Morocco - Fifth Agricultural Credit Project

Docuuamut of The World Bank FOR OMCIAL USE ONLY Nt N. P-3681-MOR REPORT AND _WIENDTIOW OF THE PRESIDENT OF THE ITLBANK FOR R IM AD DEPT TO THE EXECTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALt TO US*115.4 NILLI1ON TO CAISSE NqATIONALE DE CREDIT AGRICULE WITH THE GUARANTEE OF THE XKIGDOM OF MOROCCO FOR A rFIFt AGRICULTUPRAL CRESDIT PROJECT NoVeMber 22, 1983 ,hk dmemeU b a lbi balm mg -y be d bY plmatI mly In the P uI dp SobchId iadLh lb -1mmab y sol siheewb be dbdemi ulihea WM Umk elbaul.  CURRENCY EQUIVALENTS US$1. 8.00 Dirhams (DH) Dirham (DU) 1 - US$ 0.12 WEIGHTS AND MEASURES Metric System GLOSSARY OF ABBREVIATIONS ADB - African Development Bank (Banque Africaine de Ddvelopment) AFESD - Arab Fund for Economic and Social Development CICA - Agricultural Credit Bank (Caisse Nationale de Credit Agricole) CLCA - Local Agricultural Credit Bank (Caisse Locale de Credit Agricole) CRCA - Caisse Rfgionale de Credit Agricole DLRBn - - Directorate of Land Registration and Topographic Operations (Direction de la Conservation Fonciere et des Travaux Topographiques) KfW - Kreditanstalt fur Wiederaufbau of the Federal Republic of Germany MILAR - Ministry of Agriculture and Agrarian Reform (MinistAre de l'Agriculture at de la RWforms Agraire) MIS - Nanagemut Informatiou System 0)VER UNT OF UNGDOK OF MOROCCO FISGAL YEAR: January 1 to December 31 CNCF FISCAL YEAR; September I to August 31  FOR OFFICIAL USE ONLY KINGDOM OF MOROCCO FIFTH AGRICULTURAL CREDIT PROJECT LOAN AND PROJECT SUMMARY Borrower: Caisse NationaLe de Crgdit Agricole (CNCA). Guarantor: The Kingdom of Morocco. E Amount: US$115.4 million, including the capitalized front-end fee. Terms: 17 years including four years grace at the standard variable interest rate. CNCA will bear the interest risk on the loan. The Guarantor will make arrangements satisfactory to the Bank to protect the Borrower against foreign exchange risks in connection with service of the Bank Loan. Project Description: The Project aims to (i) contribute to growth of agricultural production, (ii) improve the standard of living of about 580,000 farm families, and (iii) create about 78,600 manyears of rural employment. The Project wouLld support the achievement of these objectives through: (a) increasing private investments in agriculture; (b) improving access by small farmers to institutional credit; (c) promoting mobilization of domestic savings and (d) strengtnening CNCA's management efficiency and financial situation. The proposed Loan would finance farm investments through CNCA during the period September 1983 to August 1986, including: (a) investments by small farmers, (b) investments by Agrarian Reform Cooperatives, (c) investments by medium and large farmers, and (d) agro-industry investments. The project would also include improvement of CNCA's physical infrastructure, management information systems and loan monitoring and evaluation, and define a banking strategy and a staff training program. The main benefits of the project would be substantial increases in agricultural production and farm incomes. It would particularly help about 510,000 small farmers or about 88 percent of project beneficiaries. The project would also help consolidate CNCA's financial viability as a basis for expanded lending while reducing the need to rely on concessional financing in the future. The major project risk is that of abnormally adverse weather conditions which would reduce crop yields and livestock output. The estimates of financial and economic analyses have taken account of this eventuality and still yield acceptable rates of return. -BEST-CPY AVAILABLE This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - Project Cost Estimatesz Local Forein Total