Announcement of World Bank to Support Third Water Supply Project in Morocco on June 1, 1981

. . . FOR IMMEDIATE RELEASE •World Bank ·1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 81/107 June 1, 1981 WORLD BANK TO SUPPORT THIRD WATER SUPPLY PROJECT IN MOROCCO The World Bank announced today the approval of an $87 mill ion loan to Morocco for a third water supply project. The project will help provide improved access to safe water for the country's urban poor and the inhabitants of remote rural areas. The $169 million project, the World Bank's fourth operation in Morocco's water supply sector, wi 11 provide revolving funds, administered by the municip?l ities of Fez, Marrakesh, Meknes, Tetouan, Safi, Oujda, Tangiers, and Taza, to enable low- income households in these cities to finance the cost of house connections. A previous Bank-assisted project provided such funds in Casablanca, Rabat-Sale, and Kenitra, which will continue to receive funds under the present project. Funds from the World Bank loan will be used to supply a line of credit to • the Office Nationale de l 'Eau Potable (ONEP) for financing subprojects which will expand or upgrade the water supply systems of about 32 smaller towns scattered throughout Morocco. The project also includes the construction of two regional water supply systems. The first, in the area of Karia Ba Mohamed, will provide facilities for water pumping, transmission, and storage, as well as sewage treatment for A·!y-;,~_;t 7,300 people. The other involves an area about 100 kilometers long in the Ziz valley between Errachidia and Erfoud, and the Tafilalet plain around Rissani, with a population of about 170,000, where a new water supply system will replace and expand the existing inadequate and contaminated system. The development and testing of wells in small rural localities, and the prov1s1on of equipment for water quality control, water metering, leak detection, maintenance, and surveys, are also included under the project. Technical assistance will be provided to ONEP for improvements in its management, technical operations, and staff training. The project is expected to benefit a total of about 2.2 mill ion people, of whom nearly half are below the poverty threshold. The World Bank loan to Morocco is for 17 years, including four years of grace, with interest at 9.6% per annum. • NOTE: Money figures are expressed in U.S. dollar equivalents • FORM NO. 1121 (5-76) T E CH N I CA L DAT A PROJECT: COUNTRY: Third Water Supply Morocco • TOTAL COST: $169 mill ion BANK FINANCING: $87 mill ion, for 17 years, including four years of grace, with interest at 9.6% per annum OTHER FINANCING: Office Nationale de 1 'Eau Potable, $21. l million Regies (water supply agencies) of the project cities of Casablanca, Fez, Marrakesh, Meknes, Tetouan, Safi, Oujda, Tangiers, Rabat-Sale, Taza, and Kenitra, $46.3 mill ion Ministere de 1 'Equipment, $6.4 mill ion IMPLEMENTING ORGANIZATION: Office Nationale de 1 'Eau Potable (ONEP) 6 bis, rue Patrice Lumumba Rabat, Maroc TX 31982 M PROJECT DESCRIPTION: The project includes: revolving funds to finance credit to low-income households for house connections in the project's population centers; (ii) a 1 ine of credit to the Office Nationale de 1 'Eau Potable (ONEP) for subprojects consisting of improvements and expansion of water supply facilitie4A in about 32 smal 1 centers; (iii) construction of two regional water supply systems, in ~ the areas of Karia Ba Mohamed, and Errachidia~Erfoud-Rissani; (iv) the development of water resources in some 24 centers; (vJ the acquisition of laboratory equipment, water meters, leak detection equipment and materials, and equipment for maintenance and surveys; and (vi) technical assistance, training and studies. PROCUREMENT: The installation of house connections will be executed by force account. Materials and equipment will be procured through international competitive bidding (°ICB) according to World Bank guide1 ines. Equipment contracts for less than $250,000 each wi 11 be awarded after local competitive bidding (LCB) in accordance with World Bank procedures. Contracts for civil works or equipment wi 11 be procured through ICB. However, contracts for civil works valued at less than $1 mill ion and contracts for equipment for less than $250,000 each, will be procured through LCB procedures, which permit the participation of foreign suppliers. CONSULTANTS: Total technical assistance needs are estimated at 710 man- months, of which 590 are for consultant services for studies, ONEP's subproject component, and for the regional water supply systems. The remaining 120 man-months are for the five expeit advisers to ONEP. ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: n.a. 1986 • - 0 -