Announcement of World Bank Committed Two Hundred Million Dollars to Morocco in Fiscal Year 1998 on July 15, 1998

World Bank Committed $200 Million to Morocco in Fiscal Year 1998 Contact: Middle East & North Africa Region Regional Communications Unit Telephone No: 202-473-2623 Fax No: 202-522-0003 WASHINGTON, July 15, 1998 The World Bank approved a total of $200 million to support four development projects in Morocco during fiscal year 1998 (July 1997June 1998), as well as a guarantee of $184 million to support the Jorf Lasfar private power project. This compares to lending commitments of $108 million in FY97 and $540 million in FY96. The $200 million in loans have a maturity of 20 years and a five-year grace period. As for the lending rate, World Bank Commitments to Morocco Morocco chose a combination of LIBOR-based and fixed-rate single currency terms in US dollars and (FY 98, $millions) French Francs. At the time of loan approvals, the rates ranged from about 4 percent per annum for francs IBRD to about 6 percent per annum for dollars. Municipal Finance II 70 Rural Water Supply & 10 World Bank Commitments to Morocco in FY98 Sanitation Water Resources Mgt 20 SECOND MUNICIPAL FINANCE PROJECT Contractual Savings 100 Loan Amount: US$35 million (IBRD) and FRF205 million. Approval Date: Sept. 11, 1997 Development Project Objectives: This project aims to improve living standards of about 4 million people residing in Jorf Lasfar Power (Guarantee) 184 small- and medium-size rural and urban communes and to integrate these communes into modern economy. Total 384 The objectives will be implemented by increasing the provision of basic infrastructure services in these cities and by strengthening Fonds dEquipement Communal as a commercially viable, autonomous financial institution specialized in providing financial services to the municipal sector. RURAL WATER SUPPLY AND SANITATION PROJECT Loan Amount: US$10 million (IBRD). Approval Date: November 25, 1997 Project Objectives: This project seeks to improve the access of rural populations to safe potable water and to support the implementation of Moroccos master plan program for the supply of water to rural populations. About 75 percent of the poor in Morocco live in rural areas and it is estimated that only 20-30 percent of the rural population currently have good access to safe water. By improving rural water supply, the project aims to improve the health and productivity of rural populations, and to reduce the burden on rural girls, who are traditionally involved in fetching water over long distances, which lowers their attendance in primary schools. The project is expected to benefit about 1.3 million rural inhabitants who generally have poor quality water often far from their homes. WATER RESOURCES MANAGEMENT PROJECT Loan Amount: US$10 million (IBRD) and FRF 59 million. Approval Date: Feb. 26, 1998 Project Objectives: The project will assist the government in promoting comprehensive water management that is economically efficient, equitable, and environmentally sustainable. Specifically, the project will: (1) support the establishment of an institutional framework for integrated water resources management and the creation of the River Basin Agency; (2) improve capacity in water resources planning and management; (3) improve water use efficiency; (4) increase the effectiveness of existing hydraulic infrastructure; and (5) introduce water pollution control measures. CONTRACTUAL SAVINGS DEVELOPMENT PROJECT Loan Amount: US$100 million (IBRD). Approval Date: June 9, 1998 Project Objectives: This project seeks to improve the accumulation and allocation of long-term savings and guarantee the long-term sustainability of the countrys pension system. The project will improve the allocation of savings to private productive investment by reforming contractual savings institutions, including insurance companies, savings banks, and the pension system. It is based on the premise that two important elements are required to put Morocco on a higher growth path: higher savings and higher efficiency in savings allocation.