Announcement of Thirty-Two Million US Dollars Loan for the Second Sebou Development Project in Morocco on June 24, 1974

INTERNATIONAL BANK FOR • RECONSTRUCTION AND DEVELOPMENT 1818 H STREET. N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Release no. 74/55 Subject: $32 million loan for the Sebou June 24, 1974 II Development Project in Morocco. The World Bank has approved a $32 million loan to help finance the Sebou II Development Project in Morocco. The World Bank has been associated with the development of irrigation on the Rharb plain through two previous projects, the Sidi Slirnane Irrigation Project approved in 1964, and the Rharb-Sebou Irrigation Project approved in 1969. The Sebou II Development Project will provide protection against flood damage to 35,200 ha being developed for irrigation, improve surface communications and provide sugar processing capacity for cane being grown under the Rharb-Sebou Irrigation Project . • The flood protection works will eliminate the risk of damage to property and loss of life for those people living in the project area. The sugar factory make possible a saving in sugar imports, estimated to amount to $14 million per year will when full capacity of the factory is reached in 1980. The project also includes studies of the incidence of bilharzia in the project area and of industrial pollution in the Rharb plain. The loan includes financing for the construction of an effluent treatment plant for the sugar factory and an existing adjacent sugar beet plant, should the pollutjon study indicate this is necessary. The Bank loan is for 25 years, including 5 years of grace, with interest at 7-1/4% per annum. The loan will cover all the foreign exchange costs of the project . • Note: Money figures are expressed in US dollar equivalents. PROJECT: COUNTRY: TECHNICAL == -, == ::-: r:e Second Sebou Irrigation Project Kingdom of Morocco DATA == == -= -= • TOTAL COST: $53. 7 million BANK FINANCING: $32 million, for a period of 25 years, including 5 years of grace, with interest at 7-1/4% per annum. OTHER FINANCING: Government Funds, $21.7 million IMPLEMENTING ORGANIZATIONS: Office Regionale de Mise en Valeur Agricole du Gharb (ORMVAG) assisted by Hydraulic Directorate of the Ministry of Public Works; Roads Directorate of the Ministry of Public Works; SUNACAS PROJECT DESCRIPTION: The project consists of: a) construction of earth dikes and ancillary works to protect against floods the 35,200 irrigated ha., being developed under the Rharb-Sebou Irrigation Project; b) strengthening of roads and railway tracks; ~) construction of a sugar cane factory with'a capacity of 2,500 tons per day over a six month arvesting season; d) study of existing industrial pollution of the lower Sebou river and onstruction of effluent treatment plant if necessary; e) improvements of about 100 km of primary .nd secondary roads, bituminous surfacing of about 100 km of tertiary and access roads and construction of a new bridge over the Sebou river at Mechra Bel Ksiri; f) improvement of about 230 km of tertiary and unclassified access roads; g) procurement of equipment for maintenance. of the roads improved under (f); h) a study of Bilharzia infestation and the possibility of i eradication; i) training, through a program of fellowships and on-the-job training for different parts of· the project. PROCUREMENT: Construction of the sugar factory was internationally tendered in accordance with Bank procurement guidelines. The contract was awarded to the lowest bidder, Societe Fives-Cail-Babcock of France, on January 22, 1974. Eighty per cent of payments by SUNACAS, before signature of the Bank loan, will be financed retroactively by the Bank, up to a maximum of $2 million. Civil works for flood protection and roads, and the effluent treatment plant will be procured through international competitive bidding, and will as far as practic- able be grouped in lots of at least $1 million in order to attract foreign competition in bidding. Consultants' services will be procured on terms and conditions acceptable to the Bank. CONSULTANTS: Consultants' services will be provided under the project for: a) developing the production and transport of sugarcane; b) the pollution c.ontrol study; c) the schistosomiasis study; d) further studies, final design and preparation of bid documents for flood protection works; e) assisting the Regional Office in supervision of construction of flood protection works; f) other short-term consulting requirements (including su~arcane f~ctory acceptance). ESTIMATED COMPLETION DATE: March 1979 -0- •