Announcement of Morocco Irrigation Project Benefits Rural Poor on June 16, 1988

FOR IMMEDIATE RELEASE 'NorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 88/85 Contact: Fawzi Rihane (202) 473-2675 MOROCCO IRRIGATION PROJECT BENEFITS RURAL POOR WASHINGTON, June 16, 1988 -- Agricultural production in Morocco is expected to increase as a result of a better irrigation system to be developed with the support of a $23 million World Bank loan. The five-year project provides for the renovation and upgrading of about 120 traditional small- and medium-scale irrigation systems, covering about 80,000 acres of land, and will provide equipment for the repair and maintenance of flood irrigation schemes in the southern part of the country. Part of the project area is in underdeveloped, semi-arid regions, where destitute farmers have been abandoning their land to search for work in urban areas. About 10,000 farm families--many living below the country's poverty line- 4 ~ -are expected to benefit from the project and will have higher incomes. Government offices in charge of irrigation activities, including the Ministry of Agriculture and Land Reform, will be strengthened and measures will be taken to encourage farmers to form associations that would be responsible for operating and managing irrigation networks and recovering costs for water services. The World Bank loan is for 20 years, including five years of grace, with a variable interest rate, currently 7.72 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on the undisbursed balances. Note: Money figures are in U.S. dollar equivalents. \