i-.! ~3§- 7- A/2k

The World Bank

FOR OMCIL USE ONLY

h..Xl,.\NT 1, ;1 ,. P iL j,

(;1.4 ,4lt ' 'r': ' VUA.4'i7.Tl'R, No. e P-5827-IOR

MElORANDUIM AND RECOtMMENDATION

OF THE

PRESIDENT OF THE

UInTERATIONAL BANK FOR RECONSTRUCTION AND DEVELOPME

TO TFE

EXCUTIVE DIRECTORS

ON A

PROPOSED LOAN

IN AN AMOUNT EQUIVALT TO US$215 MILION

TO THE

KINGDOM OF MOROCCO

FOR A

SECONID LAGE-SCALE IRRGATION IMPROVEMENT PROJECT

MARCI 10, 1993

This document has a restricted distribution and may be used by recipients only in the perfornmace oftheir official duties. Its contents may not 4therwise be disclosed without World Bank authorization.

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

CURECY EGUIVAETS

( Februar, 1993 )

Currency Unit - Dirham (DH)

US$1.00 DH 9.00

DH 1.00 US$0.1ll

GLOSSAwY OF ABBREVIATIONS

ASAL-II Second Agricultural Sector Adjustment Loan

CNCP National Committee for Project Coordination

DER Directorate for Rural Equipment

IAASP Irrigated Areas Agricultural Services Project

LSI Large-Scale Irrigation

LSII-l Large-Scale Irrigation Improvement Project(Loan 2656-MOR)

LSII-2 Second Large-Scale Irrigation Improvement Project

MARA Ministry of Agriculture and Agrarian Reform

MIP Management Improvement Plan

0& Operation and Maintenance

ORMVA Regional Authority for Agricultural Development

FISCAL TM

January 1 - December 31

FOR OFMCUL USE ONLY

KINGDON OF MOROCCO

SECOND LRICE-SCALE IRRIGATION IPOVI EIT PROJECT

Loan and Project Summy

Borrower: Kingdom of Morocco

Amount: US$215 million equivalent

Terms: 20 years, including five years' grace, at the Bank's standardvariable interest rate.

Financing Plan: USS million

,overnment 98.0IBRD 215.0ORMVAs 35.3Farmers 19.0

TOTAL 367.3

Economic Rate of Return: 23 percent

Staff Aooraisal Retort: No. 10732-MOR Date: March 10, 1993

Map No.: IBRD 23744

This document has a restricted distribution and may be used by recipients only in the perfortmanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

MEMORANDUM AND RECOMMENDATION OF THE PRESIDENTOF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

TO THE EXECUTIVE DIRECTORSOF A rkOPOSED LOAN TO THE KINGDOM OF MOROCCO

FOR A SECOND LARGE-SCALE IRRIGATION IMPROVEMENT PROJECT

1. I submit for your approval the following memorandum andrecommendation on a proposed loan to the Kingdom of Morocco for the equivalentof US$215 million to help finance a project for the nationwide rehabilitation ofthe large-scale irrigation systems and associated management and policy reformswith a view to increasing efficiency, providing better resource allocation andensuring long-term sustainability of the subsector. The loan would be at theBank's standard variable interest rate, with a maturity of 20 years, includingfive years of grace.

2. Background. Large-scale irrigation (LSI) covers 485,000 ha, whichis 6 percent of the total cultivated area in Morocco, and contributes about 20percent of the value of the total agricultural output by producing a variety ofcash and food crops. Most of the LSI schemes were created during the last fortyyears as the centerpiece of the Government's strategy to modernize traditionalagriculture, overcome erratic rainfall distribution and reduce food imports.They rely on modern irrigation technologies for year-round irrigation. Farms arepredominantly of a small size (3.9 ha on average) and half of the 125,000 farmersengaged in LSI hold less than 2 ha. The schemes are operated by nineparastatals, the Regional Authorities for Agricultural Development (ORMVAs),placed under the supervision of the Ministry of Agriculture and Agrarian Reform(MARA) and the Ministry of Finance for technical and financial aspects,respectively. The ORMVAs have a wide range of responsibilities covering systemsoperation and maintenance (O&M) and support services to farmers (agriculturalextension, in particular).

3. As a whole, LSI development has been successful in promoting modernirrigated agriculture, reducing rural out-migration, raising incomes andincreasing food production and yields. The ORMVAs have demonstrated theircapacity to construct and operate sophisticated facilities and provide farmerswith technical and logistical assistance. However, this relatively goodperformance was achieved at the cost of heavy public investments to create modernfacilities, substantial recurrent subsidies to compensate for insufficient costrecovery and excessive ORNVA involvement iA budget-draining commercialactivities.

4. With a legal framework enacted in 1969 for recovering 100 percent ofO&M costs and up to 40 percent of the initial investment cost, Morocco is a

* leader in this field among developing countries. However, Government focus onrapidly developing new irrigated areas during the seventies combined with thesoaring energy costs of pumping water following the oil crisis were reflected in

* inadequate implementation of this legal framework, resulting in insufficientwater charges and a low attention to their full billing and recovery. In 1985,about one third of the water delivered to users was not billed and less than twothirds of the amount billed was recovered by the ORMVAs. Increasing costrecovery, therefore, became a central objective for subsequent Bank-supportedirrigation projects and sectoral adjustment loans.

5. Government priority in LSI shifted in the mid-eighties fromirrigation expansion through construction of new systems to rehabilitation ofexisting investments. Although this shift primarily resulted from a sharpcontraction of the funds available for public investments due to a budget crisis,it also reflected the need to address the issue of deteriorating irrigation

-2 -

facilities. Government realized that, beyond the emergency repair in the mostdeteriorated infrastructure, time had come to replace the distribution systemsof more than 30 years of age and pumping equipment older than 15 years.Furthermore, to meet the growing demand for water, it became clear that most ofthe main canals had to be upgraded by taking advantage of the modern technologyfor automatic flow control.

6. The First LSI Improvement Project. The first Large-Scale IrrigationImprovement Project (LSII-1), approved by the Bank in 1986 and supported by aloan of US$46 million (Loan 2656-MOR), was designed to implement priorityrehabilitation works while initiating a comprehensive reform program to increaseLSI overall efficiency and cost recovery. In addition to repairing, replacing,upgrading or completing the most deteriorated components of the existing LSIschemes, a set of policy reforms was launched, including OKMVA divestiture fromcommercial activities, increase of water charges and streamlining relationsbetween the ORMVAs and the Government. Another objective was to enhance ORMVAmanagement capabiM 4 ty through reorganization and introduction of improvedtechniques for cost accounting, O&M and agricultural extension. Five monthsbefore the loan closing date (June 30, 1993), the physical component, have beencompleted, the policy reforms satisfactorily implemented and the loan almostentirely disbursed. Partial but promising results have been achieved for ORMVAmanagement improvement with the installation of new management informationsystems (MIS) approaching completion in four ORMVAs, and the introduction ofcomputer-assisted electrical and mechanical maintenance methods which is ongoingin five ORMVAs.

7. Improved cost recovery was also an important result of the reformpackage implemented under LSII-1. Following the indexation of water charges forinflation, the billing of the entire volume delivered and the sharp increase inthe average collection rate up to 74 percent in 1991 and 79 percent in 1992, thetotal amounts recovered by the ORMVAs soared from DH liO million in 1985 to 410million in 1992, a remarkable performance. However, at the level set by theGovernment, the water charges cover on average only 85 percent of the actualdirect O&M costs, although in some ORKVAs water charges have significantlyexceeded O&M costs. Raising the level of water charges to conform with thecurrent legislation through new regulations and taking a first step to addressthe issue of the growing intersectoral competition for water would be a primaryfocus of LSII-2.

8. Lessons Learned from Prevlous Bank Involvement in LSI. The ORMVAshave a long standing, high capacity record for implementing infrastructure, asis evidenced by the Bank-financed Doukkala I and II projects (Loans 1201- and1416 MOR) approved in 1976 and 1977, respectively, and underscored in a 1989 OEDimpact study (Report No. 7876). The LSII-1 Project has been equally successfulin this respect. Through its long association with the Bank's portfolio inMorocco, the Directorate for Rural Equipment (DER) has also developed thecapacity for handling institutional and policy issues associated withBank-financed projects. Audits of LSII-1 accounts were satisfactorily carriedout by external auditors. The Government also demonstrated its commitmentthrough policy reforms aimed at ensuring overall LSI sustainability. However,experience has shown the difficulty of implementing in a relatively short periodin-depth and comprehensive restructuring of nine separate public authorities- the ORNVAs - operating under a variety of physical and social factors. Anotherlesson from LSII-1 implementation is the difficulty that the Bank faces to ensurethe efficient supervision of such complex restructuring operations involving nineentities at different stages of development and scattered over the entirernitntrv The nronnsed LSTT-2 wotuld take advantaae of the main lessons drawn from

the first project, namely the need to focus on a limited number of objectives,reduce the number of central directorates involved in the operations, establish& strong interdisciplinary project secretariat, mobilize adequate technicalassistance, and set up appropriate performance monitoring systems. The proposedproject would also allocate a realistic time span for all nine ORMVAs toimplement the reforms. On the Bank side, resources devoted to supervision ofLSII-2 are expected to be above Bank averages.

9. Relationship to Bank Country Assistance Strategy. The proposedproject fits well within the country assistance strategy for Morocco discussedin t.e Board on February 2, 1993. Through its substantial institution-buildingcomponent, the proposed project would contribute directly to the improvement ofpublic sector resource management, a key element of the Bank's assistancestrategy. Two other elements of the strategy, developing the private sector andalleviating poverty, would also be significantly, if less directly, served by theproject. In particular, additional ir.nome-generating potential afforded by thedevelopment of irrigated agriculture attracts, and subsequently benefits, therural poor. This effect is expected to operate most strongly in the areascovered by the Ouarzazate and Tafilalet ORMVAs where rural poverty is most acute.In addition, the project addresses several sector-wide policy issues, such astariff adjustments to promote more efficient water resource use and theimplementation of environmental management and monitoring plans. The needs ofpoor rainfed farmers are being addressed in several existing projects and anupcoming project specifically focusses on rural poverty.

10. Proiect Objectives. The proposed Second Large-Scale IrrigationImprovement Project (LSII-2) would continue to implement the same strategy asLSII-1 with the long-term objective of making large-scale irrigation moreefficient, cost-effective and sustainable. LSII-2 J specific objectives wouldbe to: (a) raise efficiency of water distribution in LSI systems throughrehabilitation of irrigation facilities and improved operation; (b) preservepublic investments in LSI through appropriate replacement and maintenance;(c) reduce the fiscal burden of O&M activities in LSI by increasing cost recoveryfrom beneficiaries and strengthening ORMVA management capability; (d) enhanceefficiency of water use by irrigators through improved irrigation techniques andappropriate on-farm investments; and (e) ensure environmental protection in theLSI subsector by implementing environmental monitoring plans. The agriculturaldevelopment aspects in LSI areas, such as agricultural research and extension,would be supported by a separate Bank-financed project (the Irrigated AreasAgricultural Services Project - IAASP -), which has just recently been appraisedand which is intended for implementation in tandem with LSII-2.

11. Project Description. The proposed project would include thefollowing fou- components: (a) infrastructure rehabilitation throughout the LSIschemes, including the reconstruction of distribution systems on 52,000 ha,upgrading of main canals serving 89,000 ha, improving subsurface drainage on19,000 ha, rehabilitating feeder roads on 1060 km and replacing pumping equipmentserving 130,000 ha ; (b) institutional strengthening of the nine ORMVAs and DER,including the provision of equipment, buildings, technical assistance andtraining to: (i) improve management techniques associated with O&M, accountingand environmental protection; (ii) establish a performance monitoring system, and(iii) prepare studies on policy reforms; (c) water use efficiency improvement,including pilot demonstrations of improved irrigation techniques, rehabilitationof the water metering systems, and relevant on-farm investments; and (d) policyreforms aimed at: (i) increasing cost recovery, (ii) streamlining the respectiveroles of the Government, ORMVAs and farmers through management improvement plans(MIPs), water delivery contracts and creation of iwater user associations, (iii)

.4.

increasing private sector participation in O&M activities, and (iv) updating LSIinstitutional framework.

12. Pro1ect Costs. Total project costs are estimated at US$367.3 millionequivalent including contingencies, with a foreign exchange component ofUS$174.3 million. About 82 percent of total costs would be allocated to thephysical investments comprising civil works and equipment, 5 percent to technicalassistance and training, 8 percent to private on-farm investments and 5 percentto other incremental costs.

13. Proiect Financing. The public investments supported by the projectwould be financed by the Government (US$98 million) and the Bank (US$215 million)with a contribution provided by two ORNVAs (US$35.3 million). On-farminvestments required to improve irrigation techniques would be financed byfarmers (US$19 million) with credit provided by the banking system. TheGovernment is seeking cofinancing from France (Caisse francaise de developpement- CFD -) and Germany (Ireditanstalt ftir Wiederaufbau - KfW -) to financeinvestments tentatively estimated at about US$23 million equivalent, permittingan equivalent reduction in the Government's contribution.

14. Proiect Implementagion. The project would be implemented A_ver asix-year period. Overall responsibility for project implementation would bevested with MARA and del gated to the nine ORNVAs for physical rehabilitation andinstitution building as spelled out in a project agreement with each of the0ORKVAs; DER would ensure project coordination and preparation of policy reforms.Steps would be taken by the project to introduce innovative mechanisms formonitoring ORMVA financial and environmental management by two interministerialcommittees, while overall coordination would be reviewed by a National Committeefor Project Coordination (CNCP).

15. Project Sustainability. Enhancing the sustainability of the LSIsubsector is the key objective of the project. The policy reforms andinstitutional restructuring already implemented under LSII-l and those proposedunder LSII-2 should make a significant step towards effective system maintenance,water resources conservation, environmental protection and fiscal transferreduction. Increasing water charges would make a decisive contribution to LSIsustainability. In this respect, appropriate regulations would be made effectiveby the Government before June 1995 to cover 100 percent of direct O&M costs anda reasonable portion of the depreciation by all ORMVAs. In the mean time, theaverage collection rate would be increased above 90 percent by the ORMVAs.Increasing agricultural productivity and farmer capacity to pay for futureincreases in water charges would become of a crucial importance and would be thecentral objective of the parallel IAASP.

16. Rationale for Bank Involvement. Between 1965 and 1977, the Banksupported the LSI subsector with six operations aimed at expanding the irrigatedarea. The LSII-l Project supported the shift in Government priorities towardsrehabilitating and restructuring of existing LSI systems. BanLt involvement ina Second LSI Improvement Project would carry on the effort to make irrigationcost-effective and sustainable. The proposed project would continue to supportthe policy reforms undertaken by LSII-l such as increasing the role of theprivate sector, increasing ORMVA accountability and involving farmer associationsin O&M activities, and build upon the policy initiatives for the irrigationsubsector supported by the Second Agricultural Sector Adjustment Loan (ASAL-II)such as increasing cost recovery. By focusing on the ORMVAs' strategicmanagement and public utility function, the proposed project would give the Bankbetter leverage to overcome the most sensitive subsectoral issues associated with

the reduction of budget transfer, promotion of the private sector andenvironmental protection. The water use efficiency component would be part ofthe initiative that the Bank intends to support in Morocco for therationalizaXion of water resource management countrywide.

17. Princinal Actions A8reed Upon. Assurances were obtained duringnegotiations that DER would: (a) hold a high level joint mid-term review; (b)present by June 1994 and implement by June 1995 an action plan aimed at raisingwater charges; (c) sign in a timely way MIPs with seven ORMVAs; and (d) adopt awater management plan for the Souss aquifer.

18. An agreement was reached that the Government would prepare and adopt,after consultatioii with the Bank, a reform program to improve LSI long-termsustainability, including the restructuring of the water tariff, improvement ofconditions for water delivery to farmers, adoption of a long-tevm rehabilitationplan and revision of the LSI institutional framework.

19. Assurances were obtained during negotiations that the ORMVAs would:(a) prepare revolving three-year action plans; (b) employ consultants to assistin the final design and supervision for rehabilitation works; (c) improve thecollection rate of water charges and allocate a reasonable portion of theproceeds for financing rehabilitation under the project; (d) timely pay energybills to the electricity authority; (e) rehabilitate the metering systems foron-farm water delivery; (f) complete in a timely way the introduction of improvedaccounting and O&M procedures; and (g) implement environmental monitoring plans.

20. Government concurrence was obtained on the signing of a projectagreement by the Bank and the nine ORNVAs as part of the legal documents. Forthe first time, the Bank would establish a direct relationship with the ORMVAs,reflecting the Government's and the Bank's desire to make the ORKVAs moreindependent and accountable. This would enable them to start dealing directlywith financial institutions. An agreement was also reached in principle that theBank would consider, at the mid-term review and upon agreed criteria,possibilities to provide for direct lending to ORNVAs that have achieved asatisfactory level of financial viability and mapagement efficiency.

21. Assignment of key staff for the project management unit and creationof two interministerial committees to coordinate project implementation andmonitor ORMVAsI financial performance would be conditions of loan effectiveness.

22. Environmental Aspects. The project was classified as falling withinCategory "B" since it builds on existing irrigation facilities and improvesefficiency of water management. In addition, it specifically addresses theproblems of waterlogging, soil salinity and water-borne diseases identified insome areas during project preparation. Provision has been made for theimplementation of environmental management and monitoring plans at both the ORMVAand central levels. Detailed guidelines are provided by the environmentalassessment prepared by consultants under Bank supervision and financed from theJapanese Grant Fund.

23. Project Benefits. Economic benefits would accrue from:(a) incremental production resulting from increased water availability andreliability due to infrastructure rehabilitation and improved system operation;(b) savings on O&M costs (energy in particular) resulting from rehabilitation andimproved O&M procedures; (c) savings on transport costs due to roadsrehabilitation; and (d) other benefits resulting from more efficient on-farmwater use, delayed replacement due to improved maintenance, reduced budgetary

transfers and improved environment.l protection. Economic evaluation carried outon the major subprojects for infrastructure rehabilitation, and representing65 percent of the total cost of rehabilitation, indicates an economic rate ofreturn of 23 percent. Financial analysis confirms that farmers could finance therequired investment for improved water use and, with more efficient irrigationtechniques, pay higher water charges. In public finance terms, the ORMVAs wouldfinance the entire direct O&M costs at the end of the project and make asignificant contribution to infrastructure reh.iilitation.

24. Risks. The major risks in project implementation are delays insystem rehabilitation and institution building, but these risks are limited sincethe proposed project carefully builds upon the experience of the previous LSII-l,and because prepararion of the physical and institutional components is welladvanced. The risks of slower institutional srrengthening would be reduced bythe significant technical assistance component, new monitoring mechanisms beingestablished by DER, direct Bank dialogue with the ORMVAs through the projectagreement, close supervision by Bank missions and in-depth performance assessmentduring a mid-term review. Government's commitment, demonstrated under LSII-1,to increasing efficiency in the LSI subsector would have a determinant impact onthe project's satisfactory implementation.

25. Recommendation. I am satisfied that the proposed loan would complywith the Articles of Agreement of the Bank and recommend that the ExecutiveDirectors approve it.

Lewis T. PrestonPresident

AttachmentsWashington, D.C.March 10, 1993

-7-

Schedule A

KINGDOM OF MOROCCO

SECOND LARGE-SCALE IRRIGATION INPROVENENT PROJECT

Estimated Cost and Financing Plan

Estimated Proiect Costs Local Foreign Total- US$ million ---------

Civil Works 99.4 66.3 165.7

Equipment/Vehicles 23.1 38.8 61.9

Technical Assistance 2.7 6.4 9.1

Training & Studies 2.4 2.9 5.3

On-Farm Investments 9.7 12.6 22.3

Sub-total 137.3 127.0 264.3

Recurrent Costs 6.0 8.9 14.9

Base Costs 143.3 135.9 279.2

Physical Contingencies 18.5 15.5 34.0Financial Contingencies 31.2 22.9 54.1

Total Project Costs 193.0 la 174.3 367.3

,L Including US$75 million of taxes and duties.

Financinz Plan Local Foreign Total-------- US$ million -------

Government 98.0 - 98.0Bank 215.0 215.0ORMVAs 35.3 - 35.3Beneficiaries 19.0 19.O

Total 152.3 215.0 367.3

-8-

Schedule B

KINGDOM OF MQROCO

SECOND IARGE-SCALE IRRIGATION IMPROVEMENT ?ROJECT

ESTIMATED COST AND FINANCING PLAN

Summary of Progosed Procurement Arrangements

(US$ million)

Procurement Method TotalProject Element ICB LCB Other N.B.F Cost

Civil Works 38 180 - - 218(23) (108) - - (131)

Equipment and Vehicles 53 25 3 - 81(45) (18) (2) - (65)

Technical Assistance - - 12 - 12= - (12) - (12)

Training 7 7= = , (7) - (7)

On-farm investment - - - 29 29

Recurrent cost - - 20 20

TOTAL 91 205 22 49 367(68) (126) (21) - (215)

Figures in parentheses are the amounts financed by the Bank.NBF: Not Bank-financed

Disbursement Schedule

(US$ million)

IBRD Fiscal Year1994 1995 1996 1997 1998 1999 2000 2001

Disbursements

Annual 11 26 30 34 38 40 26 10Cumulative 11 37 67 101 '139 179 205 215

.-9

Schedule C

KINGDOM OF MOROCCO

SECOND LARGE-SCALE IRRIGATION IXPROVEMENT PROJECT

Timetablh of Key Project Processing Events

(a) Time Taken to Prepare Project : 24 months

(b) Prepared by : Government, FAO/CP and Bank

(c) First Bank Mission June 1991

(d) Appraisal Mission Departure February 10, 1992

(e) Negotiations February 15-25, 1993

(f) Planned Date of Effectiveness January 1994

(g) List of Relevant PCRs and PPARs World Bank Experience withIrrigation Development -Socio-Economic, Institutionaland Teo.nical Impact Lessons -Volume III, Morocco (ReportNo. 7876) - Operationsgvaluation Department,June 15, 1989.

- 10 -

Sohedule D(pane i of 2)

The Status of Bank Grou, Operations In MoroccoStatement of Bank Loans and IDA Credis

(As of December 31. 19921US$ Million Amount

Loan or Fiscal flees cancellatlons)Credit No. Year Borrower Puose Bank IDA Undisbursed

Sixty-eight loans and five credits fully disbursed 3,e88.78 45.16

Of which SALs. SECALs, and Program Loans /a

2377 1984 Kingdom of Morocco Ind. Tr. Pol. (SAP) 150.402590 1985 Kingdom ot Morooco Agric. Sector I 100.002e04 19888 ingdom of Morocco Ind. Tr. Poi. AdJ. 11 200.002664 1986 Kingdom of Morocco Education Sector I 150.003001 1989 KGngdom of Morocco SAL I 200.002820 1987 Kingdom of Morocco PERL I 239.582885 1988 Kingdom of Morocoo Agr. Sector 11 225.00

Sub-total 1264.90

2217 1983 Kingdom of Morocco Ag. Dev. Oulmes 13.50 2.472253 1983 Kingdom of Morocco Small & Med. Irrig. 34.00 4.302572 1985 Kingdom of Morocoo Health Development 28.40 7.952656 1986 Kingdom of Morocco Large lnrgn. Improv. 46.00 3.072657 1986 PortAuthority Port Projet 22.00 2.302779 1987 Kingdom of Morocco Voc. Training 11 22.30 3.442798 1987 ONPT Telecommunications I 116.00 37.502806 1987 BNDE Ind. Exp. Finance I 69.08 3.342825 1987 Kingdom of Morooco Nati. Water Supply 40.00 40.222826 1987 Kingdom of Morocco Greater Casablanea Sew. 60.00 42.882910 188 Kingdom of Morocco Power Distribution 90.00 71.232954 1088 Kingdom of Morocco 8 & M irrig. if 23.00 17.793028 1988 Kingdom of Morocco Rural Primary Education 8S00 54.383038 1989 Kingdom of Morocco Agric. Ext. & Res. 28.30 22.753048 1989 Kingdom of Morocco Public Admin. Loan 2330o 16.073088 1980 CNCA National Agric. Credit 190.00 8.533121122 1990 CiH Housing Finance 80.50 2.903130 1990 Kingdom of Morocco Industrial Finance 170.00 19.043158 1990 Kingdom of Morocco Forestry I 49.00 44.703168 1990 Kingdom of Morocco HighwaySector 79.00 40.183171 1990 Kingdom of Morocco Health Sector 104.00 93.663262 1991 Kingdom of Morocco Rural Elect. li/b 114.00 114.003283 1991 Kingdom of Morocco Pon Sector 33.00 30.703284 1991 ODEP Port Sctor 99.00 84.903295 1991 Kingdom of Morocco Rural Basic Educ. Dev. 145.00 145.00

* 3365 1991 Kingdom of Morocco Financial Sector Dev. 236.00 132.853403 1902 Kingdom of Morocco Agric. Sector lnvest 50.00 20.71

* 3463 1992 Kingdom of Morocco SAL 11 275.00 137.00

TOTAL 5,710.56 45.16 1,203.86

Of which has been repaid (only amorizaton) 1.494.77 8.12Total held by Bank and IDA 4,215.79 37.04

Amount sold 20.11of which repaid 20.11

Total Undisbureed 1,203.86

* SAL. SECAL or Program Loan/a Approved after FYsorb Not yet effectiveN:.MN1DRWMOR-MOP

- 11 - Schedule D(page 2 of 2)

Statement of IFC Investments In Morooco(As otecember 31. 19021

Orhianal Gross CommitmentFiscal (USS Million)Year Obligator Type of Business Loan Eiquity Total

1962 Banque Nationale pour Development Finance 42.61 1.64 44.051978 le Dev. Econ. (BNDIE1983198s

1980 Societe Miniere du Bou- Mines 12.99 2.38 15.37Gaffer (SOMIFER)

1982 Cimenterie Nouvelle Cement Production 29.30 2.10 31.401983 de Casablanca (CINOUCA)1992

1985 Fruitlere Marocaine Agrolndustry 4.97 - 4.97de Transformation(FRUMAT)

1987 Credit Immobilier et Tourism 65.93 - 65.93Hotelier (CIH)

1987 Settat Filature Textile Factory 3.28 1.33 4.61(SETAFIL)

1989 Compagnle Maritime Ferry Service 4.3C - 4.30Maroco-Notvegienne(COMARiT

1991 Cerame Afrique Ceramics 3.47 1.70 6.17Industries (CAl)

1992 CIMASFI Cement 16.69 - 15.69

1992 Banque Commerciale de Banking 12.00 - 12.00Maroc (BCM)

1992 Banque Marocaine Banking 12.00 - 12.00du Commerce Exterieur (BMCE)

1992 Credit du Maroc (CDM) Banking 8.00 - 8.00

1992 Wafabank Banidng 8.00 - 8.00

1993 Intemational de Capital Markets - 4.1 4.10Financement et deParticipation (INTERFINA)

Total gross commitments 222.44 13.16 231.49

Less cancellations, terminations, repayments.sales and exchange adjustments 43.11 3.91 47.02

ToWt commitments held by IFC 179.33 9.24 18s.s7

of which undisbursed 24.85 24.e6

IFC net. Does not Include participants from commercial banks

IBRD 23744

0Th0d e -k o lEoby #~ Th. ft ." E

Woooo -o of Th Wodd RoJkaIh yw f TUAN O RMVAood A. booododo dm

ftA o,p d. noR k-* 00 .pw ri e W m p &. 6; AL HOCEIMA 9, MOULOUYA000 of k.Wd BOOkd.obl. t$.Mm0y 00 05

LOUKKOS T. _00 ro

GtU KWA LASOU OATE

b ei' R N4r V A -

Tooo,do..ot ~j,,OUARAR .

CASAIIANCJA t| < 4

ORMVA 1/1sETAl >S'( Xw) /- ,KJMOROCtDOUKKRALAS 2;;s(.t>//~i\

~ s"'~ SECON LRGE SAL LRRGATRIO A

> ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~.-i} ,ts- BALoA50ES

SAFI~ ~ ~ ~ ~ ~~~A

AGADN~ ~ ~ ~ ~ ~~~~~~~~~~~ AW /SCADSAe 0z

SE E T-- AN CIRESC

LAG.CL IRRIGATIOA A AS E R I

~~~~~~~~~~~~~~~~~ETIZNG IRIGTED AREASI) POVINE CPTL/ VElURE ISIEGATED ~ * NATIONAL CASITALS

rI r R IIVERSS

2t i Ee -S _ ~~~~~~~~~~~~~~~MEAN ANNUAL RAINFALL IN MILLIMETEBS 285_

S A1

RAILROADS~~~~~~~APILTSo