Announcement of Sixty-Five Million Dollars for Morocco’s Agriculture on June 29, 1978

FOR IMMEDIATE RELEASE_ eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 78/121 JUNE 29, 1978 $65 MILLION FOR MOROCCO'S AGRICULTURE The World Bank has approved a $65 million loan for the Fes- Karia-Tissa agriculture project in Morocco. The project will provide funds and facilities to increase the productivity of about 20,000 small farmers. This will be achieved through access to an improved extension service and short-term credit for the purchase of input packages. In addition to a pilot erosion control program on 23,000 hectares including a hillside farming and a wasteland improvement component supported by an adaptive research program, the project contains infrastructure components. These include • road construction, village water supply, and the establishment of health and education facilities. The standard of 1 iving of ·about 33,900 farm families culti- vating about 256,000 hectares in the Fes-Karia-Tissa region of Morocco will be raised by this project. The project will contribute to the growth of agricultural production and a decline in the country's dependence on food imports. Moreover, it will improve Morocco's balance of trade by saving about $23 million. The $65 million Bank loan to the Kingdom of Morocco will be repayable in 24 years, including a 6-year grace period, with interest at 7.5% per annum. NOTE: Money figures are expressed in U.S. dollar equivalents • • FORM NO. 1121 (5-76) T EC HN I CAL D A T A PROJECT: COUNTRY: TOTAL COST: Fes-Karia-Tissa Agriculture Kingdom of Morocco $161.5 million • BANK FINANCING: $65 million, for 24 years including a 6-year grace period at 7.5% per annum OTHER FINANCING: Government of Kingdom of Morocco, $85.9 million. Caisse Nationale de Credit Agricole (CNCA), $8.4 million. IMPLEMENTING ORGANIZATION: Ministry of Agriculture and Agrarian Reform Rabat, Morocco Cable: MINAGRO Te 1ex: 3 19 32. M PROJECT DESCRIPTION: It will provide funds and facilities to increase the productiv- ity of about 20,000 small farmers through access to an improved extension service and short term credit for the purchase of recommended input packages. A pilot erosion control program on 23,000 hectares will include a hillside farming and a wasteland improvement component supported by an adaptive research program. lnfrastructur. components include road construction, village water supply, and creation of health and education facilities and will benefit about 33,900 rural families. PROCUREMENT: Procurement for road construction, road maintenance equipment, water supply constr"-t:ion and vehicles and equipment for agri- cultural extension services and hillside fa~mi~~ totalling $63.4 million will be made on the basis of international competitive bidding (ICB) according to World Bank guidelines. To stimulate international interest in the project, several lots will be bulked for tender- ing purposes. Contractors will be allowed to bid on all or part of a 11 package 11 of contracts in order to attract local contractors. Procurement of civi 1 works for housing, health and education facilities, administrative buildings, involving a large number of small contracts and amounting in total to $18.2 million equivalent, will be handled through local competi- tive bidding (LCB) procedures already determined to be satisfactory to the Bank. Procure- ment agencies of equipment and vehicles on individual contracts not exceeding $100,000 equivalent and the purchase of agricultural chemicals and seeds will be made through exist- ing commercial channels. CONSULTANTS: The project provides for (i) 20 man-year of architects/engi- neers for the design, construction and supervision of works; (ii) 15 man-years for medic research and demonstration, extension training, hillside farming and range management; and (iii) 22 man-years for preparing two agricultural projects • ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 21% 1984 - 0 - •