Announcement of Signing of a Twenty-Four Million Dollars Loan and a Ten Million Dollars Credit for Agriculture in Morocco on October 10, 1972

'\ • INTERNATIONAL BANK FOR , RECONSTRUCTION AND DEVELOPMENT • "'11 INTERNATIONAL DEVELOPMENT ASSOCIA'FION 1818 H STREET, NW. WASHINGTON D.C.20433 TELEPHONE; EXECUTIVE 3-6360 Bank Press Release No. 72/63 Subject: Signing of a $24.0 million IDA Press Release No. 72/59 loan and a $10 million credit October 10 , 19 72 for agriculture in Morocco Morocco, the World Bank and its affiliate, the International Development Association (IDA). today signed $34.0 million in loans and credits to help finance a three-year project in Morocco for agricultural development through medium and long-term investments. The World Bank is providing a loan of $24 .O million to the Caisse Nationale de Credit Agricole (CNCA). IDA is providing a credit of $10.0 mil- lion to the Kingdom of Morocco to be used to increase the Government's capital contribution in CNCA. The project will involve about 8,000 loans to individual farmers, groups • of f a:r.ms and operators or packing facilities. It will help finance medium and long-term investments for mechanization of grain farms in rainfed areas, citrus development through groundwater and plantation development, winter vegetable production, and livestock development. The project will generate employment for about 18,000 persons through citrus, vegetable and livestock development on about 4,000 farms aside from employment generated through marketing .E;.ctivities, especially for exports. Incremental production generated by the project will: reduce grain im- ports and result in annual impor.t savings of about $14 million; generate addi- tional export earnings of about $16 million annually by 1980; and benefit Morocco's urban consumers and tourist industry through increased availability of meat and milk throughout the year. The overall impact on the balance of payments will be sub st anti al. The total project cost is estimated at $69.0 million. The foreign exchange component of $34.0 million will be met by the Bank Group's loan and credit. The Bank loan is being made for 15 years, including a four-year gra_ce • period, at 7!,;% interest per annum and is guaranteed by the Kingdom of Morocco • The IDA credit is for a period of 50 years, including a 10-year grace period, and is interest free except for a 3/4 of 1% service charge to cover IDA's administrative expenses. - 0 -  INTERNATION'AL BANK FOR REOONSTRUCTION AND DEVELOPMENT INT.ERNATIONAL DEVELOPMENT ASSOCIATION 1818 H STREET, N.W. WASHINGTON D.C.20433 TEU:PHONE: EXECUTIVE 3-6360 October 10, 1972 TECHNICAL DATA PROJECT: Second agricultural credit COUNTRY: Morocco TOTAL COST: $69.4 million BANK AND IDA FINANCING: Bank loan: $24.0 million, 15 years, including a four year grace period at 7~% interest per annum. IDA credit: $10.0 million, 50 years, including a 10-year grace period, interest free except for 3/4 of 1% service charge to meet IDA's • administrative expenses • IMPLEHENTING ORGANIZATION: Caisse Nationale de Credit Agricole (CNC'.A), CREDIAGRICOLE. 2, rue d'Alger, Rabat, M>rocco. Telephone: 203-94. PROJECT llESCRIPTION: The project will help finance a three-year medim and long-term investment program for mechanization of grain fa.ms in rainfed areas, citrus development through groundwater and plantation development, winter vegetables production, live- stock development,, and packers' marketing facilities mainly for export produce. More than 50% of expected investment will be for tractors· and other farm machinery 1, about 22% for citrus .Plantation. development and about 13% for winter vegetable production. The project will involve about 8,000 loans for individual fanners, groups of farmers- and operators of packing facilities. Farms receiving loans would range from 12 to 37 acres on irrigated land and from 37 to 500 acres on dry land. PROCUBEMENT: The· main types of equipment to be procured are tractors and attachments, combines and pump sets. These items will be pro- cured through normal comnercial channels. ESTIMATED COMPLETION DATE: Lending program: Sep_tember 1975. Disbursement to borrowers: February 1976 • • - 0 -