Announcement of Morocco Expands Electricity Supply in Rural Areas on October 9, 1990

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. 91/15 Contact: Fawzi Rihane (202) 473-2675 UKH MOROCCO EXPANDS ELECTRICITY SUPPLY IN RURAL AREAS o C WASHINGTON, October 9, 1990 -- Morocco's ongoing efforts to expand the supply of electricity in rural areas will benefit from a $114 million loan from the World Bank, the second World Bank loan in support of the country's 15-year national rural electrification program (NREP), which was initiated in 1980. r The loan will help finance infrastructure development, technical assistance and training. Eectricity will be supplied to about 170,000 households in 462 villages. About 5,850 kilometers of distribution lines will be constructed and about 70 megavolt-amperes of transformer capacity will be developed. Buildings will be constructed and vehicles supplied. The Office National de l'Electricite (ONE), the national utility company, will receive specialized equipment to enhance the reliabilitly and quality of service in rural areas. Technical assistance will be provided to strengthen the administrative and financial capabilities in the power subsector and to implement institutional reforms aimed at delineating and streamlining the responsibility for planning, implementing and managing the rural power-distribution system. The World Bank has so far financed eight investment operations in Morocco's energy sector, including a $42 million loan in 1980 for the first phase of the NREP. 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 0.25 percent on the undisbursed balance. Note: Money figures are expressed in U.S. dollar equivalents.