Morocco - Pilot Fisheries Development Project

Report No. PID6727 Project Name Morocco-Pilot Fisheries Development (@+) ... Project Region Middle East and North Africa Region Sector Rural Development Project ID MAPE52247 Borrower Kingdom of Morocco (Ministry of Fisheries) Implementing Agency Ministry of Marine Fisheries (Momf) Contact Mr. Mostapha Faik, Inspecteur general Ministere des peches maritimes Nouveau quartier administratif Haut Agdal - B.P. 476, Rabat Tel: 212-7-68 83 34 Fax: 212-7-7-68 31 34/35 Date Of This Pid October 6, 1998 Appraisal July 13, 1998 Projected Board Date December 10, 1998 Background The fishing industry plays a key role in Morocco's economy. With a long coastline, the waters of the exclusive fishing zone (Exclusive Economic Zone, EEZ) in the Eastern Central Atlantic Ocean and in the Mediterranean Sea, are among the richest in the world, holding large stocks of schooling surface- swimming pelagic, or blue fish, and of demersal, or bottom-dwelling fish and cephalopods (various white fish, squid, octopus and cuttlefish). Data containing biomass and annual catches are incomplete, but it was estimated in 1996 that the annual catch from Moroccan waters was approximately 1 million tons, with an average annual growth rate of 15t over the last five years. Over recent years, the fisheries sector has gained importance for economic and social reasons. It is estimated to contribute roughly 19t of total exports (200,000 tons in 1997 with a total value of $US 710 million), 60t of the agricultural exports, and employs over 75,000 full time and some 20-30,000 part time persons. The key sector issues can be summarized as follows: (a) the fisheries sector in Morocco is not effectively adjusted to on-going liberalization; (b) public and private institutional performance in delivering cost-effective fisheries services has been poor; (c) high sector growth has emphasized competitiveness at the expense of employment creation; and (d) increasing pressure on fish resources threatens the sustainability of several species. The Government has developed its sector strategy to address these issues through five specific activities: (a) improving knowledge of fish stocks and pursuing sustainable resource management; (b) reducing direct public intervention (prices, tariffs) in coastal fisheries and the processing industry while promoting private investment and restructuring; (c) promoting institutional reform by targeting and strengthening the public role in areas  such as technology development, training and policy analysis; (d) supporting private sector empowerment by establishing Maritime Chambers and launching joint activities such as the fleet modernization programs; and (e) improving existing port infrastructure and expanding infrastructure available for small- scale fisheries. Project Objectives The proposed project would contribute to enhance value added and competitiveness of the fisheries sector. More specifically, the project development objectives would be to: (a) strengthen MOMF capacity to manage and develop the fishing sector; and (b) support development along the marketing chain (filiOre) at three pilot sites. Project Description The proposed project is a pilot which will be implemented over a period of three years to assist the Government to prepare and implement its medium term strategy to enhance sector value added and competitiveness. The project would therefore aim to address the most pressing sector issues through two main components: (a) institutional development to strengthen the ability of MOMF to manage and develop the fishing sector; and (b) pilot operations to enhance value added and competitiveness in the fishing sector, through intervention in three pilot sites (Tantan, Nador and Tanger) at all critical points in the production/marketing chain. Project Cost and Financing Total project cost is currently estimated at US$16.0 million, with a Bank loan tentatively placed at US$ 5.2 million and with Government and beneficiaries contribution estimated to US$10.8 million. Implementation The MOMF's General Inspectorate would be responsible for overall project implementation. Implementation of individual components would involve the central department within MOMF, as well as other organizations, including the National Fisheries Authority (ONP), National Fisheries Research Institute (INRH), and local professional associations. Sustainability Beneficiaries' involvement would be an important contribution to project sustainability, and the project would seek, at the local level, professional associations' active involvement in the three pilot ports. Lessons learned from previous Bank involvement World Bank experience in Marine Fisheries Projects indicates that: (a) the development of labor intensive catching technologies can be highly effective in a situation such as that in Morocco; (b) the development of new adapted catching technology requires targeted public research support, notably in labor intensive small-scale and coastal fisheries, and close cooperation with the fishermen groups involved; (c) port users need to play a clearly defined - 2-  role in management of fishing ports; (d) effective fish quality control requires a well balanced synergy between public control mechanisms and private sector action, and staff training; and (e) the entire fishery system needs to be explicitly considered in planning fishing port infrastructure. Rationale for Bank involvement The Bank's involvement in analytical and strategy work, particularly in the canning industry and in a wide range of other activities in Morocco, put it in a unique position to assist MOMF undertake this work. The MOMF has expressed interest in continued Bank involvement and the Bank would, in the proposed project, support this request through: (a) contribution of critical international experience and perspective; (b) provision of relevant expertise for structuring the sector policy framework to address long-term needs, such as, fish resource allocations, value added, employment and export incomes; and (c) its close relationships with key donors, and would act as an instrument to involve them as partners in a joint program for fisheries development and institutional capacity building, and at the same time ensure synergy with ongoing TA. Program Objective Category The Project fits into the Environmentally Sustainable Development Program Objective Category. It aims to enhance sector value added and competitiveness in a sustainable manner. Environmental aspects The project has been rated in the environmental screening category "B". No major environmental issues are foreseen, instead, the environmental impact of the project is expected to be strongly positive (see environmental annex attached). Project Benefits The main benefits from the three pilot areas, would be: (a) higher quality fish and improved productivity for the processing industry resulting in higher value added, increased fishermen income, and greater job security; (b) enhanced quality control and port infrastructure management; (c) reorganization and development of a more competitive fish processing sector, better oriented to export markets; and (d) a strengthened small-scale fisheries sub-sector focusing on high value, fresh fish products, and enhancing rural income and employment opportunities. Project Risks Risks which could impede success of the project include: (a) lack of adoption of new technologies by boat owners, which would be countered by performing on- boat demonstrations accesible to beneficiaries; and (b) inadequate collaboration of stakeholders, which would be reduced by consolidating dialogue at the port level between the Administration and industry local representatives. Contact Point: The InfoShop The World Bank - 3-  1818 H Street, N.W. Washington, D.C. 20433 Telephone No. (202)458 5454 Fax No. (202) 522 1500 Note: This is information on an evolving project. Certain activities and/or components may not be included in the final project. Processed by the InfoShop week ending November 6, 1998. - 4 -  Annex Environmental Annex No major environmental issues are foreseen, instead, the environmental impact of the project is expected to be strongly positive, especially in the field of food safety and quality management since a quality assurance component to meet EU standards for sea food exports will be financed under the project. However, the project will monitor possible environmental drawbacks and propose adequate mitigation measures including: (a) use of ozone depleted substance (ODS) free refrigeration equipment complying with the Montreal Protocol in new designs for coastal vessels using refrigeration technology; (b) connection of wastewater discharge from the rehabilitated auction halls to urban waste water; and (c) inclusion, in the feasibility study, of a waste management plan which will address any increase in solid waste at the fish auction halls and landing facilities. In addition, for each of the pilot fish auction hall, MOMF will monitor the amount of the solid matter entering the sea to ensure that the quality of water is of an acceptable standard. - 5 -