Announcement of World Bank to Provide Agricultural Credit to Morocco on May 24, 1979

. ' FOR. IMMEDIATE RELEASE I . • World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477 ~1234 BANK NEWS RELEASE NO. 79/91 MAY 24, 1979 WORLD BANK TO PROVIDE AGRICULTURAL CREDIT TO MOROCCO The World Bank has announced a $70 million loan to the Kingdom of Morocco to help finance agricultural development. The Fourth Agricultural Credit Project will finance investments through the Caisse Nationale de Credit Agricole (CNCA)--the national agricultural credit bank--by financing farm investments from September 1979 to August 1982. Financing would include investments by small farmers with incomes below the absolute rural poverty level, medium and large farmer clients, Agricultural Reform Cooperatives and Farmers' Associations, and agro-industrial investors. • The project is expected to help improve the standard of living of about 475,000 farm families. The growth of agricultural development and reduced dependence on imported foodstuffs are two major benefits. It will al~o help generate value-added through agro-industrial production. Approximately 115,000 man-years of employment will be created. In addi- tion, the project will help expand CNCA's capacity as an agricultural credit institution. Co-financing for the $737.2 million project is being ?rovided by the International Fund for Agricultural Development ($25 million) and the Kreditanstalt fUr Wiederaufbau ($50 million). The Bank loan will have a term of 14 years, including 4 years of grace, with interest at 7.9% per annum. The proceeds of the loan will be onlent through the CNCA, • NOTE: Money figures are expressed in U.S. dollar equivalents.  • FORM NO. 1121 (5-76) T E C HN I CA L D A T A PROJECT: Fourth Agricultural Credit COUNTRY: Kingdom of Morocco TOTAL COST: $737.2 mill ion BANK FINANCING: $70 million, for a term of 14 years, including 4 years of grace, at 7.9% interest per annum OTHER FINANCING: International Fund fpr Agricultural Development (IFAD), $25 mill ion; Kreditanstalt fur Wiederaufbau (KfW), $50 million; Moroccan government, $1!~ mill ion; Caisse Nationale de Credit Agricole (CNCA), $350.7 million; sub-borrowers, $227 million. IMPLEMENTING ORGANIZATION: Caisse Nationale de Cr~dit Agricole (CNCA) 2 rue d'Alger Rabat, Morocco Cable: CREDIAGRICOLE Telex: 31657M - CREDAGRI PROJECT DESCRIPTION: It will finance investments (through CNCA) from September 1979 to August 1982, including investments by • a) small farmers with incomes below 1 .6 times the absolute ~ural poverty level; b) medium and large farmer clients; c) the Agrarian Reform Cooperatives and Farmers' Associations; and d) agro-industrial investors. PROCUREMENT: With the exception of the agro-industry component, the range of goods to be financed is varied, and would be unsuitable for bulk procurement or international competitive bidding. Agricultural sub-borrowers would thus purchase equipment through existing local channels. Dairy farm development would require procurement of in-calf heifers, most of which will come from the government or private farms. Should more than 75 heifers be sought, quotations wi 11 be taken from at least three suppliers. For agro-industrial sub- projects with an investment cost exceeding $1 .25 mi 11 ion, contracts for civi 1 works and installation of machinery exceeding $200,000, and equipment exceeding $100,000, contracts will be awarded through competitive bidding advertised locally. Al 1 other procurement wi 11 be done according to Moroccan commerciai practices accept- able to the Bank. ECONOMIC RATE OF RETURN: 20% ESTIMATED COMPLETION DATE: 1982 • - 0 -