroeconomic performance and encourage growth through private investment. The SDS, which the SPP would help implement, is fully in line with the Bank's strategy of poverty alleviation. Both the Poverty Assessment Report and the Country Economic Memorandum indicate that the role of the Bank in promoting the Government's social strategy and marshaling international and bilateral support for social programs would be critical to help Morocco succeed in the fight it is waging against poverty. 19. The Ministry of Education's SAP addresses all of the important issues facing the education sector and takes into account the conclusions of various recent studies, the Bank's general views on the sector, and the vision statement on education the World Bank recently addressed to the King. It advocates using an integrated package of interventions to reach target areas and populations. By opening up basic education facilities, making school attendance less expensive and easier for poor families, and linking literacy programs to productive employment promotion activities, the proposed project would contribute greatly to the overall alleviation of poverty-a primary Bank goal. The determination of the Government to act on rectifying both the school and nonschool factors that are presently undermining the demand for primary education in rural areas and its resolve to systematize cost-effective approaches to increase enrollments in these areas, deserve clear encouragement from the Bank, which has been recommending such measures for a long time. 20. Agreed Actions. Before negotiations (a) the Education SAP and the final list of selected project indicators were transmitted to the Bank. During negotiations, agreements was reached on: (a) Sector specific actions: (i) selection criteria. organization, and financing mechanisms for the School Innovation Initiative; and (ii) completion of an assessment of MEN personnel management procedures before December 31, 1997. (b) Financing: (i) agreement with the French Government regarding the parallel financing of part of the training for multigrade schooling; (ii) undertaking and updating each year a multiyear, rolling public expenditure program for the basic and secondary education sector, and transmittal of the program to the Bank before July 31 of each year, beginning in 1997; and (iii) provision of counterpart funds and establishment of individualized project lines in the budget of each concerned ministry, starting July Ist, 1996, (iv) retroactive financing. (c) Project implementation: (i) appointment of one SPP coordinator in the MEN and one in the MEAS, and of a SPP focal point in each target province by December 31, 1996; (ii) presentation to the Bank of an action plan to improve procurement, payment, and disbursements, based on the results of the study on fund flows, before March 31, 1997. and launching implementation of the plan after discussion with the Bank, no later than October 31, 1997; (iii) procedures and format to establish a proof of service. 6 (d) Project review: (i) organization of a joint mid-term project review, and presentation of a medium-term plan regarding the school canteen program by June 30, 1999; (ii) submission to the Bank, no later than September 30 of each year, beginning in 1997, of an annual implementation report, including a review of project implementation progress based on selected indicators, projected sector and project expenditures for the year and programs for the project activities in the selected provinces; and (iii) baseline and target values of selected project indicators. 21. Before Board presentation, the following stipulation has been complied with: formal establishment of the Observatory for Monitoring Living Conditions. 22. Poverty Category. The proposed project is a "Program of Targeted Interventions". It is part of the SPP Program whose entire justification and overarching objective is poverty alleviation. All activities under the proposed project would benefit rural areas in the thirteen poorest provinces of the country, and would be mostly targeted on girls. The project would boost girls' school attendance by making schools closer, better equipped, by reducing direct costs of schooling, and by improving local environment factors which impinge upon access and retention. The increase of the level of education in rural areas would be a central part of the overall SPP efforts to cut the roots of poverty in these areas. 23. Environmental Aspects. The proposed project was reviewed under the procedures specified in O.D.4.00, Annex A: Environmental Assessment and determined to be in screening category C, which includes projects that do not normally result in significant environmental impact. No Environmental Assessment, therefore, would be conducted for this project. 24. Participatory Approach. Project preparation has benefited from the input of various participatory approaches, including the results of the Bank participatory study on women, and the survey conducted by the MEN in one thousand schools and families of the Kingdom to assess the needs at the local level. In addition, one of the pillars of the project is to address demand factors which have until now largely been ignored. Finally, MEN staff at the provincial level have been widely consulted by central authorities during project preparation. Stakeholders' views would also be sought during project implementation through the beneficiary assessments to be conducted by the Secrtariat. 25. Project Benefits. The construction, rehabilitation, and equipment of schools in targeted rural areas of the thirteen most deprived provinces of the country should allow the system to accommodate about 65,000 new pupils each year by the end of the project, and raise primary enrollment rates to 85%. The reduction of direct and indirect costs, the better mix of educational inputs, the higher quality education offered, and the measures used to deal with various nonschool factors affecting girls' attendance should also increase demand for primary schools and lower dropout rates for rural children. These benefits would also compound those derived from the other two SPP projects, which would be implemented concurrently in the same communities, strengthen and diversify the provision of other basic services. Taken together, the projects would improve access to basic services and reduce poverty over the longer run. The implementation of the SAP would also improve efficiency at the secondary level of education, which would free up resources for use at the primary level. Finally, experiments under the literacy component should help to increase the sustainability of skills acquisition. 26. Risks. A first risk is related to the difficulty to bring structural changes in a conservative sector and administration, where any move can have far-reaching political effects. The relatively 7 modest scope of the reforms being pursued, the in-depth discussion of the sector action plan to be implemented, and the political will of the highest levels of the state will all help to relax this constraint, but this sector will always remain sensitive to external and internal shocks. A second risk lies in the extent to which this new operation would succeed in enticing the rural poor, and especially girls, into basic education. Because the project addresses the issue of school attendance from the demand side and takes into account the results of studies on the determinants of demand and of participatory assessments, this risk is likely to be greatly diminished. The risk associated with the weak implementation capacities of the MEAS in charge of the literacy component would be reduced through assistance to be provided by the more experienced MEN and the pilot nature of this component. Finally, the risk of insufficient counterpart funds would be addressed by the preparation of sectoral public expenditure programs. 27. Recommendation. I am satisfied that the proposed loan would comply with the Articles of Agreement of the Bank, and I recommend that the Executive Directors approve it. James D. Wolfensohn President Attachments Washington D.C. May 9, 1996 Schedule A Page 1 of I MOROCCO BASIC EDUCATION PROJECT (Social Priorities Program) ESTIMATED COSTS AND FINANCING PLAN Table 1. Project cost summary by component Cost (DH Million) US$ Million Local Foreign Total Local Foreign Total Component Access and retention 182.6 175.8 358.4 22.0 21.2 43.2 Red. gender gap 79.1 37.5 116.6 9.5 4.5 14.1 Quality 100.8 44.9 145.7 12.1 5.4 17.6 Literacy 15.8 8.5 24.3 1.9 1.0 2.9 Capacity building 4.9 6.5 11.4 0.6 0.8 1.4 Management 2.3 2.5 4.8 0.3 0.3 0.6 Total base cost 385.5 275.6 661.1 46.4 33.2 79.7 Physical 37.5 25.2 62.8 4.5 3.0 7.6 Price 64.1 22.6 86.7 7.7 2.7 10.4 TOTAL PROJECT COSTS* 487.2 323.4 810.6 58.7 39.0 97.7 Numbers rounded off to nearest decimal may not add up to totals shown. Table 2. Project Financing Plan (US$ million) Ministry of Local % of total project Funding Ministry of Employment and Communities costs excluding taxes Source Education Social Affairs (1) Total IBRD 33.0 2.0 19.0 54.0 64 France 1.5 - 1.5 2 Government 15.4 0.8 12.1 28.3 34 taxes 7.5 0.3 6.1 13.9 - Total 57.4 3.1 37.2 97.7 (1)This refers to the construction of educational facilities, to be implemented by communities, and financed by the Ministry of Interior. Schedule B Page 1 of 2 MOROCCO BASIC EDUCATION PROJECT (Social Priorities Program) PROCUREMENT AND DISBURSEMENT ARRANGEMENTS Table 1. Procurement arrangements (total including contingencies in US$ million equivalent) Procurement Method ICB NCB Other NBF Total Construction 35.5 35.5 (18.1) (18.1) Equipment 20.4 12.2 8.2 0.8 41.6 (14.0) (4.0) (4.4) (22.4) Food for school cantines 13.6 13.6 (11.5) (11.5) Technical assistance 1.5 0.7 2.12 (1.2) - (1.2) Training 1.0 1.0 (0.8) (0.8) Operating costs 3.8 3.8 Total financed costs 20.4 47.8 24.3 5.3 97.7 Total IBRD financing (14.0) (22.1) (17.9) - (54.0) Note: Figures in parenthesis are the amounts to be financed by the loan Schedule B Page 2 of 2 Table 2. Disbursement by category Category Schedule Category 1 Civil Works & (a) lump-sum for items on the basis of proof of service; Equipment (b) 100% of foreign expenditures and 40% of local expenditures for other items. Category 2 Equipement 100% of foreign expenditures and 70% of local expenditures Category 3 Training lump-sum for items on the basis of proof of service; and 100% for other items. Category 4 Consultants 100%. Services Table 3. Proposed disbursement schedule (US$ million) Disbursement Plan Project Year 1 2 3 4 5 6 Annual 2.0 10.0 13.0 13.0 10.0 6.0 Cumulative 2.0 12.0 25.0 38.0 48.0 54.0 Schedule C Page 1 of 1 MOROCCO BASIC EDUCATION PROJECT (Social Priorities Program) Timetable of Key Project Processing Events (a) Time taken to prepare the 29 months, from February 1993 entire SPP Program: to June 1995 (b) Prepared by: Government of Morocco with support from a PHRD Japanese Grant, and Bank assistance (c) First Bank mission: February 1993 (d) Appraisal mission: June 1995 (e) Negotiations: April 1996 (f) Planned date of effectiveness: October 1996 (g) List of relevant PCRs and PPARs: Credit/Loan No. Project PCR Date PPAR C0079-MOR Education Project 06/17/77 1637 C0266-MOR Education II 06/14/83 4545 L1220-MOR Education III 06/26/87 6845 L1681-MOR Education IV 03/16/90 8863 L2149-MOR Education V 02/22/91 - L2664-MOR Education SAL 05/17/91 12558 Schedule D Page I of 2 Status of Bank Group Operations in Morocco IBRD Loans and IDA Credits in the Operations Portfolio (As of March 31, 1996) Difference Loan or between actual Project Credit Fiscal Original Amount in US$ million and expected Id Number Year Borrower Purpose Bank IDA Cancellations Undisbursed disbursements/a Number of Closed Loans/Credits 106 Active Loans 5420 2798 1987 ONPT Telecommunications 12500 9.00 535 535 5452 2806 1987 BNDE, BCM, BMCE Industrial Export Finance 1 7000 1 32 271 1 86 5423 2825 1987 Kingdom of Morocco National Water Supply Rehab. 60.00 641 641 5499 2826 1987 Kingdom of Morocco Greater Casablanca Sewerage 6000 2026 1996 5428 2910 1988 Kingdom of Morocco Power Distribution 90.00 25.44 2544 5425 2954 1988 Kingdom ofMorocco Small & Medium Irrigation II 23.00 8.51 8 51 5480 3026 1989 Kingdom of Morocco Rural Primary Education 8300 18.22 1822 5468 3036 1989 Kingdom of Morocco Agricultural Research & Extension 2800 4.87 5.41 10.28 5473 3048 1989 Kingdom of Morocco Public Administration Support 2300 8.10 8.10 5458 3136 1990 BNDE, BCM, BCME. Industrial Finance 17000 1 02 7.11 2.32 CDM, WAFA 5437 3156 1990 Kingdom of Morocco Forestry Development 11 4900 2038 1938 5481 3168 1990 Kingdom of Morocco Highway V (Sector) 7900 397 3.97 5440 3171 1990 Kingdom of Morocco Health Sector Investment 10400 51.72 51.72 5459 3262 1991 Kingdom of Morocco Rural Electrification It I1400 95.77 86.37 5433 3283/84 1991 Kingdom of Morocco, Port Sector 13200 5.00 3344 -60.59 ONEP 5460 3295 1991 Kingdom of Morocco Rural Basic Education Development 145 00 106.57 6957 5495 3366-73 1991 BNDE, BCP, SGMB, CDM Financial Sector Development 235 00 11.40 2703 2236 BMCE, BC, BMCI 5438 3557 1993 ONPT Telecommunication Restructurmg 100.00 66.67 4267 5462 3587 1993 Kingdom of Morocco Second Large Scale Irrigation Impr 215.00 191.46 1346 5514 3618/21 1993 KingdomofMorocco. LandDevelopment 130.00 2400 57.36 -18.84 CIH, SGMB 5517 3616/17 1993 Kingdom of Morocco, FEC Municipal Finance 1 10400 67 11 -34 50 5504 3647 1994 Kingdom of Morocco Environment M 600 5.40 078 5486 3662 1994 CNCA National Rural Finance 10000 7899 46.49 5435 3664/5 1994 Kingdom of Morocco, ONEP Water Supply V 16000 150.44 23.71 5499 3688 1994 Kingdom of Morocco Irngated Areas Agric Services 2500 23 50 509 5493 3765 1994 Kingdom of Morocco ASIL II 121 00 61.00 4652 1322 5489 3901 1995 Kingdom of Morocco Secondary Roads 5760 57.60 321 5522 3928 1996 Kingdom of Morocco Financial Markets Development 25000 9294 12491 41303 3935 1996 Kingdom of Morocco Emergency Drought 10000 33.40 -52 88 TOTAL 2958.60 11761 1317.79 46655 Active Loans Closed Loans Total Total Disbursed (IBRD and IDA) 152320 4157 19 568039 Of which repaid 6463 222658 2291 21 Total now hed by IBRD and IDA 222579 249049 471628 Amount Sold 20 11 2011 Of which repaid 20 11 20 11 Total Undisbursed 131779 000 131779 ta Actual disbursements to-date less intended disbursements to-date as projected at appraisal Schedule D Page 2 of 2 Statement of IFC Investments in Morocco (As of February 29, 1996) Original Gross Commitment Undisburs Fiscal IFC PC Held by Held by mel Year Obligator Type of Business Loan Equity Participants Total JFC Participants Participants 1963 Banque Nationale pour le Dev Development Finance 44 25 2 70 39 99 86 94 7.12 1978 Econ (BNDE) 1984 1986 1980 Societe Mimere du Bou-Gaffer Mines 12.99 2 3S 15.34 235 (SOMIFER) 1987/ Credit Immobilier et Hotelier (CIH) Tourism 6750 --- 78.37 145 87 4396 952 1990 1988/ Settat Filature (SETAFIL) Textile Factory 347 1 67 5 14 4.70 1993 1989 Compagnie Maritime Maroco- Ferry Service 430 --- 200 6.30 0.31 Norvegienne (COMARIT) 1991 Societe ENNASR de Peche Agro-industry 2 46 --- 2 46 1.54 1992/ Cirients du Maroc Cement 2865 --- 10 12 3877 22.77 8.14 1994 (formerly CLI4SFI) 1992 International de Financement et Financial Services --- 3 82 3 82 3 30 0.86 et de Participation (INTERFINA) 1994 Societe Marocame d'Intermediation Capital Markets --- 050 050 050 050 1995 Financiere Euratlas Financial Services --- 009 009 009 009 1995 Euratlas Capital-Development Financial Services --- 4.00 4.00 4.00 400 1996 Societe Marocaine d'Intermediation Financial Services --- 065 065 0.65 065 Total gross commitments 163.62 1578 130.48 30988 Less cancellations, terminations, repayments and sales 8442 3.69 112 82 200 93 Pending Commitments ATTIJARI Company 056 056 Banque Marocame de Commerce Extricur, S A 300 17 50 20 50 (BMCE) PALM BAY 1 83 1.83 Total pending commitments 5 39 17.50 22.89 Total commitments held and pending commitments 79 20 17 48 35 16 131.84 Total undisbursed commitments 000 6 10 0.00 6.10 Schedule E Page 1 of 2 Morocco at a glance M. East Lower- POVERTY and SOCIAL & North middle- Morocco Africa Income Development dlamond* Population mid-1994 (millions) 26.4 267 1,097 Life expectancy GNP per capita 1994 (US$) 1,150 1,680 Average annual growth, 1990-94 Population (%) 2.0 2.8 1.4 Labor force (%} 3.0 3.2 1.6 GNP Gross Most recent estimate (latest year available since 1989) per enprnmary capita K. / enrollment Poverty: headcount index (% of population) 13 . . Urban population (% oftotal population) 48 54 54 Life expectancy at birth (years) 65 65 67 Infant mortality (per 1,000live births) 56 49 35 Child malnutrition (% of children under 5) 9 Access to safe water (% ofpopulation) .. .. 78 Access to safe water Illiteracy (% of population age 15+) 51 45 Gross primary enrollment (% of school-age population) 73 97 104 - Morocco Memale 1 5 - Lower-middle-income group KEY ECONOMIC RATIOS and LONG-TERM TRENDS 1975 1985 1994 1995 Economic ratios Gross domestic investment/GDP 25.2 27.1 21.0 21.6 Exports of goods and non-factor services/GOP 22.5 24.7 21.7 24.2 Openness of economy Gross domestic savings/GOP 14.3 18.1 15.9 15.0 Gross national savings/GDP 18 7 17.9 18.7 18.2 Current account balancelGDP -6.1 -9.3 -2.4 -4.0 Interest payments/GDP 0.6 3.8 3.5 .. Savings Investment Total debt/GDP 21.0 128.4 68.5 69.8 Total debt servicelexports 6.3 35.3 32.6 29 9 Present value of debt/GDP . .. 62.6 Present value of debtlexports .. .. 212.0 Indebtedness 1975-44 1985-95 1994 1995 1996-04 (average annual growth) GOP 4.4 2.9 11.5 -5.1 5.6 -Morocco GNP per capita 1.7 0.8 9.0 -7.6 3.8 -Lower-midrile-income group Exports of goods and nfs 4.2 4.7 5.1 4.8 8.6 STRUCTURE of the ECONOMY %of GDP) 1975 1985 1994 1995 Growth rates of output and investment (%) 15 - Agriculture 17.3 16.6 21.1 14.0 Industry 34.7 33.4 30.1 32.8 o - Manufacturing 16.6 18.6 16.7 183 5 Services 48.0 50.0 48.8 53.2 0 . 90 94 -5 - Private consumption 69.4 66.0 67.5 68.5 General government consumption 16.3 15.8 16.6 16.6 Imports of goods and non-factor services 33.4 33.7 26.8 30.9 -G0I -GDP (average annual growth) 1975-84 1985-95 1994 1995 Growth rates of exports and Imports (%) Agriculture 1.4 0.4 63.0 -36.5 20 - Industry 3.0 2.4 2.3 3.8 15 - Manufacturing 3.1 2.0 4.0 10 - Services 6.5 4.0 4.3 1.8 s- Private consumption 3.8 4.2 12.4 -2.5 -s 9a 92 93 94 as General government consumption 5.7 3.1 1.7 -5 1 .io Gross domestic investment -0.1 1.5 105 -2.3 .is Imports of goods and non-factor services -0.6 6.4 4.8 8.7 Gross national product 4.1 2.9 11.2 -58 -Exports --Imports Note 1995 data are preliminary estimates. * The diamonds show four key indicators in the country (in bold) compared with its income-group average. If data are missing, the diamond will be ,ncompiele Schedule E Page 2 of 2 Morocco PRICES and GOVERNMENT FINANCE 1975 1985 1994 1995 Inflation I%) Domestic prices (% change) 120 - Consumer prices 7.9 7.7 2.7 55 Implicit GDP deflator 1.5 8.5 32 5 0 Government finance 0 . (% of GDP) 20- Current revenue . 20.7 23.4 24.4 o.- - - Current budget balance .. -2.4 2.9 3.0 0 9 93 99 Overallsurplus/deficrt .. -9.6 -3.1 -2.9 -GDPde1 -CP1 TRADE 1975 1985 1994 1995 (millions USS) Export and import levels (mill. US$i Total exports (fob) . 2,145 4,036 4,368 8000 Agricultural products . 599 1,244 1.346 7 000 Phosphate rock . 475 299 337 6000 Manufactures 474 1,550 1,668 5.000 Total imports (cif) . 3,861 7,141 7,991 4.000 Food 510 868 1,045 3.000 Fuel and energy . 1,079 1,138 1,286 2,000 Capitalgoods . 652 1,799 2,014 1.0oo Export price index (1967=100) 87 95 99 0 Import price index (1987=100) .. 87 89 92 as 90 91 92 93 94 9s Terms of trade (1987= 100) . 100 107 108 Exports ilmports BALANCE of PAYMENTS (millions USS) 1975 1985 1994 1995 Current account balance to GDP ratio (%) Exports of goods and non-factor services 1,997 3.185 6,696 7,259 . Imports of goods and non-factor services 2.939 4.341 8,265 9,262 Resource balance -942 -1,156 -1,569 -2,003 Net factor income -88 -766 -1,297 -1,208 -2 Net current transfers 482 731 2.158 2.178 - Current account balance, I before official transfers -548 -1,191 -639 -1.023 Financing items (net) 519 1,209 135 1.002 1 Changes in net reserves 28 -19 -615 -51 -5- Memo: Reserves including gold (mif. USS) 438 345 4.378 4.338 Conversion rate (locat/USS) 4.1 10.1 9.2 10.7 EXTERNAL DEBT and RESOURCE FLOWS 1975 1985 1993 1994 Compoltion of total debt 1994 (mill. US$) (millions USS) 547 Total debt outstanding and disbursed 1,889 16,526 21.104 20.932 IBRD 244 1,288 3.559 3,746 3746 IDA 31 43 36 35 F 9 5174 / 35 Total debt service 163 1,372 2,612 2,920 , IBRD 33 167 552 572 IDA 0 1 2 2 0 816 Composition of net resource flows Official grants 26 416 309 279 Official creditors 232 428 -82 -2 Prrvate creditors 283 153 265 213 Foreign direct investment 0 20 491 601 Portfolio equity 0 0 0 63 World Bank program E Commitments 33 379 809 127 A - iBRD 10466 E - Biateral Disbursements 111 307 377 246 B - IDA 0 - Other multilateral F - P-vate Pnncipal repayments 18 87 294 302 C - IMF G - Short-term Net flows 93 220 83 -56 Interest payments 15 81 260 271 Net transfers 78 139 -177 -327 Intemational Economics Department 4/24/96  IBRD 27640 MOROCCO Ton8ere i MAROC TANGER. ) SOCIAL PRIORITIES PROGRAM -TETOUAN( Nd PROGRAMME PRIORITES SOCIALES L- 1on BASIC EDUCATION PROJECT - .,CHEFCHAOUE 'l NADOR / AL HICEIMA PROJET EDUCATION DE BASE - KENACNATE ---- SELECTED PROGRAM PROVINCES KENITRA,OUATEead PROVINCES SELECTIONNEES POUR LE PROGRAMME SiDi KACEM T - @ r- TAZA OUiDA Robal 7 - - * KHEMISSET Mkne FES RABAT Khm.et \ cosablonoo a BENi SLIMANE CASABLANCA vn hon. ou --dd > FRANE " Amn E - rdMEKNES\ BOULEMANE Berrech,d KHOURIBGA EL-JADIDA SETTAT Khobgo Oud Z.r\ Khni,r- FIGUIG - ----- KHENIFRA K.sb. Todio. . - BENI-MELLAL SoF - Ben, F gu g KELAAT - -3 2,SAFI SRAGHNA -- 32" Keloot 0Azloi- -- Errach,d, Sr.ghn. AZILAL, -A UI~A - ERRACHIDiA OLoou TohAnnot - CHICHAOUA E 0' ~I) OUARZAZATE Agod,r Toroodonn? 0 SHARE OF RURAL POPULATION OF A PROVINCE ;N THE TOTAL POPULATION OF THE PROVINCE TAROUDANNT PROPORTION DE LA POPULATION RURALE D'UNE PROVINGE -\ -PAR RAPPORT A LA POPULATION TOTALE DE LA PROVINCE [ARBETWEEN 50% AND 74% --ENTRE 50 ET 74% Taifh '/9.O 75% AND MORE Too ..75% ET P US TATA RIVERS TIZNIA COURS D EAU PROVINCE CAPITALS CAPITALES PROVINCIALES NATIONAL CAPITAL CAPITALE NATIONALE G_.. PROVINCE BOUNDARIES 0 50 100 150 LIMITES PROVINCIALES KILOMETERS INTERNATIONAL BOUNDARIES GUELMIME FRONTIERES INTERNATIONALES Ton-o ......-he boundons, color, denomonond and - ny other .nlormoton INTERNATIONAL BOUNDARIES hon n hmp do not mply, on the part o The Worid B8nk Goup, . . (APPREOXIMATE) Tnyjdgment on he.gatatus ofny rntory, nyndorseent t A.PPRONTIERES INTERNATIONALES TA-hA ('APPROX'AlATION) T AN T N o accptace f wc bondoes B   IMAGING Report No: P- 6766 MOR Type: MOP