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AFRICAN DEVELOPMENT BANK
PROGRAMME : GREEN MOROCCO PLAN SUPPORT PROGRAMME
COUNTRY : KINGDOM OF MOROCCO
APPRAISAL REPORT
June 2012
Appraisal Team
Team Leader : Rafâa MAROUKI, Principal Agro-economist, OSAN.1 Team Members : Williams DAKPO, Regional Coordinator, ORPF.1 Laurette DADE, Regional Coordinator , ORPF.2 Laouali GARBA, Environmentalist, OSAN.4 Driss KHIATI, Agricultural Expert, MAFO Mohamed EL ARKOUBI, Procurement Specialist, MAFO Sector Director: Abdirahman BEILEH, Acting Director, OSAN Region Director: Nono MATONDO, ORNB Sector Division Manager: Abdoulaye DAGAMAISSA OSAN.1
Peer Reviewers
Mohamed OULD TOLBA, Chief Agro-economist, OSAN.1
Mohamed Aly OULD CHEICKH AHMED, Irrigation Specialist, OSAN.2 Achraf TARSIM, Macro-economist, OSGE.1 Emanuel DIARRA, Principal Economist, MAFO Boubacar-Sid BARRY, Operations Officer, MAFO
TABLE OF CONTENTS
Currency Equivalents/Fiscal Year/Weights and Measures ................................................................................... i
Acronyms and Abbreviations ................................................................................................................................ ii
Loan Information ................................................................................................................................................. iii
Executive Summary ............................................................................................................................................. iv
Programme Logical Framework .......................................................................................................................... vi
Programme Implementation Schedule .............................................................................................................. viii
I The Proposal ..................................................................................................................................................... 1
II Country and Programme Context ................................................................................................................. 1
2.1 Government’s Development Strategy and Medium-Term Reform Priorities ......................................... 1
2.2 Recent Socio-economic Developments, Prospects, Constraints and Challenges .................................... 2
2.3 The Sector and Related National Development Programme .................................................................. 3
2.4 Status of Bank Group Portfolio .............................................................................................................. 5
III Rationale, Main Elements of Programme Design and Sustainability ....................................................... 6
3.1 Linkages with the CSP, Assessment of Country Preparedness and Underlying Analytical Elements ... 6
3.2 Collaboration and Cooperation with Other Donors ................................................................................ 9
3.3 Results of Similar Completed or Ongoing Operations and lessons learnt ........................................... 10
3.4 Linkages with other Bank Operations .................................................................................................. 11
3.5 Bank’s Comparative Advantages.......................................................................................................... 12
3.6 Application of Good Practices Principles as regards Conditionalities .................................................. 12
IV Proposed Programme .................................................................................................................................. 12
4.1 Programme Objectives.......................................................................................................................... 12
4.2 Programme Components and Expected Outcomes ............................................................................... 13
4.3 Financing Requirements and Arrangements ......................................................................................... 17
4.4 Programme Beneficiaries ...................................................................................................................... 17
4.5 Impact on Gender ................................................................................................................................. 18
4.6 Environmental Impact .......................................................................................................................... 18
4.7 Impact on Capacity and Institution Building ........................................................................................ 19
V Programme Implementation, Monitoring and Evaluation ...................................................................... 19
5.1 Implementation Arrangements ............................................................................................................. 19
5.2 Monitoring and Evaluation Arrangements............................................................................................ 20
VI Legal Instruments and Authority ............................................................................................................... 20
6.1 Legal Instruments ................................................................................................................................. 20
6.2 Conditions Associated with Bank’s Involvement ................................................................................. 20
6.3 Compliance with Bank Policies ............................................................................................................ 21
VII Sustainability and Risk Management ....................................................................................................... 21
7.1 Sustainability ........................................................................................................................................ 21
7.2 Potential Risk Management .................................................................................................................. 21
VIII Recommendation ...................................................................................................................................... 22
____________________________________________________________________________________________________________________
This report was prepared by Mr. R. MAROUKI, Principal Agro-economist OSAN.1 following an appraisal mission to Morocco from 13
to 25 February 2012. It also received inputs from sector experts, namely: William DAKPO [ORPF.1], Laurette DADE [ORPF.2],
Laouali GARBA [OSAN.4], Driss KHIATI [MAFO], Mohammed EL ARKOUBI [MAFO], as well as close discussions with the
Programme Preparation and Appraisal Committee and various Government entities involved.
This document is for official use only. Its content shall not be disclosed without the authorization of the African Development
Bank.
i
ANNEXES
Appendices
Appendix 1: Government’s Sector Development Policy Letter 9
Appendix 2: Matrix of Programme Measures 7
Appendix 3: Conditions Precedent to Budget Support 3
Appndix 4: Key Macro-economic Indicators 1
Appendix 5: Status of Donor Support for the Green Morocco Plan 1
Appendix 6: Bank’s Ongoing Operations Portfolio in Morocco 1
Technical Annexes: Volume 2
Annex 1: Analysis of Proposed Reforms by Component
Annex 2: Environmental and Social Assessment (ESA and ESMP)
Annex 3: Fiduciary Risk Assessment
Annex 4: Procurement
Annex 5: List of Legal Instruments and PAPMV Planned Studies
Annex 6: PAPMV Performance Measurement Framework
Annex 7: Changes in MAPM Budget from 2001 to 2011
Annex 8: Ministry of Agriculture’s Medium-Term Expenditure Framework
List of Boxes and Illustrations
Box 1: Brief Presentation of PMV Status and Expected Impacts
Figure 1: Sector Breakdown of Bank Operations
List of Tables
Table 1: Main Linkages between PAPMV and other Bank Operations
Table 2: Budget Balance and Financing Requirements 2012-2014
Table 3: External Financing of Green Morocco Plan (PMV)
Currency Equivalents
May 2012
UA 1 = MDH 13.0697
EUR 1= MDH 11.1382
UA 1 = EUR 1.17341
USD 1 = MDH 8.4300
Fiscal Year
1 January – 31 December
Weights and Measures
1 kilometre (km) = 1000 m
1 km2 = 1000 m2
1 hectare (ha) = 10 000 m2
1 ton = 2204 pounds (lbs)
1 kilogram (kg) = 2.200 lbs
1 metre (m) = 3.28 feet (ft)
1 millimetre (mm) = 0.03937 inch (“)
1 kilometre (km) = 0.62 mile
1 hectare (ha) = 2.47 acres
ii
Acronyms and Abbreviations
ADA
ADEREE
:
:
Agency for Agricultural Development
Agency for Renewal Energy Development and Energy Efficiency
ADB : African Development Bank
AFD : French Development Agency
APMV : Support for Green Morocco Plan
AUEA : Agricultural Water Users’ Association
BAM : Bank Al-Maghrib (Central Bank of Morocco)
WTC
CSP
:
:
Water Table Contract
Country Strategy Paper
DPA : Provincial Directorate of Agriculture
DRA : Regional Directorate of Agriculture
DSS : Directorate of Strategy and Statistics
ESMMP : Environmental and Social Management Master Plan
EU : European Union
FAO : Food and Agriculture Organization of the United Nations
FDA : Agricultural Development Fund
RM : Road Map
FTA : Free Trade Agreement
GM : Government of Morocco
IBRD : International Bank for Reconstruction and Development
IGA : General Inspectorate of Agriculture
IGF : General Inspectorate of Finance
IL : Localized Irrigation
INRA : National Institute of Agricultural Research
MAFO : Morocco Country Office
MAPM : Ministry of Agriculture and Sea Fishery
MDG : Millennium Development Goal
MDH : Moroccan Dirham
ME : Monitoring and Evaluation
MEF : Ministry of Economy and Finance
MEMEEE : Ministry of Energy, Mines, Water Resources and Environment
MTEF : Medium-Term Expenditure Framework
NAMA
PSO
ONSSA
:
:
:
Nationally Appropriate Mitigation Actions
Programme Support Operation
National Food Safety Authority
OPA : Agricultural Professional Organization
ORMVA : Regional Agricultural Development Authority
PAPMV : Green Morocco Plan Support Programme
PAR : Regional Agricultural Plan
PMV : Green Morocco Plan
PNEEI : National Irrigation Water Conservation Programme
PPP : Public-Private Partnership
SESA : Strategic Environmental and Social Assessment
SGG : Secretary General of the Government
TFP : Technical and Financial Partners
UA : Unit of Account
VAT : Value Added Tax
iii
LOAN INFORMATION
Client Information
BORROWER: KINGDOM OF MOROCCO
EXECUTING AGENCY: Ministry of Agriculture and Sea Fishery
(Directorate of Strategy and Statistics)
Financing Plan
Source of Financing
Amount (EUR)
Instrument
ADB
EUR 105 Million
ADB Loan
Key Information on ADB Financing (to be confirmed during negotiations)
Loan Currency
Euro (EUR)
Type of Interest Rate : Floating base rate with a free fixing
option Base Rate (Floating) 6-month Euribor
Contractual Margin 60 base points (bps)
Lending Margin : Bank lending margin in relation to the 6-
month Euribor. This margin is revised
every year on 1 January and 1 July. Commitment Charge In the event of disbursement delays with
reference to the initial schedule
(specified in the loan agreement) a
commission of 25 bps per annum will be
applied to the undisbursed amounts.
This charge will be increased by 25 bps
every six months up to a maximum of
75 bps per annum. Other Charges None
Tenor 20 years maximum
Grace Period 5 years maximum
Schedule – Main Programme Milestones
Activities Date 1. Concept Note Approval 8 February 2012 2. Loan Agreement Negotiations 3-4 July 2012 3. Board Presentation 18 July 2012 4. Effectiveness September 2012 5. Disbursement of First Tranche October 2012 6. Supervision December 2012 7. Mid-Term Review June 2013 8. Disbursement of Second Tranche October 2013 9. Supervision September 2013 10. Completion Report June 2014
iv
EXECUTIVE SUMMARY OF THE PROGRAMME
1. Programme Overview
1.1 This programme document proposes a reform support loan for the agricultural sector in
support of the Green Morocco Plan (PMV) targeting particularly agricultural water. The
programme’s main characteristics are as follows:
Programme Name :
Geographic Coverage :
Overall Duration :
Financing :
Programme Type :
Green Morocco Plan Support Programme (PAPMV)
Nationwide
24 months
ADB loan : EUR 105 million (equivalent to UA 90 million) in two tranches
Sector Budget Support
1.2 The idea of this Green Morocco Plan Support Programme (PAPMV) was initiated during
the CSP 2007-2011 completion report preparation mission to Morocco in March 2011 when the
Government of Morocco (GM) and the Bank showed common interest in promoting green growth1
by providing support to the PMV. The programme design took into consideration the lessons learned
and good practices of completed and on-going budget support programmes (PASEAU, PARCOUM,
PARAP, PADESFI, PUEN, etc.), particularly concerning design, targeting of measures and
conditionalities. The programme design was based on a concerted approach actively involving
stakeholders right from programme identification (various administrative and professional entities,
private sector, etc.) and an integrated framework to enhance synergies and possible
complementarities between agricultural, water, environmental and energy strategies to better support
the PMV. The Bank’s loan will be disbursed in two tranches over the 2012-2013 period. The two
tranches are justified by the type of reforms to be undertaken, the reduction of transaction costs, the
enhancement of efficiency and the country’s strategic attachment to the reforms of the second
tranche. The first tranche of EUR 60 million will be disbursed in October 2012 following fulfilment
of the related conditions. The second tranche of EUR 45 million will be disbursed in October 2013
after a mid-term review of the programme and fulfilment of conditions relating to this tranche.
1.3 With respect to the Bank’s strategies, the programme is consistent with: (i) the Bank’s
Long-Term Strategy and Medium-Term Strategy (2008-2012) ; (ii) the CSP (2012-2016); (iii) the
Agricultural Sector Strategy (2010-2014); and (iv) the integrated water resources management
policy. In terms of the country, it is in line with the new Government’s strategy (2012-2015), and
particularly falls within the strategic framework of: (i) the Green Morocco Plan (2008-2020) ; (ii) the
National Water Strategy (2009-2030) ; (iii) the Environmental and Sustainable Development Charter
(2010-2030); (iv) the New National Energy Strategy (2008-2020); and (v) the Industrial Emergence
Plan (2009-2015).
2. Expected Programme Outcomes
2.1 This Programme seeks to support the implementation of the Green Morocco Plan – PMV
[2008-2020] by providing targeted assistance for the sustainable management, development and
conservation of agricultural water within a context of growing scarcity of this resource. The strategic
objective of the programme is to contribute to strengthening the competitiveness of the agricultural
sector for inclusive economic growth. The specific objective is to improve the business climate and
ensure sustainable agricultural water management. The expected programme outcomes concern the
improvement of the institutional framework for agricultural water management and development in
line with the guidelines of the Green Morocco Plan. It will focus on reform measures targeting the
following four complementary components: (i) support for the modernization of irrigation
infrastructure; (ii) improvement of agricultural water governance and sustainable management; (iii)
promotion of the business climate and agricultural water development; and (iv) promotion of gender,
water resources protection, and energy conservation.
1 Growth ensuring complementarity and synergy between the economic, social, environmental and institutional
components of sustainable development
v
3. Needs Assessment
3.1 The Bank has a special interest in the cross-cutting issue of agricultural water for the PMV
and the strategic guidelines outlined by the New National Water Strategy and other strategies
(industrial emergence, environment charter, energy strategy, etc.). This interest is justified by the
fragility of this resource and its importance for the economy. In fact, Morocco, which is considered
as a water stress country, is facing high pressure on its water resources which may worsen under the
effect of climate change. Agricultural water is a vital resource to be preserved and managed
efficiently and sustainably because: (i) irrigation is water intensive (consumes 80% to 85% of
mobilized water resources); (ii) losses related to conventional irrigation systems are significant; and
(iii) mobilized water resources are under-utilized.
3.2 The programme, which takes the Bank’s comparative advantages, the need for continuity
and consolidation of achievements, as well as complementarity with other donors into consideration,
is needed to: (i) support the GM in the agricultural water reforms undertaken; (ii) support strategic
agricultural water planning efforts; (iii) improve water governance through increased involvement of
the stakeholders and promotion of public-private partnership in irrigation; (iv) make the agricultural
sector play a decisive role by improving the business climate through the promotion of value chains
for the development of agricultural water; and (v) promote gender, protect water resources and
develop combined energy and water conservation initiatives so as to enhance the impact of the PMV
on inclusive growth and environmental protection, and make it “doubly green”.
4. Bank’s Value Added
In view of the Bank’s great experience in budget support in various sectors in Morocco, and the
experience acquired in the area of Water, Environment and Energy, it is capable of supporting this
inter-sector operation geared towards improved integration and coherence of measures. This
operation will be an opportunity to foster complementarity and synergy between: (i) the various
national departments concerned; (ii) the various instruments developed by the Bank (budget support
to initiate reforms targeting agricultural water, investment loan to support infrastructure related to
irrigation water conservation provided under PAPNEEI, and technical support to back up
investments and reforms); and (iii) the operations of other development partners, particularly the
World Bank, the European Union, and the French Development Agency, supporting the PMV.
Indeed, the proposed reforms will help to support investments in on-going and planned operations, as
well as consolidate their impacts in terms of agricultural water management, development and
protection.
5. Institution and Knowledge Building
PAPMV will contribute to institution building of the public administration, grass-roots associations,
professional organizations and the private sector. In particular, the preparation and implementation of
planning (Road Map, Irrigation Map, studies, etc.), management (demand management, integrated
water resources management, etc.), development (agropolis, etc.), protection (Regional Observatories
for the Environment, NAMA, etc.) and business climate promotion (agricultural insurance, FDA
incentive mechanism, etc.) tools, as well as the various draft statutory instruments provided for by
PAPMV contribute to knowledge and capacity building.
vi
EXPECTED RESULTS-BASED LOGICAL FRAMEWORK
Country and Programme Name : Morocco – Green Morocco Plan Support Programme– (PAPMV) Programme Goal: Contribute to strengthening agricultural sector competitiveness for inclusive economic growth by improving the business
climate and sustainable agricultural water management.
RESULTS CHAIN
PERFORMANCE INDICATORS MEANS OF
VERIFICATION
RISKS
/MITIGATION
MEASURES Indicators
Baseline
Situation Target
IMP
AC
T Agricultural sector
productivity and
competitiveness are
improved
Increase in agricultural
export value
MDH 10
billion in 2011
MDH 18 billion in
2014 and 44 billion in
2020
Reports of the Ministry of
Trade and Ministry of the
Economy and Finance
(MEF)
OU
TC
OM
ES
1. Planning and
implementation of
Agricultural Water
(AW) infrastructure are
improved
Availability of planning
tools
Equivalent additional
volume of water saved
(PEEI & PEI)
Not available
(NA)
0
SIG Irrigation
established before June
2014
At least 360 Mm3 saved
in 2014
SIG Irrigation
DIAEA/MAPM Reports
DIAEA/MAPM Reports
Risks
- Inadequate inter-sector and
inter-TFP coordination capacity
- Socio-political context
- Vagaries of the weather and
extreme events
Mitigation Measures
- Establishment of a Steering
Committee at MEF and
strengthening of the
Agriculture/PMV Thematic
Group,
- Government’s reform
measures
- PMV measures: insurance,
water management, and
localized irrigation development
2. Agricultural water
governance is
enhanced
Public-private partnership
(PPP) options in PI Dar
Khroufa irrigation
validated
Increase in the number of
efficient AUEA
PPP Road
Map (RM) not
available
0
RM and Feasibility
Study of a PPP
available before June
2014
At least 15% of
AUEA are efficient in
2014
RM and Feasibility study of
a PPP in irrigation
AUEA Capacity Building
Plan/ AUEA performance
status
3. Investment
environment and water
productivity are
improved
Additional private
investments in Sub-Sector
Programme Contracts
Additional value added
generated by water
conservation investments
(MDH)
0
0
At least MDH 5 billion
in 2014
At least MDH 400
million in 2014
PMO/ programme contracts
DDFP
Study on DIAEA value
added
4. The social,
environmental and
energy dimensions of
the PMV are reinforced
Additional work positions
for women and youths
Number of Regional
Observatories for the
Environment and DD
functional
0
-
5 000 additional work
positions created by
2014
At least 12 OREDD
functional in 2014
GE and Youth Action Plans
PMO of DDFP
OREDD Progress Reports
COMPONENT 1 : SUPPORT FOR THE MODERNIZATION OF IRRIGATION INFRASTRUCTURE Risks
- Overexploitation of water
resources
- Marginalization of some
groups of players
Mitigation Measures
- Inter-sector consultations on
water
- Specific inclusion mechanisms
OU
TP
UT
S
1.1 Irrigation
infrastructure planning
instruments are
available
Road Map (RM) and
National Irrigation Map
(CNI)
NA
RM and CNI available
in 2014
RM and CNI
PNEEI and PEI
monitoring-evaluation
system
NA Monitoring-evaluation
system established
before June 2014
Monitoring-evaluation
system
1.2 PNEEI, PEI and
PMH programme
development studies
are available
PNEEI, PEI and PMH
programme development
studies
NA Studies on the
development of
196,750 ha prepared
before June 2014
Feasibility studies of
development projects
1.3 Integrated planning
coordination
mechanism is
established
Integrated agricultural
water planning
coordination mechanism
established
Non-existent Integrated Planning
Committee functional
in 2013
Integrated Planning
Committee Minutes and
Report
COMPONENT 2 : IMPROVEMENT OF AGRICULTURAL WATER GOVERNANCE AND SUSTAINBLE MANAGEMENT Risks
- Differing interests of
stakeholders
- Lack of support from users
Mitigation Measures
-Sensitization and
communication
- Study on the political impact
of reforms (PPP, AUEA)
2.1 Water service
reforms are
consolidated
Reform impact study
Road Map of ORMVA
Reforms
NA
NA
Study prepared in 2013
Road Map of Reforms
prepared in 2013
Study Report
Road Map of ORMVA
Reforms
2.2 AUEAs are
strengthened
AUEA capacity building
programme
Good Localized Irrigation
Practices Guide prepared
and disseminated
NA
NA
Programme
implemented before
June 2014
Guide prepared in 2012
and disseminated in
2013
AUEA Capacity Building
Programme
Guide / DIAEA statements
on the dissemination of the
Guide
2.3 Integrated Water
Resources
Management (IWRM)
is strengthened
Water Table Contract
Road Map for artificial
water table recharge
Master plan on TWW use
in irrigation
1
NA
NA
2 studies conducted and
2 contracts signed in
2013
Road Map for artificial
recharge prepared in
2013
Master Plan prepared in
2013
Studies finalized and
contracts signed
Road map for artificial water
table recharge
Master Plan for TWW use
in irrigation available
vii
COMPONENT 3 : PROMOTION OF THE BUSINESS CLIMATE AND DEVELOPMENT OF AGRICULTURAL WATER
Risks
Differing interests of
stakeholders
Low support from the private
sector and inter-trade
organizations
Mitigation Measures
Sensitization and
communication
Consultation framework and
arbitration mechanisms
3.1 Investment climate
improved
Number of aggregation
projects subsidized
Average rate of marketing
of Meknès and Berkane
agropolis lots
Number of sub-sectors
insured
Number of risks covered
by Agricultural Insurance
46
10%
1
1
226 before June 2014
40% before June 2014
At least 5 sub-sectors
insured in June 2014
5 risks covered by
Agricultural Insurance
in June 2014
ADA aggregation status
DFDP & Contract Status
Developer/Enterprises
DF status & Insurer’s
Portfolio (MAMDA)
DF status & Insurer’s
Portfolio (MAMDA)
3.2 Value added of a
cubic metre of water
increased
Number of certified
products
Additional surface areas
converted into organic
products
Quality of organic
products exported (T)
Number of private advisors
accredited
11
0
8, 000
0
20 products carry a seal
of approval before June
2014
3 000 ha in June 2014
16 000 in June 2014
200 in June 2014
DDFP status
Status of DDFP/ PMO
Organic Product Programme
Contract
Status of DDFP/ PMO
Organic Product Programme
Contract
MAPM/DEFR
COMPONENT 4 : PROMOTION OF GENDER, WATER PROTECTION AND ENERGY CONSERVATION Risks :
Socio-cultural resistance
Mitigation Measures
:
Sensitization/training
Political support
4.1 Gender Equality
(GE) mainstreamed
into MAPM
Study and Action Plan for
mainstreaming gender into
the PMV
Availability of a
disaggregated (men,
women and youths)
monitoring –evaluation
system
Trained and settled young
graduates
NA
NA
0
Study and Action Plan
prepared in 2013
Disaggregated ME
system established in
2013
At least 100 trained and
50 settled in 2014
about 40% of them
girls
DEFR Study and Action
Plan
ADA and MAPM statistics
and surveys
ADA and DEFR Progress
Reports
4.2 Energy
conservation options in
agriculture identified
Regional Biomass Master
Plans prepared
Energy audits conducted
Energy Performance Plan
(EPP) implemented
0
0
0
4 Master Plans
prepared at end-2012
10 audits of agro-
industrial units and 5
audits of farms
conducted in 2012
At least 10 EPPs for
agro-industrial units
and 5 for AW in 2013
ADEREE Report
ADEREE Report
ADEREE Report
4.3 Water resources
protection strengthened
and effects of climate
change mitigated
Framework Law on the
National Environment and
DD Charter in force
PMV Strategic
Environmental and Social
Assessment finalized
A NAMA on agriculture
available
NA
NA
NA
Framework Law and
implementing
instruments adopted
before end-2013
An Environmental and
Social Management
Master Plan
implemented in 2013
A NAMA developed
and finalized in 2013
Reports of the Environment
Department
ADA/ESMMP
Department of
Environment/ NAMA
Reports
Financing : ADB Loan : UA 90 million (Equivalent to EUR 105 million)
viii
PAPMV IMPLEMENTATION SCHEDULE
Description of Activities 2012 2013 2014
T1 T2 T3 T4 T1 T2 T3 T4 T1 T2 T3 T4
1. Loan Review
1.1 Appraisal
1.2 Loan Negotiations
1.3 Loan Approval
1.4 Loan Signature
1.5 Loan Effectiveness
1.6 Authorization of 1st Disbursement
2. Programme Implementation
2.1 Implementation of First Tranche Measures T1 Reforms T1 Reform Impacts
2.2 Implementation of Second Tranche Measures T2 Reforms T2 Reform Impacts
3. Programme Supervision and Monitoring
3.1 Bank Supervision
3.2 Auditing
3.3 Mid-Term Review
4. Programme Completion
4.1 Preparation of Programme Completion Report by the Moroccan
Government
4.2 Preparation of Programme Completion Report by the Bank
REPORT AND RECOMMENDATION OF MANAGEMENT
TO THE BOARD OF DIRECTORS CONCERNING A PROPOSAL FOR A LOAN TO
THE KINGDOM OF MOROCCO TO FINANCE THE GREEN MOROCCO PLAN
SUPPORT PROGRAMME (PAPMV)
I THE PROPOSAL
1.1 Management hereby submits the following proposal concerning the grant of a EUR
105 million loan (equivalent to UA 90 million) to the Kingdom of Morocco to finance the
Green Morocco Plan Support Programme (PAPMV). It is a sector budget support to be
implemented over a 24-month period (July 2012- July 2014). The idea of the Green Morocco Plan
Support Programme (PAPMV) was initiated during the Bank’s CSP 2007-2011 completion report
preparation mission to Morocco in March 2011. During this mission, the Moroccan Government
(GM) and the Bank showed common interest in promoting green growth by providing support to
the Green Morocco Plan (PMV) considering its strategic importance for the country. Based on the
Bank’s comparative advantages, the need for continuity and consolidation of achievements, as
well as complementarity with other partners1, a decision was taken to refocus the programme on
agricultural water. In this regard, a preparation mission was fielded from 19 to 30 September
2011, followed by an appraisal mission from 13 to 25 February 2012. The programme design was
based on a participatory and integrated process2 which included the establishment of an
Interdepartmental Committee and a stimulating innovative ideological debate proposing a
combination of water conservation and energy conservation, as well as consideration of socio-
economic, environmental and institutional dimensions so as to enhance the impact of the PMV
and make it “doubly green”. It also took into account lessons learned and good practice principles
of completed and on-going budget support programmes (PASFI, PASEAU, PARCOUM, PARAP
I to IV, PADESFI I and II, PUEN, etc.), particularly concerning design, targeting of measures and
conditionalities.
1.2 The PAPMV seeks to support the implementation of the Green Morocco Plan - PMV
[2008-2020] by providing targeted support for the sustainable management, development and
conservation of agricultural water within a context of growing scarcity of this resource. Its
strategic objective is to contribute to strengthening the competitiveness of the agricultural sector
for inclusive economic growth. Its specific objective is to improve the business climate and ensure
sustainable agricultural water management. Following a “logical chain” of events, the PAPMV
will target four series of reforms for agricultural water : (i) Reforms aimed at modernizing
agricultural water infrastructure and strategic management; (ii) Reforms aimed at improving
agricultural water governance and sustainable management; (iii) Reforms aimed at improving
agricultural water productivity and development, as well as the business climate; and (iv) Reforms
aimed at promoting gender, water resources protection and energy conservation.
II COUNTRY AND PROGRAMME CONTEXT
2.1 Government’s Development Strategy and Medium-Term Reform Priorities
2.1.1 The Moroccan authorities have, for many years now, embarked on a far-reaching reform
programme aimed at laying the foundation for rapid and balanced growth that can absorb
economic and social deficits. The new Government formed after the legislative elections of
November 2011 has, following the “Arab Spring” events, laid emphasis on inclusive
development. The Government’s Agenda (2012-2016) presented to Parliament in January 2012
1 The Bank’s budget support targeted the PMV’s cross-cutting issue (agricultural water), while the World
Bank support targeted Pillars 1 and 2 and that of the EU and AFD Pillar 2 of the PMV. 2 As soon as the PAPMV was identified, an Interdepartmental Committee was set up to jointly conduct its
preparation and appraisal. This Committee will be consolidated to pursue the programme implementation and
monitoring.
2
focused on commitments structured around five major pillars: (i) strengthening of the unified
national identity; (ii) consolidation of the rule of law, advanced regionalization, and good
governance; (iii) establishment of a competitive and diversified economy; (iv) development and
implementation of social programmes; and (v) strengthening of Morocco’s position in the
international community.
2.1.2 It is within this context that Morocco has initiated far-reaching structural and sector
reforms, including in agriculture1. The Green Morocco Plan was prepared and validated in April
2008 by the Moroccan authorities to implement these reforms and promote investments so as to:
(i) give the agricultural sector a fresh impetus; (ii) address new challenges (food crisis, job
opportunities, fragility of resources, etc.) and develop potential as much as possible; and (iii)
integrate the production system and support the profound changes in the agro-industrial system.
2.2 Recent Socio-economic Developments, Prospects, Constraints and Challenges
2.2.1 Recent Economic Developments: Morocco has embarked on far-reaching structural
reforms to boost growth2 which stood at 4.8% in 2011. Per capita income almost doubled over the
past decade to USD 2 939 in 2010. Medium-term growth prospects are good, and are based on the
commitment of the authorities to consolidate the economy’s resilience by pursuing reforms and
implementing sector strategies to boost domestic demand. However, Morocco is confronted with
two major challenges, namely uncertainties associated with the present political context of North
Africa and the debt crisis in the Euro zone, Morocco’s main trading and financial partner. The
budget deficit (including grants) is expected to remain high in 2012, at 5% of GDP, before
declining to the target of 4% of GDP set by the Government. The main reason for this trend is the
increase in the wage bill that accounts for more than 11% of GDP; the increase is the
Government’s response to the 2011 labour demands3. Inflation has been contained, standing at
0.9% in 2010 and 2011, after the 3.7 % recorded in 2008 due to the rise in food prices. Morocco’s
external position is also in the red, with a current account deficit representing 6.5% of GDP and
declining official reserves representing 5.2 months of imports in 2011. Nevertheless, the quality of
debt management earned Morocco an improvement of its rating by Standard & Poor’s4,
maintained after the legislative elections in December 2011.
2.2.2 The effort to integrate the Moroccan economy into the global economy was pursued with
the signing of many free trade agreements (FTA) which resulted in the recent “advanced status”
granted by the EU. Concerning the business climate and competitiveness, recent assessments
show that the country is increasingly in line with international best practices. According to the
“Doing Business” 2012 Report, Morocco gained 20 places, climbing up from the 115th to the 94th
place out of 183 countries, and according to the Global Competitiveness Report 2011-2012,
Morocco gained two places, from 75th place to 73rd out of 142 countries, with a score of 4.16 on 7,
compared to 4.08 in 2010.
1 Other reforms concerned the environment, energy, the private sector, the financial sector, social sectors,
privatization of public enterprises, the new law on public procurement, the law on competition, the
liberalization of the financial and transport sectors, launching of judicial reform, administrative reform, etc. 2 The average annual growth rate reached 4.9% during the 2004-2011 period, that is double the average rate of
the preceding decade, despite an unfavourable environment (drought in 2007 and economic and financial
crisis in 2008). 3 In particular, purchasing power support notably by increasing subsidies on staple products; increasing
salaries and pensions; and passing a law aimed at facilitating the school-to-work transition of young
graduates. 4 The sovereign credit rating of long-term debt in foreign exchange dropped from BB+ to BBB- and that of
long-term debt in local currency rose from BBB to BBB+, with stable prospects.
3
2.2.3 Poverty Situation: Concerning the fight against poverty, Morocco recorded good
performance, with the reduction of the national poverty rate from 15.3% in 2000 to 9% in 2010.
However, the poverty rate remains high in rural areas (14.5%) compared to only 4.8% in urban
areas in 2010. Indeed, although the rural population represents only 46% of the total population,
the rural areas have two-thirds (2/3) of the poor. The income of 80% of the rural poor is derived
from agriculture. The national literacy rate is low (59.5% in 2008). It is very low in rural areas
(43.3%), among women (48.1%) and people aged over 50 years (28.2%). Women’s involvement
in economic activity is still limited, with a national activity rate of 27.9% against 76.9% for men.
The youth unemployment rate is high (31.6%). In 2010, the net primary enrolment ratio was
96.4%, while the girl/boy primary enrolment ratio stood at 97.9%. The secondary school
completion rate also improved, rising to 64.6% as against 48% in 2008/2009. Concerning health,
the infant and child mortality rate (30.5 deaths per 1000 live births in 2011) and the maternal
mortality rate (112 deaths per 100 000 live births in 2011) are still high, despite the progress made
as a result of the implementation of the basic health coverage reform programme for the most
disadvantaged people. The second phase (2011-2016) of the National Human Development
Initiative (INDH), which was launched in May 2005 and has recorded positive results, particularly
significant progress towards the achievement of MDGs, will pursue efforts to reduce social
disparities.
2.2.4 Prospects, Constraints and Challenges: The GM intends to pursue the reforms initiated in
recent years, in order to consolidate economic growth and implement the ambitious public
investment programmes that it formulated. It will also continue to implement the main sector
strategies launched to boost economic diversification and growth potential. In this connection, the
PMV is a key instrument of the GM’s strategy as agriculture is a sector with high productivity and
job creation potential. It contributes to the GM’s effort to address major challenges, namely: (i)
regional disparity, persistent vulnerability and high level of unemployment, particularly among
youths; (ii) fragility of resources (especially water). Morocco is confronted with sustainable
natural resources management problems related particularly to pressure on water resources,
overexploitation of groundwater and arable land, atmospheric pollution and overgrazing and
deforestation. The scarcity of water resources is a major constraint in view of the combined
effects of the country’s increasing needs due to population pressure and the requirements of
competing sectors (drinking water, agriculture, tourism, industry, etc.), as well as effects that
could be generated by climate change. Farming and management methods expose these resources
to increasing fragility; (iii) inadequate diversification of exports and their high concentration on
European markets; (iv) a business climate that is not so attractive; (v) the effects of climate
change. Over the past thirty years, Morocco has had to grapple with 20 dry years, with 3 episodes
of drought each of which lasted four consecutive years. This situation has weakened the country,
and put it in the group of water stress countries. Consequently, Morocco has to address the
challenges posed by the scarcity of water resources.
2.3 The Sector and Related National Development Programme
2.3.1 The agricultural sector’s importance is reflected in its remarkable contribution to the
country’s GDP formation (15 % to 20 %) and job creation (40 %), especially in rural areas where
agriculture remains the leading provider of jobs (80 %) and the main source of income (1.5
million farmers). Over the past ten years, the average annual agricultural GDP growth rate has
been +3.98 %. Food exports account for 19% of the country’s total exports. Irrigated areas
contribute significantly to agricultural value added.
2.3.2 Morocco’s climatic conditions have always made irrigation a technical and economic
requirement which, over the years, has acquired very important socio-economic dimensions.
Irrigation has stood out as the sure way of developing agriculture and, consequently, received
special attention from the Government. Irrigated agriculture contributes significantly to meeting
the increasing food needs of the population and generating local employment. Although irrigated
areas represent only 15.7% of the country’s crop area, they account for 45% of agricultural value
4
added (and even 75% in the event of a bad crop year) and 75% of total agricultural exports. They
also help to provide about half the employment in the agricultural sector. Consequently, irrigated
agriculture is a real catalyst of local development through increased incomes and improvement of
the living conditions of the rural population, construction of infrastructure and development of
services related to agriculture and agro-industry.
2.3.3 Irrigated areas cover a total surface area of 1.46 million hectares, 70% (1.02 million ha)
of which are developed with public funds (State) and 30% (0.44 million ha) with private funds
(farmers, private companies, etc.). In Morocco, there are three types of irrigation areas: (i) Large-
Scale Waterworks Area (GH): covers 880 000 hectares of perennial irrigable potential. At present,
the total GH surface area developed is 682 600 ha. It covers nine major irrigation areas whose
irrigable surface area ranges from 30 000 to 25 000 ha per area. Irrigation facilities are developed
and managed by the State through nine Regional Agricultural Development Authorities
(ORMVA)1. Flow irrigation2 is the dominant method of irrigation in these areas and represents
78% of the irrigated surface area, while spray irrigation covers 16% and localized irrigation only
6% of the irrigated surface area ; (ii) Small-and-Medium-Scale Waterworks Area (PMH):
currently covers a total surface area estimated at 340 000 hectares of perennial irrigation and
300 000 hectares of seasonal and flood irrigation (areas whose surface area varies from a few
dozen and a few thousand hectares) ; (iii) Private Irrigation (IP) : covers surface areas developed
for irrigation by the private sector (farmers, companies, etc.), and increasingly contributes to the
extension of irrigated areas. It covers nearly 441 400 hectares.
2.3.4 The development of irrigated agriculture in Morocco is confronted with a two-fold
challenge : (i) improving the performance of irrigated agriculture to ensure the conservation and
enhanced development of water and the sustainability of irrigation systems ; (ii) extending
irrigation, particularly to areas dominated by certain dams, as part of a countrywide harmonious
water policy and within a context of scarce water resources compounded by climate change and
competition with other sectors.
2.3.5 The Green Morocco Plan -PMV (2008-2020), approved by the Moroccan Government in
April 2008, is a comprehensive development strategy aimed at transforming the agricultural sector
into a stable source of growth and employment, improving competitiveness, and promoting more
diversified economic development. It is the Road Map (RM) for implementing a series of reforms
and structuring investments in the agricultural sector. The PMV comprises two pillars : (i) Pillar 1
concerns the development of modern, efficient and high value-added agriculture in line with
marketplace rules and based on private investments [financing of 700 to 900 projects/export-
oriented productivist model] ; (ii) Pillar 2 concerns support for smallholder agriculture of a social
nature in areas with fragile ecosystems (oasis, mountainous , etc. areas) by improving the incomes
of the most vulnerable farmers [300 to 400 social projects under a regional plan aimed at
converting vulnerable farmers to viable activities backed by training and supervision].
Concurrently with these two pillars, the PMV lays emphasis on crucial cross-cutting issues such
as agricultural water, the occupation, land tenure, etc. Concerning agricultural water, the PMV
adopts targeted reforms and proposes the implementation of two strategic programmes: (i) the
first, which is as urgent and known as the National Irrigation Water Conservation Programme
(PNEEI), seeks to convert conventional irrigation to localized irrigation, as well as improve the
irrigation water service and promote conservation techniques and farming systems that ensure
better use of water on an overall surface area of 555 000 hectares ; (ii) the second, known as the
Irrigation Extension Programme (PEI), seeks to bridge the gap created by surface areas dominated
by dams covering an overall surface area of 190 000 ha. Special attention is also paid to the
Small-Medium-Scale Waterworks Area (PMH).
1 Public Establishments: Moulouya, Loukkos, Gharb, Doukkala, Haouz, Tadla, Souss-Massa, Tafilalet and Ouarzazate.
2 Conventional irrigation method characterized by low network efficiency and enormous water losses.
5
2.3.6 The Green Moroccan Plan (PMV) is an ambitious strategy aimed at ensuring inclusive
and sustainable development. Its objective is to make the agricultural sector a real lever of socio-
economic development, particularly for job creation, poverty reduction and environmental
protection. The PMV advocates an innovative approach based mainly on: a systemic perspective
that integrates the production process and all the stakeholders (transition from production based
completely on farms to irrigated and high value-added agriculture that promotes key sub-sectors
and the agro-industrial value chain); (ii) good central and regional governance; (iii) promotion of
strategic alliances with the private sector; (iv) promotion of partnership with the agricultural
occupation. To give the agricultural sector fresh impetus for investment, the PMV proposes a
series of reforms and institutional instruments (overhauling of the sector framework,
reorganization of public services, reform of professional entities, reform of agricultural credit,
reform of agricultural water services, adoption of the programme contract approach, etc.).
Box 1: Brief Presentation of PMV Status and Expected Impacts
1.1 Since the PMV was launched, the Moroccan Government has initiated important institutional reforms and taken
appropriate measures to finance structuring programmes. Thus, the MAPM set up 16 Regional Directorates of Agriculture
(DRA) to decentralize services, restructured the Chambers of Agriculture (reduction of their number from 37 to 16) and
inter-trade organizations, established the Agency for Agricultural Development (ADA) to manage PMV implementation
and the National Food Safety Authority (ONSSA) to monitor sanitary standards, developed 16 Regional Agricultural Plans,
restructured MAPM services, signed the Medium-Term Expenditure Framework (MTEF) 2009-2015 in April 2009 with the
Ministry of the Economy and Finance (MEF) for financing requirements estimated at USD 17 billion, signed 14 Programme
Contracts with the Joint Strategic Agro-Food Sub-sector Organization, launched the aggregation model (conclusion of
trilateral contractual arrangements between aggregators (public and private economic operators), the aggregated (producers)
and the GM, launched the reform of agricultural credit and the incentive scheme (Agricultural Development Fund-FDA),
etc. The MAPM also steered the approval of the Agricultural Free Trade Agreement (AFTA) by the European Parliament,
thus helping to provide bright prospects.
1.2 The major expected impacts of the PMV by 2020 are :
(i) Target 1.4 million farmers; (ii) Agricultural value-added multiplied by 2.5; (iii) Creation of 1.5 million jobs: (iv) Increase
in exports from 1.35 million to 4.6 million tonnes (that is +254%); (v) 1500 projects implemented under 16 Regional
Agricultural Plans (PAR); and (vi) Overall investment of MDH 147 billion, including MDH 66.3 billion (about EUR 6.2
billion) of public funds.
2.4 Status of Bank Group Portfolio
The Bank’s active portfolio in Morocco, the
details of which are presented in Appendix
5, comprises 25 operations, with 15 loans
and 10 grants for net commitments of about
EUR 1.7 billion. The infrastructure sector
(transport, energy and mining, water and
sanitation, irrigation, etc.) continues to be
predominant in the portfolio (17 operations
and 86.5% of commitments), followed by
governance or multi-sector (4 operations
and 13.5% of commitments) and the social
sector (1 operation and 0.1% of
commitments) [see Fig. 1]. The two private
sector operations represent 11.4% of the
active portfolio and concern: (i) USD 250
million loan to Office Chérifien des
Phosphates (OCP) approved in June 2011;
and (ii) EUR 15 million equity participation,
approved in February 2010, in a regional
Fig.1 : Breakdown of Operations by Sector
investment fund devoted to the financing of infrastructure (Argan Fund for Infrastructure
Development). As regards portfolio performance, the March 2011 review confirmed improvement
in overall portfolio performance, with an average aggregate score of 2.7 over 3 as against 2.6 in
6
2009. On the whole, the performance of 91% of the operations is very satisfactory, while the
remaining 9% with an average performance are closely monitored by the Bank. This progress
reflects the efforts made by the Government and the Bank to reduce effectiveness timeframes,
accelerate the pace of implementation of operations and improve the disbursement rate. Hence,
the average effectiveness timeframe of operations (6 months) is shorter than that for the entire
Bank (10.6 months) and is comparable with that of the World Bank in Morocco (6.3 months). To
date, the portfolio does not comprise any project at risk, compared to an overall 17% of projects at
risk for the entire Bank Group and 5% for the World Bank’s portfolio in Morocco. This
performance stems from the improvement of quality at entry and the implementation of
operations, in particular the close and regular monitoring of the implementation of operations.
MAFO is playing an important role in strengthening dialogue with the Government and other
development partners.
III RATIONALE, MAIN ELEMENTS OF PROGRAMME DESIGN AND
SUSTAINABILITY
3.1 Linkages with the CSP, Assessment of Country Preparedness and Underlying
Analytical Elements
3.1.1 The proposed programme is fully consistent with the Bank’s intervention strategy
defined in the CSP (2012-2016), whose two pillars are: (i) Strengthening of Governance and
Social Inclusion; and; (ii) Support for the Development of “Green” Infrastructure. By focusing
on institutional reforms, improvement of the business climate, support for the development of
irrigation infrastructure, improvement of agricultural water governance1, management and
protection, support for the advanced regionalization and decentralization process, and better
articulation and synergy between various strategies2, PAPMV is in keeping with the above-
mentioned pillars (i) and (ii). It is also consistent with the Agricultural Sector Strategy (2010-
2014), particularly Pillars 1 and 2 relating to the promotion of agriculture infrastructure and
judicious natural resources3 management and the integrated water resources management policy
respectively.
3.1.2 The national strategies developed, the numerous studies conducted at the request of the
Government of Morocco and technical and financial partners (TFP) and discussions with
stakeholders and TFPs provided the analytical bases for the programme design. This programme
is consistent with the New Government’s strategy (2012-2015) approved by Parliament in January
2012. It is also fully consistent with the following sector strategies: (i) the Green Morocco Plan
(2008-2020); (ii) the National Water Strategy (2009-2030); (iii) the Environment and Sustainable
Development Charter (2010-2030); (iv) the New National Energy Strategy (2008-2020); and (v)
the Industrial Emergence Pact (2009-2015).
Assessment of Preconditions for Budget Support
3.1.3 Key Guiding Principles: In accordance with the new policy guidelines for programme
support operations (PSO), the design of this operation was guided by the following basic
principles :
Ownership by the country: The design was geared towards better ownership by
the stakeholders of the reforms and measures supported by the Bank. Special
importance was given to the adoption of a participatory approach that encourages,
1 Notably the promotion of PPP initiatives in irrigation, institutional leverage through ORMVA reforms, promotion of
Agricultural Water Users’ Associations (AUEA), etc. 2 Notably the Agriculture, Water, Environment and Energy strategies and the Industrial Emergence Pact.
3 The agricultural strategy also pays special attention to the following thrusts (i) Institution and capacity
building; (ii) Cross-cutting issues: gender equality, environrnent, climate change and knowledge
management.
7
upon programme identification, consultation and active involvement of
stakeholders (administration, professional entities, private sector, etc.). The
establishment, upon programme identification, of a Joint Interdepartmental
Steering Committee also reinforced the quest for the ownership. The Bank will
continue to support such ownership during programme implementation with other
development partners.
Focusing on results: This operation is based on the results-based logical
framework and a performance measurement framework (PMF) presented in Annex
6 of Volume 2. They will serve as basis for impact-oriented monitoring.
Alignment and predictability: The principle of alignment with the Country
Budget has been taken into account to enhance predictability and planning and
harmonize the processing of this operation with the country budget schedule.
Harmonization and coordination: In order to strengthen harmonization and
coordination, discussions were held particularly with the representatives of the
World Bank, EU and AFD, which are supporting the PMV. The Agriculture
Thematic Group will therefore be further supported to strengthen coordination and
complementarity.
Mutual accountability: The GM was sensitized on the promotion of participatory
mechanisms (consolidation of the Interdepartmental Steering Committee, the
Agricultural Thematic Group, etc. which are basic elements).
Flexibility: There was flexibility in programme design in order to address the
GM’s priorities and take its expectations into consideration. In view of the set
objectives, the principle of flexibility will be adopted during implementation of
this operation.
3.1.4 Conditions Precedent – Eligibility Criteria : In light of the new policy guidelines for
PSOs (section 6.2.1), Morocco fulfils the following criteria : (i) Government’s Commitment to
Poverty Reduction ; (ii) Economic Stability ; (iii) Satisfactory Fiduciary Risk Assessment ; (iv)
Political Stability; and (v) Harmonization (see details in Appendix 3).
3.1.5 Government’s Commitment to Poverty Reduction: Morocco has implemented social
policies, particularly under the National Human Development Initiative (INDH). These reforms
helped to improve the social indicators and roll back the poverty rate from 15.3% to 9% between
2000 and 2010. In 2012, the Government initiated the reform of regionalization, the second phase
of the INDH and the extension of health coverage to disadvantaged people across the country.
These reforms are expected to help improve the quality and efficiency of public services
responsible for poverty reduction and vulnerability.
3.1.6 Economic Stability: On the economic front, as indicated earlier on (section 2.2), the
evaluation conducted by the Bank shows that Morocco continues to record encouraging results
marked by the consolidation of the macro-economic framework and gradual diversification of the
production base of the national economy over the past ten years. The performance has been
achieved despite the difficult international economic situation, thanks to the implementation of
coherent macro-economic policies, sustained structural reforms and sector strategies centred on
structuring projects. In accordance with the new policy guidelines for PSOs, consultations with
the International Monetary Fund (IMF) have been initiated, although the IMF has no office in
Morocco. In addition, because Morocco has no programme with the IMF, the only consultations
between the Kingdom and the Fund take place within the framework of consultations under
Article IV. The conclusions of the last consultations (November 2011) indicate that Morocco’s
economic performance is very good.
8
3.1.7 Satisfactory Fiduciary Risk Assessment: As regards public finance management, the
risk assessment conducted by the Bank’s fiduciary services (detailed in Annex 3) is consistent
with the March 2011 Approach Paper on the “fiduciary risk management framework for ADB
reform support operations” and the March 2012 new policy on the Bank’s PSOs. It will help the
Bank to plan the PAPMV implementation. Indeed, (i) the country’s initial fiduciary risk is
moderate, in light of the most recent diagnoses of public finance management, procurement and
the level of corruption. This risk has been reduced to a low and appropriate residual level to
handle a budget support operation, considering the reforms initiated in recent years, as well as the
favourable prospects of pursuing them, backed particularly by the fifth Public Service and Public
Finance Reform Support Programme (ADB, WB and EU) being prepared; (ii) the sector fiduciary
risk assessed at the level of the Ministry of Agriculture is also favourable for the implementation
of a sector support, provided that account is taken of mitigation measures (action plan and loan
commitment) aimed at strengthening the coverage, quality and efficiency of the internal auditing
of MAPM-DA and entities under its supervisory authority, and that the arrangement concerning
specific performance audits in the implementation of PAPMV measures is effectively
implemented by the IGF; (iii) regarding inclusion of the support in the national budget, the
authorities have confirmed that the resources have been included in the budget with a
consolidation on the basis of the partnership programme with various technical and financial
partners and that this programme included PAPMV. The MTEF 2009-2015 of the Green Morocco
Plan and the investment budget of the Department of Agriculture of the MAPM provide for the
required sector allocations.
3.1.8 The regulatory framework for public procurement is governed by Decree No. 2.06.388
of 5 February 2007. The Bank evaluated the framework in 2011 and concluded that procurement
roles are balanced and, on the whole, acceptable, except for a few discrepancies, with a relative
fiduciary risk deemed moderate. Indeed, despite a regulatory framework largely consistent with
international standards and an effective and efficient control mechanism, the quality of the redress
and complaint mechanism, its independence, representativeness and risk of exposure to political
influence are areas of concern. This view is shared by many previous studies1. Morocco took note
of these concerns, and drafted a revised decree as well as specific orders to establish a complaints
management organ that is more in line with international standards. The new decree on public
procurement and the orders clarifying the institutional framework should be approved in 2012.
The entry into force of the new decree and other instruments will contribute to mitigating the
procurement risk deemed moderate. Apart from the regulatory framework, the entire Moroccan
system was assessed using the OECD/DAC methodology by the World Bank in 2008. Its
conclusions are virtually similar because they establish that 78% of the sub-indicators used by the
OECD/DAC methodology are achieved (even though most of the sub-indicators not achieved are
essential). This level of compliance of the current Moroccan procurement system is reassuring
because the resources of this sector budget support will be used in an effective, transparent and
efficient manner. Details of the characteristics of the Moroccan procurement system are presented
in Annex 4 (Volume 2).
3.1.9 Institutional Capacity: The GM demonstrated its capacity in previous operations to
steer reform programmes and investment projects, as well as mobilize development partners
around development operations. It thus showed proof of good programme ownership and
coordination capacity. As regards steering and management, the Moroccan administration has
skilled human capacities and a satisfactory level of supervision to ensure efficient management of
investment projects and reform programmes. The administrative machinery is well structured with
a relevant and clear task assignment system that enables officials to perform their duties.
1 Maghrebian Conference on Procurement; World Bank: CFAA 2003 and 2006; OECD/DAC Assessment
2008.
9
However, it is necessary to specify that voluntary retirements from the administration have
created a vacuum that is currently filled by using local technical assistance and/or new
recruitments. During the design of this programme, the involvement and participation of the
various entities concerned were appreciated and considered very active.
3.1.10 The Ministry of the Economy and Finance (MEF), Ministry of Agriculture and Sea
Fishery (MAPM), Ministry of Energy, Mines, Water Resources and Environment (MEMEE) with
its three Departments (Energy, Water Resources and Environment) and the Agency for
Renewable Energy Development and Energy Efficiency (ADEREE) are the government
departments involved in PAPMV management. These departments have high-level technical skills
and have shown proof of their commitment to satisfactory conduct of the reforms initiated under
the PMV.
3.1.11 Political Stability: At the political level, Morocco enjoys good stability in spite of
security problems stemming from terrorist threats (last attacks in Marrakech in May 2011) and the
socio-political uprising which affected the entire sub-region. Thus, the political achievements and
the responsiveness of Moroccan authorities allowed the country to reduce the scale of the
uprisings. The approval, by referendum, of the new constitution in July 2011 led to the
organization of legislative elections on 25 November 2011, which confirmed the liberalization
and democratization of political life.
3.1.12 Harmonization: In accordance with the principles of the Paris Declaration, donors
consult with each other regularly in Morocco in thematic meetings and sector working groups1.
Such consultations help to ensure synergy and complementarity between various operations. The
Bank, through the Country Office, plays an active role in consultation, particularly in the
agriculture, water and sanitation sectors. Coordination between the Bank and other donors also
takes the form of project co-financing, especially in rural road infrastructure, renewable energy,
governance, education and health sectors.
3.2 Collaboration and Cooperation with Other Donors
3.2.1 Aid is coordinated through periodic meetings between technical and financial partners
(TFPs) present in Morocco and representatives of the Government in the form of thematic
meetings and sector working groups (cf. 3.1.12). In 2010, a thematic group was instituted in the
agricultural sector bringing together the key TFPs involved in providing support to the Green
Morocco Plan (ADB, IBRD, EU, KfW, AFD, etc.) and steered by the Directorate of Strategy and
Statistics (DSS). The objective of this Agriculture Thematic Group (GTA) is to coordinate efforts
to address the requirements and needs of the Green Morocco Plan. The Bank is playing a vital role
through MAFO. The GTA meets twice a year for the TFPs to exchange views on strategic and
operational issues relating to their PMV support programmes. PAPMV intends to enhance
consultation between the partners in the agricultural sector and the Government by strengthening
the GTA/PMV.
3.2.2 The Bank’s PMV Support Programme was designed in consultation with other PMV
partners in Morocco during various preparation and appraisal missions, which facilitated the
sharing of experiences and ensured synergy and harmonization of operations. The World Bank
and the European Union are providing a budget support of USD 300 million and EUR 70 million
respectively. The AFD has just approved a EUR 50 million budget support. The table in Appendix
5 summarizes donors’ support for the PMV. To strengthen aid coordination between the TFPs, the
Government has established a Geographic Information System (GIS) to ensure real time
monitoring of various operations by geographic area, sector and amount. It is managed by a
Steering Committee composed of MEF and TFP focal points. The latter have direct access to the
GIS database to check and validate information on their operations.
1 In the areas of water and sanitation, energy, agriculture, environment, education, health and migration.
10
3.2.3 Morocco subscribed to the Paris Declaration on Aid Efficiency and the Accra
Declaration. Lessons learned from monitoring indicators relating to the principles of this
declaration1 show that aid granted to Morocco is relatively well aligned with country priorities.
Discussions on the use of country procurement procedures are ongoing, particularly with the Bank
and World Bank. Regarding the harmonization of procedures, projects funded by the Bank and
other key TFPs in Morocco are essentially implemented by Ministries and public establishments,
thus helping to ensure institutional sustainability and limit the establishment of parallel entities.
3.3 Results of Similar Completed or On-going Operations and Lessons Learned
3.3.1 To date, the Bank has funded fourteen (14) budget support programmes and a balance of
payments support in Morocco for a total amount of UA 1 421 million; the operations are as
follows: the Structural Adjustment Programme (1989-1990) ; Consolidation of the Structural
Adjustment Programme (1993-1994) ; the Economic and Social Reform Programme (PRES) ;
PARAP I, II III and IV from 2002 to 2011 ; PARCOUM I and II (2002-2006) ; SAP Water (2004-
2008) ; PUEN (2009-2011) ; PADESFI I and II, and Balance of Payments Support. The
completion reports of most of these programmes underscored the country’s good performance in
programme implementation and coordination.
3.3.2 At present, the Bank’s agricultural portfolio in Morocco comprises four ongoing
operations of a total loan and grant amount of UA 48.86 million (equivalent to EUR 55.31
million); the operations are as follows: (i) the National Irrigation Water Conservation Programme
Support Project (PAPNEEI) with EUR 53.59 million loan; (ii) three technical support operations
of a total grant amount of EUR 1.72 million (Technical Support for the Development of Southern
Oases, Technical Support for Irrigation Infrastructure Development, and Technical Support for
the Promotion of Young Agricultural Entrepreneurs). Many lessons are learned concerning
particularly assessment of quality at entry for operations, adoption of a concerted design and
implementation approach that ensures the active involvement of stakeholders, good scheduling
and management of procurement and disbursements, and quality of supervision. Lessons learned
by the Bank in the implementation of reform support operations can be summarized in terms of
the need to:
(a) Limit the triggers and avoid measures that are difficult to implement during the
programme implementation period and that can “block’’ or delay loan
disbursement;
(b) Formulate the reform programme on a selective and concerted basis with the
stakeholders and technical and financial partners (TFPs) to ensure ownership of
reforms by the Government, and develop the bases for performance-based
monitoring and evaluation to assess the progress of reforms.
3.3.3 The PAPMV is a continuation of the Water Sector Adjustment Programme (PASEAU)
completed in 2008, and which had started reforms in the agricultural water sector (particularly the
application of cost accounting within ORMVAs, increasing the recovery rate of levies, catch-up
irrigation water tariff increase, implementation of the integrated and transparent billing model,
preparation of a study on the externalization of agricultural water service management in
ORMVAs). The completion reports of these programmes concluded that the country’s reform
implementation performance was good and that the authorities’ ownership of the agreed measures
was strong. However, these operations also revealed that: (i) there are difficulties associated with
the multiplicity of conditionalities; (ii) the Bank and the Government should select feasible
measures and have the same understanding of each measure; and (iii) efforts should be made to
monitor project and programme performance, as well as the implementation of measures.
1 First survey on the monitoring of indicators of the Paris Declaration prepared in 2008.
11
3.3.4 The PAPMV design took into consideration the key lessons learned from previous
operations, in particular targeting and selectivity of adopted reforms and measures, as well as their
ownership by stakeholders. Furthermore, in this spirit of ownership, the PAPMV was designed
using a participatory approach based on consultation with stakeholders (workshops, discussions,
etc.) and the institution, upon PAPMV identification, of an Interdepartmental Committee that
steered the design of the programme in conjunction with the Bank (Committee supporting the
MEF and bringing together the representatives of various departments involved in the programme,
particularly Agriculture, Water, Environment and Energy).
3.3.5 The PAPMV design is consistent with the review conducted by OPEV on the application
of the Bank’s integrated water resources management (IWRM) policy. The review, prepared in
May 2012, concluded that Morocco is a good example in IWRM design and implementation. In
accordance with the conclusions and recommendations of the review (cf. Para. 5.1), the PAPMV
adopted an inter-sector approach based on institutional regulation, enhancement of strategic
support and capacity building. A consultation was also held during the design phase with the
various departments (ORQR, OWAS, ONEC, OSGE, OPSM, AWF, etc.) and a Task Force will
be set up to support PAPMV implementation.
3.4 Linkages with Other Bank Operations
3.4.1 Linkages between the PAPMV and other operations financed by the Bank are
summarized in the table below:
Table 1
Linkages between the PAPMV and Other Bank Operations
Other Bank
Operations
Status Objectives and Content PAPMV Components Linkages of Other Operations
with the PAPMV
Water Sector Support Programme
[PASEAU]
Complete
d in 2008
Objectives : Sustainable water management
Content : Six thrusts: Integrated Water Resources Management ; Water Rates
Regulation ; Reallocation of Investment
Budgets ; Reform of Agricultural Water Management ; Public-Private
Partnerships ; and Control of Impacts of
Effluents on the Environment
Component II :
Support for Improvement of
Governance and
Sustainable Agricultural Water
Management
Reform of Agricultural Water Management
National Irrigation Water Conservation
Programme Support
Project-Phase 1 [PAPNEEI-1]
On-going
Objectives: Sustainable water resources management and improvement of the
productivity of irrigated areas.
Content : Building of localized irrigation
infrastructure on about 20,000 ha and
implementation of water development actions
Component I : Modernization of
Irrigation Infrastructure
Component III :
Irrigation Water
Development Support
- Improvement of Agricultural Water Management and Promotion
of Water Conservation Measures ;
- Support for Water Development and Provision of Irrigation
Technical and Agricultural
Advisory Services; - Support for the Marketing of
Produce and Promotion of the
Aggregation Process (producers and agro-industrialists contract)
Irrigation
Infrastructure Technical Support-
PRI Grant
On-
going
Objectives : Development of water
resources by promoting irrigation infrastructure within a context of scarcity
and climate change
Content: Design and preparation of
strategic and operational tools for
monitoring and consistency of water sector policies and the PMV.
Component I,
Development of Strategic Tools for the
Irrigation Sector
Component II : Development of
Operational Water
Management and Capacity Building tools
- Preparation and implementation of
a road map for Irrigation Water Conservation; a national irrigation
map; irrigation infrastructure
investment programme, and a MAPM and AUEA senior staff
capacity building programme.
3.4.2 It should be noted that the Bank’s operations in Morocco pay special attention to the
cross-cutting issue of agricultural water under the PMV and to the strategic guidelines of the new
water strategy. The PAPMV has linkages with the following operations: the PAPNEEI which
supports the irrigation sector, technical support for irrigation infrastructure, technical support for
water table recharge, as well as support for JEA promotion and the future operation to provide
support to the National Irrigation Water Conservation Programme.
12
3.5 Bank’s Comparative Advantages
3.5.1 The Bank has sound experience in budget support in various sectors in Morocco. It is
one of the country’s leading donors in terms of volume of financing. It has initiated more than a
dozen (general and sector) budget support programmes, and has the required experience. As such,
it can initiate a more constructive dialogue on macro-economic and sector issues. In addition, by
placing more emphasis on a “results-based integrated and participatory approach”, the Bank is
offering additional possibilities of support and synergy (water, energy, environment, adaptation to
climate change, support for vulnerable groups [youths and women], etc.).
3.5.2 The experience gained by the Bank in the areas of irrigation (PAPNEEI), energy and
water enables it to envisage inter-sector operations that promote the coherence and efficiency of
sector operations. The programme directly puts into synergy initiatives (PRI grant) for the
promotion of Young Agricultural Entrepreneurs (JEA), the modernization of irrigation
infrastructure (PRI grant), and provision of technical assistance for artificial water table recharge
in Haouz (AWF grant). This programme offers opportunities to put into synergy the Bank’s
expertise in the areas of water, energy, climate change, environmental and social assessment,
private sectors and gender. Such expertise can support the reforms identified in the PMV, and
give the Bank a comparative advantage. The proposed reforms will help to support the
investments of operations conducted by the Bank, and consolidate their impacts in terms of
agricultural water management, development and protection.
3.6 Application of Good Practices Principles as regards Conditionalities
3.6.1 The Bank and Morocco have a lot of experience in the design and implementation of
reform programmes. The experience gained in Morocco, through more than a dozen budget
support operations, highlights particularly two major lessons : (i) slow process of approval of
legal and regulatory instruments, especially legislative enactments ; (ii) multiplicity of conditions
is an impediment to the implementation of budget support programmes. Consequently, the design
of the programme took into account the following good practices: (i) adoption of a realistic
schedule for the approval of legislative enactments and the need to avoid making such approval
one of the disbursement conditions; (ii) adoption of good practices in conditionalities/targeting of
conditions, political commitment to conduct reforms within a participatory framework, and
ownership of the conditions by the Customer.
3.6.2 Furthermore, the analysis of documents and discussions were shared between the various
TFPs operating in the sector (mainly the World Bank, EU, AFD, KFW and IFC), which pledged
their support for the programme. The discussions provided better visibility for coherence,
targeting, synergy and complementarity of measures proposed by the PAMPV. Indeed, a complete
conceptual framework, in this case a comprehensive matrix including potential measures, was
designed as a benchmark for comprehensive measures, and used as basis for consultation,
integration, harmonization and complementarity of interdepartmental operations and with
development partners, particularly the WB, EU and AFD. These consultations are in line with the
principles of the Paris and Accra Declarations and the enhancement of mechanisms aimed at
ensuring better aid coordination.
IV PROPOSED PROGRAMME
4.1 Programme Objectives
This operation intends to support the implementation of the Green Morocco Plan – PMV [2008-
2020] by providing targeted support for the sustainable management, development and
conservation of agricultural water within a context of growing scarcity of this resource. Its goal is
to help strengthen the competitiveness of the agricultural sector for inclusive economic growth,
and its specific objective is to improve the business climate and ensure sustainable management of
agricultural water.
13
4.2 Programme Components and Expected Outcomes
4.2.1 The PAPMV is structured around four closely related components summarized as
follows:
Component 1: Support for the Modernization of Irrigation Infrastructure
4.2.2 Issues and Challenges: Morocco has embarked on extensive modernization of irrigation
infrastructure through three major structuring programmes. The availability of strategic steering
instruments, visibility on the scope of investments, and an information and monitoring-evaluation
system are useful for improved planning and implementation.
4.2.3 Objectives and Proposed Reforms: This component seeks to develop and modernize
agricultural water core infrastructure, particularly upstream, so as to help improve management and
utilization of these mobilized water resources downstream. The programme will support three
strategic programmes for the country: (i) the National Irrigation Water Conservation Programme
(PNEEI), which will cover a surface area of 555 000 ha; (ii) the Irrigation Extension Programme
(PEI) [former Catch-up Programme-PRD] (180 000 ha); (iii) the Small- and Medium-Scale
Waterworks Development-PMH (340 000 ha). This component focuses on two important phases in
the development of irrigation infrastructure: (i) preparation of programme (PNEEI and
PEI) planning and monitoring tools; and (ii) conduct of studies on irrigation facilities in Small and
Medium-Scale Waterworks (PMH), and Large-Scale Waterworks (GH) areas and studies on
conversion to localized irrigation (PNEEI). The proposed reforms are indicated in the matrix in
Appendix 2; they focus on the following actions : (i) improve visibility in programming and
planning the building of infrastructure on new irrigated and converted areas; (ii) prepare and
finalize feasibility studies on infrastructure for the extension of irrigation over an area of 156 750
ha for GH and PMH conversion of 40 000 ha to localized irrigation; (iii) develop planning tools
and instruments (road map, national irrigation map, etc.) and a PNEEI and PEI monitoring-
evaluation system to monitor their performance; and (iv) develop a mechanism for consultation
between stakeholders in programming and building irrigation facilities (details in Annex 1, Volume
2).
4.2.4 Major Expected Outcomes : The expected outcomes are summarized as follows : (i)
preparation of a Road Map for water conservation ; (ii) preparation of a national irrigation map [a
measure deemed vital for enhancing visibility and decision making : adopted as a condition for
disbursement of the second tranche of the loan], (iii) establishment of a PAPNEEI and PEI
monitoring-evaluation system ; (iv) conduct of studies on the conversion of about 40 000 ha of
irrigated areas and feasibility of infrastructure for the extension of irrigation over an area of
156 750 ha ; (v) formulation of water conservation and irrigation extension investment
programmes; and (vi) establishment of a consultation committee for the integrated planning of
irrigation areas and associated dams.
4.2.5 Key Performance Indicators: The key monitoring indicators are: (i) number of hectares
studied for PMH; (ii) number of hectares studied for GH; (iii) number of hectares studied for
irrigation conversion; (iv) a national irrigation map available; (v) an Irrigation Investment
Programme available; and (vi) an operational (PNEEI and PEI) monitoring-evaluation system.
The impact monitoring indicators are: (i) additional surface area developed annually for localized
irrigation; (ii) additional surface area developed annually for extension of irrigation; and (iii)
additional volume of water saved (as a result of PNEEI and PEI).
Component II: Improvement of Governance and Sustainable Management of Agricultural
Water
4.2.6 Issues and Challenges: Morocco faces a situation of strong pressure on its water
resources (water stress country), particularly agricultural water which consumes between 80% to
85% of mobilized resources, as well as keen competition from other sectors (drinking water,
tourism and industry). Irrigated agriculture is plagued by constraints related to the scarcity of
14
water resources exacerbated by the impacts of climate change. The challenges include
improvement of the irrigation water service, management of demand for water, integrated water resources management, and building of the institutional capacity of AUEAs.
4.2.7 Objectives and Proposed Reforms: The objective of this component is to promote
measures that will strengthen governance and judicious management of agricultural water, as well
as synergetic linkages between the PMV and the water strategy for more sustainable irrigated
agriculture. To that end, the Programme provides for concrete measures through two important
levers: (i) promotion of Water Demand Management (WDM); and (ii) Promotion of Integrated
Water Resources Management (IWRM). The potential measures for this component concern
particularly : (i) institutional reform of water service for large-scale waterworks by implementing
a PPP in a new irrigated area; (ii) reflection on ORMVA institutional reform prospects as well as
the role of Agricultural Water Users’ Associations (AUEAs) ; (iii) development of modern tools
for irrigation management and good practices; (iv) development of groundwater management and
conservation tools; (v) conduct of studies on the re-use of treated wastewater in irrigation and artificial recharge of water tables.
4.2.8 Major Expected Outcomes: The major expected outcomes of this component could be
summarized as follows: (i) conduct of a study on the impact of reforms on the irrigation sector1 as
well as its action plan to mitigate the impact of reforms; (ii) launching of the study on the
restructuring of a PPP in Dar Khroufa sector (21 000 ha) in Loukkos ORMVA ,as well as its
feasibility study; (iii) initiation of reflection on ORMVA institutional reform prospects and
preparation of a Road Map [as continuation of SAP Water and deemed vital for the
reorganization of ORMVs in light of the changes brought about by the PMV (DRA, ONCA, ONSA,
PPP, enactments, etc.) and advanced regionalization: adopted as a condition for disbursement of
the second tranche of the loan] ; (iv) initiation of reflection on the role of AUEAs in GH and the
implementation of a programme to build their capacity; (v) development of modern tools for
managing irrigated areas; (vi) conduct of a study on two water table contracts, signature of two
water table contracts (Bhira and Haouz) and establishment of a system for monitoring
groundwater tapping; and (vii) identification of new water resources (re-use of treated wastewater
in irrigation and artificial water table recharge).
4.2.9 Key Performance Indicators: The key monitoring indicators of this component are : (i)
the study on the political economy of irrigation reforms is available and the mitigation plan is
implemented ; (ii) the Dar Khroufa PPP study contract is signed and the feasibility study prepared
and available; (iii) a road map for reform of ORMVAs available; (iv) the AUEA capacity building
programme is formulated and launched; (v) the guide on localized irrigation good practices is
prepared and available; (vi) the study on two water table contracts is conducted and available;
(vii) two water table contracts are signed; (viii) the road map for monitoring groundwater tapping
and a system for monitoring and controlling groundwater are prepared and available; (ix) the
Treated Wastewater Re-use Master Plan (REUT) is prepared, and the REUT and good practices
promotion tools are developed; and (x) the road map for artificial water table recharge is prepared
and available. The monitoring indicators for the impact of the measures mentioned above are: (i)
the structuring and feasibility of the Dar Khroufa PPP studied; (ii) ORMVA reforms are
underway; (iii) the number of AUEAs formed; (iv) the irrigation good practices guide
disseminated; (v) groundwater management arrangements included in the Green Morocco Plan;
(vi) the surface area developed under the REUT; (vii) REUT potential identified; and (viii) the
number of water table recharge projects operational.
1 The study is entitled « Study on the analysis of the political economy of irrigation sector reform ».
15
Component III: Development of Agricultural Water and Promotion of the Business Climate
4.2.10 Issues and Challenges: Agricultural water development is one of the major issues of the
PMV, which was designed with special focus on this dimension in order to address challenges
posed by profound transformation of Moroccan agriculture. The challenges include: (i) low
productivity resulting mainly from the predominance of very low value added sub-sectors; (ii)
limited integration of the production process; (iii) production downstream and agricultural
produce processing inadequately developed (low agro-industry/agriculture value added ratio); (iv)
suboptimal participation in global trade in agricultural products (low average growth rate of food
exports). These challenges highlight the role of the private sector and importance of Public-
Private Partnership initiatives operating in a “win-win situation”. This helps to improve
competitiveness which entails promoting the investment environment and business climate.
4.2.11 Objectives and Proposed Reforms: The objective of this component is to link the
development of agricultural water to promotion of the business climate so as to develop synergy
that would generate high value-added agriculture. It covers downstream activities and is geared
towards the creation of value for agricultural water. It seeks to improve water productivity and
increase the value per cubic metre of water by developing downstream agricultural activities. The
programme provides for a series of reforms around the following thrusts : (i) Development of the
Agricultural Council (CA) ; (ii) Development of Agricultural Training and Capacity Building ;
(iii) Development of Agricultural Research ; (iv) Development of Strategic Sub-sectors, Local
Products, Agro-business and Agropolis; (v) Promotion of the Aggregation Mechanism and PPP
Initiatives; (vi) Consolidation of the FDA Incentive Mechanism; and (vii) Promotion of
Agricultural Insurance to Support Value Added Chains.
4.2.12 Major Expected Outcomes : The expected outcomes of this component could be
summarized as follows : (i) introduction into the approval circuit and preparation of the
implementing instruments of the law on agricultural aggregation and the law on inter-trade
organizations [These two laws, the drafts of which have already been prepared, are deemed
crucial for the promotion of aggregation models and inter-trade organizations: initially adopted
as conditions for disbursement of the first tranche of the loan. The Bank was informed and it duly
noted that the two bills have already been transmitted to the SGG. The Bank will monitor the
enactment of these laws under dialogue with the country]; (ii) launching of a study on the
establishment of regional competitiveness poles of the agro-food sub-sector around Meknès and
Berkane agropolis [the marketing of agropolis is considered important and evidence of
implementing an action plan is adopted as a condition for disbursement of the second tranche of
the loan]; (iii) consolidation of the financial resources of the Agricultural Development Fund
(FDA) ; (iv) finalization of the study on agricultural insurance, improvement of the agricultural
insurance penetration rate, and launching of new agricultural insurance products covering many
sub-sectors and risks ; (v) introduction into the approval circuit and finalization of the
implementing instruments of the law on the biological production of agricultural and aquatic
products; (vi) conduct of the study on the National Agricultural Training and Research Strategy
(SNFRA); (vii) introduction into the approval circuit and preparation of the implementing
instruments of the law on the National Agricultural Council Board and the law on the organization
of the profession of Private Agricultural Extension Officer (CP) [These two laws, the drafts of
which have already been prepared, are considered vital for the promotion of the Agricultural
Council and private initiatives: initially adopted as conditions for disbursement of the first
tranche of the loan. The Bank was informed and it duly noted that both bills have already been
transmitted to the SGG. The Bank will monitor the enactment of these laws under dialogue with
the country].
4.2.13 Key Performance Indicators : The key monitoring indicators of this component are : (i)
evidence of the transmission of the bills to the General Secretariat of the Government and
16
preparation of implementing instruments of the laws on aggregation, inter-trade organizations,
biological production of agricultural and aquatic products, the National Agricultural Council and
organization of the profession of Private Agricultural Extension Officer; (ii) the action plan for
promoting agropolis is prepared and implemented; (iii) the study on the establishment of regional
competitiveness poles of the agro-food sub-sector around Meknès and Berkane agropolis is
launched; (iv) the amount allocated for FDA subsidies; (v) the agricultural insurance study and
Road Map are available; (vi) the agricultural insurance penetration rate has improved; (vii) the
specifications of products that can bear a distinctive origin and quality mark are prepared and
available; (viii) the study on the National Agricultural Training and Research Strategy (SNFRA)
is conducted and available. The key impact monitoring indicators are: (i) the number of
aggregation contracts signed; (ii) the marketing rate of agropolis; (iii) the amount of FDA
subsidies has increased; (iv) the number of local products recommended; (v) the number of risks
covered by agricultural insurance; (vi) the number of local products marketed by GMS; (vii) the
number of specifications of products that can bear a distinctive origin and quality mark deposited;
(viii) the surface area farmed by producers converted to Biological Production and quantities of
organic products exported; (ix) the ONCA established; and (x) the number of private agricultural
extension officers commissioned.
Component IV: Promotion of Gender, Energy Conservation and Protection of Agricultural
Water
4.2.14 Issues and Challenges : The main issues and challenges concern: (i) low visibility
within the PMV for gender mainstreaming ; (ii) limited attempts in the agricultural sector to tap
potential energy sources (biomass, renewable energy and energy efficiency); (iii) still limited
efforts by the PMV to adapt to climate change (CC) and mitigate greenhouse gas emissions by
taking advantage of negotiations on post-Kyoto mechanisms, particularly the Green Fund; and
(iv) the need to strengthen resource tracking mechanisms.
4.2.15 Objectives and Proposed Reforms: This component focuses on four main thrusts:
gender, energy conservation and efficiency, legal and organizational framework for environmental
protection, and climate change which will support PMV social and environmental dimensions. It
seeks to implement reform measures to : (i) improve gender mainstreaming within the PMV and
MAPM, and especially youth integration; (ii) promote energy conservation in the agricultural
sector (industry and farming); (iii) develop legal instruments for environmental protection and
monitoring mechanisms; and (iv) boost PMV efforts to adapt to and mitigate climate change in
the agricultural sector.
4.2.16 Major Expected Outcomes : They could be summarized as follows: (i) launching of a
diagnostic study and an action plan to consolidate gender mainstreaming into the PMV ; (ii)
initiation of the study on support for young agricultural entrepreneurs ; (iii) training and support
for the settlement of young graduates; (iv) finalization of Regional Biomass Master Plans in four
regions and identification of investment project portfolios in two regions ; (v) conduct of energy
audits of agro-industrial units (UAIs) and farms (EA), and initiation of implementation of the
Energy Performance Plan (PPE) of UAIs and EAs; (vi) introduction, into the approval circuit, of
the draft Framework Law on the National Environment and Sustainable Development Charter;
(vii) support for the establishment of Regional Observatories for the Environment (ORE; and
(viii) development of NAMA for the agricultural sector.
4.2.17 Key Performance Indicators : The key output monitoring indicators are: (i) the GE
diagnostic study and action plan prepared; (ii) the JEA diagnostic study conducted; (iii) the youth
settlement projects prepared; (iv) the Regional Biomass Master Plans of four regions prepared; (v)
two biomass projects and 10 feasibility studies available; (vi) at least 10 UAI energy audits and 5
EA energy audits available; (vii) at least 10 PPEs in UAIs and at least 5 PPEs in EAs available;
(viii) a guide on EE good practices in EAs developed and disseminated; (ix) at least 6 OREs
operational in 2013 and 6 in 2014; and (x) the NAMA Agricultural Document prepared and
17
available. The monitoring indicators for the impact of the measures mentioned above are: (i)
measures for gender mainstreaming into the PMV initiated; (ii) opportunities of settling young
agricultural entrepreneurs studied and PMV measures targeting youths are more visible; (iii) the
number of biomass projects funded under the PMV; (iv) EE measures integrated into PMV
projects; (v) EE measures internalized in UAIs and farms; (vi) Framework Law on the National
Environment and Sustainable Development Charter approved and environmental protection tools
developed; and (vii) steps to develop the agricultural sector NAMA taken.
4.3 Financing Requirements and Arrangements
4.3.1 The financing requirements of the Treasury of the Kingdom of Morocco are presented in
Table 2 below. According to estimates, these needs amount to about MDH 156 billion, equivalent
to EUR 14 billion. They will be covered by the country’s own resources and external resources.
External resource requirements amount to about MDH 16.8 billion, or nearly EUR 1.5 billion.
These external resource requirements will be covered by external drawings on investment project
and reform programme loans. The current Bank loan, amounting to EUR 105 million, represents
7% of the external financing requirement for 2012-2014.
Table 2
Budget Balance and Financing Requirements for 2012-2014 (in MDH billion)
Description 2012 2013 2014 Total
(2012-2014) Total Revenue (excluding Hassan II Funds)
Of which:
Tax revenue
Non-tax revenue (excluding privatization and Hassan II Funds)
Expenditure and Net Lending (excluding Hassan II Funds)
comprising :
Current expenditure
Capital expenditure
Special Treasury accounts balance (surplus)
Overall balance (commitment basis, excluding Hassan II Funds)
Change in arrears
Grants and other revenue
Financing Gap
Domestic financing
External financing
190.3
170.7
19.6
240.1
194.1
46.0
3.0
-46.8
-17.0
3.2
60.6
48.5
12.1
199.5
183.8
15.7
251.3
201.0
50.3
2.0
-49.8
0.0
1.2
48.6
46.2
2.4
215.1
198.5
16.6
265.1
176.7
53.3
2.0
-48.0
0.0
1.2
46.8
44.5
2.3
604.9
553.1
51.8
756.5
483.4
149.6
7.0
-144.6
-17.0
5,6
156.0
139.2
16.8
Source: Ministry of the Economy and Finance - MEF
4.3.2 Major contributions by donors to the Green Morocco Plan during the 2011-2015 are
presented, on a tentative basis, in Table 3 below.
Table 3
Parallel External Financing of the PMV
Source of Financing Amount Remarks
African Development Bank/Loan EUR 105 Million Ongoing
World Bank (IBRD) USD 300 Million Approved
European Union (EU) EUR 70 Million Approved French Development Agency (AFD) EUR 50 Million Approved Global Environment Facility (GEF) USD 4.35 Million Approved African Development Bank/ MIC Grant EUR 1.8 Million Approved Other partners (Belgian Cooperation, etc.) EUR 8.0 Million Approved
4.4 Programme Beneficiaries
The direct beneficiaries of this programme are socio-professional organizations,
farmers/irrigators, youths and women, private enterprises, agro-industrial units and administrative
entities concerned. The programme will also benefit MAPM and MEMEE central and
decentralized entities (Departments of Water Resources, Environment and Energy). These entities
will be strengthened in terms of regulations and managerial capacity. It will help to strengthen the
decentralization process, as well as knowledge building, skills transfer and the clear definition of
18
duties and responsibilities by underscoring a performance-and results-based management culture
and promotion of a contractual approach based on mutual obligations.
4.5 Impacts on Gender
4.5.1 Uneducated women account for 79.2% of Morocco’s rural labour force, a rate which can
exceed 90% in mountainous areas. Rural women are vulnerable, and their role in society does not
allow for Equity and Equality in opportunities for access to resources, services, property, income
and decision making. Very few women are literate (28.2%), and are hardly involved in the
management of AUEAs and in the private sector. The various mechanisms provided under the
PMV are intended for men, women and youths without distinction, depending on their dynamism
and skills which enable them to qualify as project beneficiaries (Pillars 1 and 2). This presupposes
equal opportunities at this level. Furthermore, the FDA and the Agricultural Council’s new
strategy do not take gender disparities into account. The challenge is to support MAPM to adopt a
strategic vision that will help to better tap the huge human resource potential that women and
youths constitute. This is what PAPMV intends to achieve by formulating and implementing a
gender action plan aimed at improving access by women and youths to the programme’s
resources, and an ADA gender-and age-disaggregated monitoring system to support the gender
dimension.
4.5.2 The programme will promote equal opportunities for women and men, and strengthen
the empowerment of women (inclusion of these aspects in the private agricultural council;
settlement of Young Agricultural Entrepreneurs-JEA, capacity building, support for the
aggregation process and marketing activities, etc.).
4.6 Environmental Impact
4.6.1 Environmental Safeguards: The Green Morocco Plan Support Programme (PAPMV) has
been classified under Environmental Category 2, and was the subject of a strategic environmental
and social assessment (SESA) which was presented by the Government on 20 February 2012
during a validation workshop. The PAPMV could be a source of negative environmental and
social challenges stemming from the risk of intensification related to crop production,
development of new surface areas, development of agropolis and access by vulnerable groups to
programme resources. These include pressure on water resources, deterioration of water and soil
quality, potential conflicts between stakeholders in the reform process, limitation of access by
women and youths to programme benefits, and management of social impacts of agropolis
projects. The proposed Environmental and Social Management Master Plan (ESMMP), detailed in
Technical Annex 2 (Volume 2), seeks to improve PAPMV environmental governance by
including and addressing environmental conservation issues in PAPMV implementation activities.
It includes the development of environmental assessment tools, tools for environmental impact
management on parcels of land, environmental and social measures, as well as capacity building
measures. The ESMMP will be partly implemented through measures already provided in the
PAPMV with Bank support. Some measures will thus be included in the Kingdom of Morocco’s
strategic programme for managing the environmental and social impacts of the Green Morocco
Plan1.
4.6.2 Climate Change: The PAPMV is a grassroots environmental programme by virtue of its
actions for collective conversion to localized irrigation, promotion of integrated groundwater
management, development of water and local products, promotion of energy conservation and
renewable energy in irrigation, promotion of gender and capacity building for players. The
PAPMV is expected to increase the resilience of agricultural activities and the population to
climate change. The PAPMV also intends to use a powerful tool, that is NAMA, to identify all the
necessary GHG emission mitigation actions of the agricultural sector, and will boost these efforts
1 The summaries of the Strategic Environmental and Social Assessment and the ESMMP were posted on the
Bank’s website.
19
so as to be eligible for financing mechanisms that will be established at the international level
under the United Nations Framework Convention on Climate Change (UNFCCC). This challenge
involves the collaboration of the Departments of Environment and the Department of Agriculture
and Energy.
4.6.3 Social Considerations: The PAPMV will have major positive impacts on Morocco’s
agricultural sector, particularly on incomes, employment, organization of stakeholders,
instrumentation and consultation of various stakeholders, as well as on the conservation and
development of agricultural water. The PAPMV will lay the foundation for sustainable adaptation
of the agricultural sector to climate change. The PAPMV will therefore increase the resilience of
the rural population to climate change, and thereby substantially contribute to poverty reduction.
The negative social impacts will be conflicts of interest related to changes in the role of
stakeholders, the spread of waterborne diseases, and the risk of poisoning by pesticides. The
measures proposed in the ESMMP will reduce these negative impacts to acceptable levels. The
PAPMV will not entail any forced resettlement.
4.7 Impact on Capacity and Institution Building
In view of the programme focus on agricultural water strategic planning, governance,
management, development and protection measures, it is expected that the programme will have a
positive impact on capacity and institution building of the stakeholders. However, to ensure
sustainability of the expected gains, it is necessary to make efforts to coordinate the replication of
achievements. The instruments to be established (Road Map, Task Force, Information and
Monitoring-Evaluation System, etc.) will certainly help to build institutional capacity.
V PROGRAMME IMPLEMENTATION, MONITORING AND EVALUATION
5.1 Implementation Arrangements
5.1.1 Institutional Arrangements: Then PAPMV will, in particular, mobilize the following
departments: (i) the MAPM (DSS, DF, DIAEA, DDFP, DERF, etc.); (ii) the MEMEE
(Departments of Water Resources, Environment and Energy -ADEREE). The Department of
Strategy and Statistics (DSS) will assume technical responsibility on the basis of agreements to be
signed with the departments concerned (Water Resources, Environment and Energy) and the
Department of the Budget of the Ministry of the Economy and Finance (MEF) will be responsible
for strategic coordination.
5.1.2 Financial Management: Due to the nature of the operation, resources will be used in
compliance with country finance regulations. The Ministry of the Economy and Finance (MEF)
will be responsible for managing the said resources, and will ensure that the Department of
Agriculture (MAPM-DA) or other sector entities concerned by the programmes benefit from the
budget lines provided in the finance law and any other allocation needed for programme
implementation. The internal auditing of the programme will be based on the country a posteriori
internal auditing system, carried out in accordance with their respective mandates, by the General
Inspectorate of Agriculture (IGA) and the General Inspectorate of Finance (IGF). The entire
public expenditure circuit will be used, subject to Government’s commitment to pursue the
ongoing strategic reform of the public service and public finance management, and the specific
strengthening of the internal auditing of the sector department by implementing an action plan
aimed at building IGA capacity and the efficiency of MAPMA-DA internal auditing. The plan
will include three basic actions: (i) build the capacity of IGA of MAPM-DA by signing a
partnership contract between IGF and IGA covering training and support; (ii) strengthen the
efficiency of PAPM-DA internal auditing by preparing a risk map of the Department of
Agriculture; (iii) Prepare, and then by IGA, a target internal audit programme 2013-2015 based on
risk mapping.
20
5.1.3 Disbursements and Funds Flow: The loan will be disbursed in two successive tranches
following its approval by the Board of Directors and its effectiveness, subject to fulfillment, by
the Borrower, of the related general and specific conditions mentioned in section 6.2. At the
Borrower’s request, the Bank will disburse the funds into a designated foreign exchange bank
account opened by the Government at the Central Bank of Morocco (Bank Al-Maghrib). The
Borrower will ensure that once the deposit is made into that account, equivalent funds in local
currency are transferred to the Treasury’s current account, which is the State budget account.
Within 30 days following each disbursement, the Ministry of the Economy and Finance (MEF)
will submit to the Bank a transfer confirmation letter indicating that the total loan amount has
been received, converted and paid into the Single Treasury Account. The Bank has undertaken to
disburse its support for the 2012 and 2013 budgets.
5.1.4 External Auditing: Given that the funds are fungible in the State Budget, the general
audit of their use will be conducted by Morocco’s Audit Bench (auditing of the 2012 and 2013
audited budgets) and published within the timeframes stipulated in the Organic Law. In addition,
the IGF will, throughout the duration of PAPMV (2012-2014), conduct specific annual audits of
the financial flows of ADB support and the performance of PAPMV measures implementation for
each fiscal year concerned. This audit will cover: (i) the accuracy of the designated account
transactions related to disbursements of ADB support in the year concerned, including the
accuracy of currency conversions, the exchange rate and confirmation of effective payment into
the State budget account; and (ii) progress in the implementation of measures and achievement of
PAPMV objectives and performance indicators. The deadline for submission of the specific
financial flows performance audit report by the IGF to the Bank will be six months following the
close of the fiscal year concerned.
5.2 Monitoring and Evaluation Arrangements
5.2.1 The programme implementation will be monitored and coordinated on the basis of the
matrix of measures, as well as the outcomes and performance monitoring framework presented in
the Annex in Volume 2, and also during joint missions composed of representatives of the
MAPM, the MEMEE (Water Resources, Environment and Energy-ADEREE) and the MEF.
These missions will be undertaken twice a year, in line with the budget schedule.
5.2.2 The Bank’s Morocco Country Office will play a key role and participate in supervisions
and monitoring meetings organized by the Government. The Bank will also monitor the
implementation of programme activities through half-yearly progress reports to be submitted
regularly by DB/MEF. At the end of the programme, a completion report will be prepared jointly
with the Government.
VI LEGAL INSTRUMENTS AND AUTHORITY
6.1 Legal Instruments
The legal instrument to be used for the programme is the Loan Agreement signed between the
Borrower and the Bank.
6.2 Conditions Associated with Bank’s Involvement
6.2.1 The loan, in the form of a sector budget support, shall be disbursed in two tranches (first
tranche: EUR 60 million and second tranche: EUR 45 million). Disbursement shall be subject to
effectiveness of the Loan Agreement and fulfilment of the following conditions precedent
(targeted conditions that can be fulfilled considering the lessons learned from other budget
support operations):
21
Condition Precedent to Disbursement of the First Tranche of the Loan:
(i) Provide the Bank with evidence of the opening of a special account to receive the
loan resources.
Conditions Precedent to Disbursement of the Second Tranche of the Loan: Provide the Bank with
evidence of:
(ii) drawing a National Irrigation Map (CNI) of Morocco (cf. para. 4.2.4) ;
(iii) preparing a Road Map for ORMVA institutional reform (cf. para. 4.2.8) ;
(iv) implementing the action plan for promoting the marketing of agropolis (cf. para.
4.2.12).
6.2.2 Commitments: The Government undertakes to: (i) strengthen the sustainability of
reliable public finance management and control mechanisms that ensure steady progress in the
implementation of ongoing or scheduled public finance management system reforms; and (ii)
implement an action plan aimed at strengthening IGA capacity and the efficiency of internal
auditing within MAPM-DA.
6.3 Compliance with Bank Policies
The programme is consistent with the guidelines of: (i) the Country Strategy Paper (CSP 2012-
2016), (ii) the Bank’s Medium-Term Strategy (2008-2012), (iii) the Bank’s Agricultural Sector
Strategy (2010-2014), and (iv) the Poverty Reduction Strategy. It is also in keeping with the new
OAP policy approved in March 2012 (cf. 3.1.3 and 3.1.4).
VII. SUSTAINABILITY AND RISK MANAGEMENT
7.1 Sustainability
7.1.1 The key factor of PAPMV outcomes sustainability lies in the political will of Moroccan
authorities to continue the reforms. The second sustainability factor is the support of professional
entities and the capacity to mobilize investments. The third factor lies in enhanced private sector
involvement and performance to generate the desired impetus, particularly for the agricultural
aggregation process and agropolis, and respond to public offers (private agricultural council,
public-private partnership, etc.).
7.2 Potential Risk Management
7.2.1 Major Risks: The major risks could come from external shocks caused by the
unfavourable global economic situation and socio-political demands, as well as the vagaries of the
weather and overall weak inter-sector coordination capacity. Concerning the programme
components, the risks will stem from overexploitation of water resources, marginalization of some
groups of players, differing interests of stakeholders, weak support from private sector or
corporate players, and socio-cultural resistance to gender issues. Another major challenge of the
programme is intra-and inter-institutional consultation.
7.2.2 Mitigation Measures: Risk mitigation depends on Government’s capacity to propose
reforms to mitigate the climate risk, the strengthening of inter-sector coordination through high-
level support of the authorities, and strengthening of the TFP Agricultural/PMV Thematic Group.
Consultation committees will be set up in the programme components to facilitate the search for
solutions to integrated planning, the issue of groundwater tapping and legal measures to give a
feeling of security to the various stakeholders (aggregation, private agricultural council, etc.).
Each reform will also be accompanied by sensitization and communication, especially for gender
issues. The principle of consultation and participation will be reinforced through enhanced
involvement of beneficiaries, who will be represented in coordination and consultation
committees through socio-professional entities.
22
VIII. RECOMMENDATION
It is recommended that the Board of Directors should approve an ADB loan not exceeding EUR
105 million (equivalent to UA 90 million) to the Government of Morocco for the purposes and
subject to the conditions stipulated in this report.
Appendix 1
Page 1/9
Government’s Sector Development Policy Letter
No. 1265/DSS Rabat, 27 June 2012
Mr. Donald KABERUKA
President of the African Development Bank
Tunis, TUNISIA
Subject: Agricultural Sector Development Policy Letter
Mr. President,
Agriculture is at the core of national concerns and constitutes a key development pillar in
Morocco. Its economic and social importance, its core association in the rural areas and the
multiplicity of its functions concerning especially the food, economic, social and environmental
components, make it a strong engine of development for our country.
The importance of the agricultural sector is reflected in its significant contribution to the country’s
GDP formation (15% to 20% and job creation (40%), particularly in rural areas where agriculture
remains the leading employer (80%) and the main source of income (1.5 million farmers).
The agricultural sector’s performance shows significant but differing results. This performance
has been further mitigated by the high population growth rate in our country and inadequate
diversification of economic activities in rural areas. This trend has led to a chronic growth deficit
of the sector in relation to high rural household and market demand. The need to significantly
increase agricultural incomes by investment and upgrade the sector’s capacity to contribute to
food security within a new promising context requires a new agricultural policy. The response was
provided by the Green Morocco Plan being implemented since 2008 and which seeks to make
Morocco’s agriculture an engine of economic growth and poverty reduction over the next 15
years.
I- PRESENTATION OF THE AGRICULTURAL SECTOR
Over the past ten years, the average annual agricultural GDP growth rate has been +3.98%.
Growth has varied widely because of drought years (1 year on 2).
Our country’s agriculture partially or completely covers domestic market needs in food products.
The coverage rates of domestic needs by domestic production have been consolidated at 55% for
cereals, 100% for fruits and vegetables, 43% for sugar, 20% for oils, 90% for milk, and up to
100% for meats. Indeed, cereals, vegetable oils and oilseeds, sugar and dairy products account for
66% of the average value of agricultural imports.
Food exports represent 19% of the country’s total exports, or MDH 22 billion. These comprise
essentially fresh citrus fruits, fresh vegetables and canned vegetables, which account for 20%,
20% and 16% of average agricultural export value respectively.
Irrigated areas, which cover 1.4 million hectares or 15% of the farm area, account for 45% of
agricultural value added. These areas, though unevenly distributed across the national territory,
constitute growth poles that contribute significantly to strengthening and stabilizing the country’s
food security and improving living conditions in rural areas.
Furthermore, our agriculture is cereal-dominated (70% of agricultural area in use for 10% of jobs)
and therefore extremely vulnerable to unstable weather conditions. As such, it is important to
adapt agricultural policies to the country’s agro-ecological diversity and the effects of climate
change.
Appendix 1
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For a significant part of the sector and in the various regions, the existing stakeholders are
divided, weak, disorganized and incapable of addressing the challenges of modern agriculture
with their own resources. Indeed, the weak links between the stakeholders, coupled with a
deficiency in the organization of sub-sectors around aggregators with a high investment and
managerial capacity, is the main cause of the deficit in productivity, investment and development
of Moroccan agriculture. It is also the main reason for the insufficient financing of the sector by
the domestic banking system, which hardly covers 16% of financing requirements. Marketing is
an essential link in the development of agricultural products whose competitiveness at the
production stage is unchallenged. It is necessary to develop sales on the domestic and export
markets to achieve the set objectives. The domestic market can, as the case may be, benefit from
such dynamism and/or be its catalyst. However, the domestic marketing channels have structural
weaknesses related to the lack of liberalization and competition, dysfunctions in reference price
determination and sharing of related information at the national level, and limitations regarding
the development of modern distribution.
Transaction costs of agricultural products are high. Efforts are underway to modernize distribution
channels in the domestic market (reform of wholesale trade, modernization of infrastructure,
promotion of quality: labelling, traceability, geographical indication, etc.).
As regards strategy, efficient operation of the domestic market around structured and organized
stakeholders to supply quality products to Moroccan consumers, at a competitive and/or
affordable price, should be based on the following guidelines:
Improvement of market access by gradually liberalizing domestic markets;
Upgrading standards in terms of quality and hygiene;
Fostering the modernization of marketing channels.
Furthermore, the country’s agriculture is resolutely being opened up to the global market, either
through unilateral trade liberalization initiatives or through bilateral or multilateral free trade
agreements.
Such overtures have enabled the sector to externalize part of its productive potential, and thus help
to capitalize on achievements in domestic and external markets. Efforts are being made to adapt
the system of subsidizing and protecting domestic agricultural production sub-sectors based on the
sector’s objectives, taking into consideration commitments made by the country at the
international level.
Given the global market situation and long-term trends in global markets for agricultural products
(upturn in demand, recovery of the prices of food products, increase in demand for biofuels,
significant agricultural commodity price fluctuations, etc.), adjustment of tariff protection
measures should be accompanied by the establishment of a conducive and incentive framework
for better allocation of the sector’s resources and improvement of the competitiveness of domestic
sub-sectors, which guarantee growth in the sector and the country’s food security. Efforts should also be made to improve long-term visibility for investors and operators and foster
sustained stakeholder commitment.
To consolidate our achievements and take advantage of the strategic role that Morocco can play as
a trade, business and investment platform, it is also necessary to develop an aggressive strategy to
promote our exports, especially through the harmonization of regulations and procedures,
sustained support for established the sub-sector, promotion of Morocco’s quality label for
products of high commercial value, development and promotion of certain niches and local
products, prospecting of markets, etc.
Appendix 1
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To address the various constraints, Morocco three years ago embarked on its new national road
map for the agricultural sector, namely ‘Green Morocco Plan”, whose objective is to modernize
agriculture and integrate it harmoniously into the domestic and global economy. The Plan seeks to
make the agricultural sector the main engine of the country’s economic development over the next
fifteen years. To this end, well defined and quantified production targets have been set and
included in Regional Agricultural Plans throughout the country.
II- GOVERNMENT’S AGRICULTURAL STRATEGY
II.1 PRESENTATION
Launched in 2008, the Green Morocco Plan (PMV) is an ambitious strategy whose goal is to raise
the agricultural sector to a veritable lever of socio-economic development in Morocco, in line with
our country’s major priorities, namely job creation, poverty reduction, and environmental and
biodiversity protection.
This strategy is centred on a comprehensive approach involving all stakeholders operating in the
agricultural sector, and built around two pillars: Pillar I focused on accelerated development of
high value added agriculture, and Pillar II focused on upgrading vulnerable farmers in
disadvantaged areas through significant State contribution.
In terms of objectives, the Green Moroccan Plan seeks to implement, by 2020:
- 961 Pillar I projects by investing a total amount of MDH 75 billion;
- 545 Pillar II projects for 855 000 farmers for MDH 20 billion in investment;
- more than one hundred cross-cutting projects for MDH 53 billion in investment.
Pillar I Projects:
Pillar I projects are agricultural projects based on private investment undertaken in high potential
areas. They are aimed at developing productivist and modern agriculture, and fostering its
integration into the global economy. This type of projects are essentially built around the
aggregation concept, which helps to overcome constraints related to fragmentation of land tenure
entities, while ensuring access of aggregated farms to modern production techniques, financing
and markets.
Pillar I projects receive special attention from the State under private investment promotion
through the Agricultural Development Fund.
Pillar II Projects:
Pillar II projects are economically viable agricultural projects based essentially on direct State
intervention in some marginal areas (disadvantaged dry, mountainous or oasis areas), taking into
account the need to protect natural resources.
To reinforce this strategy, supervise the sector and provide it with human and material resources
to achieve the set objectives, major structuring reforms and actions were implemented, focused on
the organization of the Department of Agriculture, organization of professionals, construction of
infrastructure, formulation of water policy, and improvement of the agricultural business climate.
II.2. MAJOR ACHIEVEMENTS
More than three years after the launching of the PMV, Moroccan agriculture is resolutely on the
path of promising development, as shown by the volumes of investment, growth in the output of
major sub-sectors, as well as the mobilization of international partners and donors who are
confident in the sector’s future.
Appendix 1
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This momentum has been backed especially by:
the launching of a series of major agricultural projects in all regions of the Kingdom;
the implementation of numerous structuring reforms and actions focused on the
restructuring of the Department of Agriculture, organization of professionals, development
of infrastructure, revision of the water policy, improvement of the “agricultural business
climate” and lifting of impediments to investment, formulation of a new vision of the
Agricultural Council, as well as review of the sector’s legal and regulatory framework
(inter-trade organizations, aggregation, organic farming, etc.)
To enhance their impact, these reforms are backed by a substantial renewal of the legal and
regulatory framework, with, in particular, the preparation of a legal framework for inter-trade
organizations, a law on aggregation, and a law on organic farming that will enable our country to
position itself in this buoyant market segment.
Lastly, to support farmers who are the primary agricultural development stakeholders, the
outcomes for agricultural insurance to cover risks associated with agricultural activities have been
the Support Programme of the European Union for the development of Morocco’s Agricultural
Sector Policy, as well as a new vision of the Agricultural Council to better guide farmers and
sustainably improve their farming practices and incomes.
Institutional Reforms: Reorganization of the Department of Agriculture and Establishment
of New Entities to Support the Implementation of the Green Morocco Plan
The Green Morocco Plan has initiated extensive and comprehensive institutional reform in the
agricultural sector, leading to further reorganization of the Ministry of Agriculture and
redefinition of the missions and powers of its entities.
Thus, regarding the organization of the Ministry, the reform led to:
the restructuring of the Department of Agriculture in 2009 around a new organization
chart to better distribute its missions and strengthen its capacity in terms of sector
management and oversight;
the establishment of 16 Regional Directorates of Agriculture to support regionalization
and decentralization;
the overhaul of Chambers of Agriculture (Law No. 27-08) to strengthen the credibility and
influence of these institutions and make them key players in the development of the
agricultural and rural world.
Furthermore, three new entities have been established to support the Green Morocco Plan,
namely:
The Agency for Agricultural Development (ADA), which is mainly responsible for
promoting the domestic supply of agricultural investments and organizing communication
and information actions for investors and various stakeholders in the agricultural sector.
The National Food Safety Authority (ONSSA), which is in charge of ensuring increased
State policy integration and efficiency in terms of the quality control of animal and plant
products.
The National Agency for the Development of Oasis and Arganier Areas (ANDZOA)
which is mainly responsible for promoting the management and sustainable development
of oasis and arganier ecosystems.
Appendix 1
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Overhaul of the Agricultural Development Fund, a Major Investment Incentive Tool
The overhaul of the Agricultural Development Fund focused on:
- the introduction of new subsidies upstream and downstream all plant and animal
production sub-sectors and concerning essentially agricultural equipment, plantations,
intensification of animal production, development units, and export promotion;
- Increasing assistance granted to some categories of farmers, particularly equipping
localized irrigation farms, which henceforth benefit from 100% subsidy rate for farmers
with farms of a surface area of less than 5 ha and farmers who are members of an
aggregation project, and a 80% rate for other categories of farmers ;
- Encouraging aggregation projects through an incentives plan for aggregators who are
aggregation project developers and aggregated farmers.
Irrigation Infrastructure and Agropolis for Improved Agricultural Production Development
National Irrigation Water Conservation Programme
To meet the requirements in developing more competitive and sustainable agriculture advocated
by the Green Morocco Plan, the National Irrigation Water Conservation Programme (PNEEI) was
adopted as one of the cross-cutting measures aimed at mitigating water stress considered as the
main factor limiting improvement of agricultural productivity.
This programme seeks to convert surface and spray irrigation to localized irrigation on a surface
area of nearly 550 000 ha over a 10-year period. The total programme cost is MDH 37 billion.
Its major expected impacts are the conservation of 1.4 billion cubic metres of water annually,
doubling of the average value added per cubic metre of water and increase in farmers’ incomes.
Programme to Reduce the Gap between Dams and Irrigation Schemes
The programme to reduce the gap between areas dominated by dams and equipped areas is aimed
at creating new irrigation areas and reinforcing the irrigation of existing areas dominated by dams
that have been constructed, are under construction or are scheduled for the 2008-2012 period by
the Secretariat of State in Charge of Water Resources and the Environment.
This equipment gap concerns 140 000 ha and 68% of it is attributed to Al Wahda dam (Gharb
area). The overall programme cost is MDH 18.2 billion, and it will be implemented over a period
of 9 years from 2010 to 2018.
Appendix 1
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The main programme objectives are:
Utilization of water resources mobilized by dams for irrigation ;
Enhancement of irrigation water distribution efficiency through the development and
integration of more efficient localized irrigation techniques;
Improvement of the profitability and impact of major irrigation infrastructure built by the
State;
Intensification and development of agricultural production.
Agropolis Projects
To provide an appropriate framework for integration of the entire value chain of the agro-
industrial sector, the Green Morocco Plan provided for the establishment, over the 2009-2015
period, of 6 agropolis in Meknès, Oriental, Tadla, Souss, Haouz and Gharb regions.
The main objectives of agropolis are:
Enable the region to benefit from significant value added of the agricultural sector;
Organize the agro-industrial sector in specified areas;
Create synergy between enterprises and agropolis players;
Integrate the entire value chain of the agro-food sector.
New Agricultural Council Strategy
A new Agricultural Council strategy has been designed. Its objective is to strengthen support for
farmers and increase the transfer of agricultural know-how on the ground. This strategy will help
to ensure outreach public service for all farmers and achieve a coverage rate of one extension
officer for 1 350 farmers by 2015, compared to one for 3 800 farmers at present.
The said strategy focuses on three main areas:
- Development of the private agricultural council, with an appropriate legal framework, and
degressive subsidizing of agricultural council services under certain conditions;
- Revitalization of State services through the modernization of State outreach entities and
development of new modern communication and knowledge management tools;
- Empowerment of bodies representing farmers (Chambers and Agriculture and inter-trade
organizations) with a contractual commitment in a participatory road map.
This strategy seeks to sustainably and efficiently support projects and production sub-sectors
included in Regional Agricultural Plans. It includes multi-year action plans defining new
governance mechanisms, tools and methods of disseminating agricultural knowledge. The
strategy’s goal is to establish a plural and efficient agricultural council system in order to be in
line with changes in the agricultural sector.
Development of Local Products
One of the priorities of the Green Morocco Plan is the development of local products in light of
Morocco’s actual potential in terms of a conducive ecosystems, varied biodiversity and know-how
in this area, the cultural dimension of these products which are part of the Moroccan heritage and
the strong social dimension of production of local products which is often carried out in remote
and disadvantaged areas.
Appendix 1
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To date and since the entry into force of Law No. 25-06 on distinctive origin and quality marks
(SDOQ) of foodstuffs and agricultural and fishery products, the Ministry of Agriculture and Sea
Fishery has recognized many SDOQ (“Argane” Geographical Indications, “Clémentine de
Berkane”, “Dattes Majhoul de Tafilalet”, “Grenade Sefri Oulad Abdellah”, “Agneau Béni Guil”,
“Figue de Barbarie d’Aït Baârmane” and “Fromage de Chève Chefchaouen”, Appellations of
Origin of Olive Oil “Tyout – Chiadma”, “Safran de Taliouine” as “Rose de Kélâat M'Gouna-
Dadès”, Controlled-Origin Brand “Agneau Laiton”, etc.).
Improvement of the Legal and Regulatory Framework
An important component of support for the implementation of the Green Morocco Plan was the
overhaul of legal and regulatory instruments governing the agricultural sector. Since 2008, many
draft legal instruments have been initiated; these include 113 draft instruments (8 bills, 32 draft
decrees, 73 draft orders, and 21 draft agreements and programme contracts).
Many instruments have already entered into force or are being validated. The instruments have
been designed to reflect the vision of the Green Morocco Plan into terms of sector supervision,
improvement of its standards and support to farmers.
III- AFRICAN DEVELOPMENT BANK’S SUPPORT FOR THE GREEN MOROCCO
PLAN
The Green Morocco Plan is pursuing its major reform projects. The Development Policy Loan,
which is the subject of this letter, is aimed at supporting the implementation of this Programme
which focuses on the following components:
1. Support for irrigation infrastructure development;
2. Strengthening of the governance system and improvement of agricultural water
management;
3. Development of agricultural water and promotion of the business climate;
4. Promotion of gender, energy conservation and agricultural water protection.
1. SUPPORT FOR IRRIGATION INFRASTRUCTURE DEVELOPMENT
The conservation and development of water resources is at the core of priorities to be promoted in
order to ensure the country’s sustainable economic and social development. The PNEEI, PRD and
PMH areas are strategic programmes for irrigation water conservation and extension of irrigation
facilities.
The main objective of this component, which is to improve irrigation infrastructure planning, will
help to enhance visibility in the programming and execution of new facilities (dam and related
areas), as well as the conversion of irrigation systems and programming of the necessary support
for water development.
To achieve this objective, the Government will implement actions aimed at:
- Improving instruments for irrigation infrastructure planning;
- Conducting development studies under the National Irrigation Water Conservation
Programme (PNEEI), the Irrigation Extension Programme (PEI) and Small-and Medium-
Scale Waterworks (PMH) areas.
Appendix 1
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2. STRENGTHENING OF THE GOVERNANCE SYSTEM AND IMPROVEMENT
OF AGRICULTURAL WATER MANAGEMENT
The objectives of this component are to:
2.1 Consolidate the agricultural water governance system;
2.2 Strengthen the management of demand for water resources;
2.3 Strengthen integrated water resources management.
To achieve these objectives, the Government will implement actions aimed at:
- Consolidating water service reform and launching public-private partnership ;
- Initiating institutional reforms of ORMVAs in order to adapt them to the PMV-driven
context ;
- Enhancing AUEA performance and developing good practice tools;
- Developing integrated water resources management tools;
- Enhancing the use of treated wastewater for irrigation ; and
- Identifying new water resources.
3. DEVELOPMENT OF AGRICULTURAL WATER AND PROMOTION OF THE
BUSINESS CLIMATE The objectives of this component are to:
3.1. Improve the business climate and private agricultural investment;
3.2. Upgrade value chains;
3.3. Initiate reform of agricultural research and the public and private agricultural council
system.
To achieve this objective, the Government will implement the following measures:
- Strengthening of the aggregation mechanism and inter-trade organizations;
- Strengthening of agropolis operationalization ;
- Strengthening of the incentives system: Agricultural Development Fund (FDA) ;
- Development of agricultural insurance ;
- Reinforcement of the promotion of high value added and local products :
- Development of outreach agricultural services by introducing an incentives system for
agricultural service corporations (mechanization) ;
- Introduction of innovative approaches for agricultural research and training by conducting
the study on the National Agricultural Training and Research Strategy (SNFRA) ;
- Reinforcement of framework conditions for the establishment of the private agricultural
council.
4. PROMOTION GENDER, ENERGY CONSERVATION AND AGRICULTURAL
WATER PROTECTION
The objectives of this component are to:
4.1 Improve gender mainstreaming;
4.2 Promote energy conservation in the agricultural sector;
4. 3 Strengthen water resources monitoring and protection;
4.4 Intensify efforts to mitigate the effects of climate change in Morocco.
These objectives will be achieved by implementing the following measures:
- Developing energy conservation options for the agricultural sector ;
- Strengthening water optimization, monitoring and protection tools ;
- Developing a NAMA for the agricultural sector.
Appendix 1
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IV- Reform Programme Monitoring and Implementation Conditions
In addition to programme operational monitoring-evaluation which will be conducted jointly by
the Strategy and Statistics Department and the Department of Irrigation and Agricultural Area
Development of the Ministry of Agriculture and Sea Fishery, a steering committee comprising the
representatives of ministries and bodies involved in the programme (Ministry of Agriculture and
Sea Fishery, Ministry of the Economy and Finance, Secretariat of State in Charge of Water
Resources and Environment, Ministry of Energy and Mines, Agency for Agricultural
Development and Agency for Renewable Energy Development and Energy Efficiency) will be set
up in the Ministry of the Economy and Finance. This committee will be responsible for ensuring
inter-ministerial coordination and strategic monitoring of the implementation of this programme.
Considering the scope of this reform programme, which is a continuation of efforts already
undertaken, the Government of Morocco is counting on the support of your institution in the form
of a sector budget support.
As we thank you for the African Development Bank’s interest in the development of the
agricultural sector,
Please accept, Mr. President, the assurances of my highest consideration.
Appendix 2
Page 1/6
MOROCCO- GREEN MOROCCO PLAN SUPPORT PROGRAMME-PAPMV
MATRIX OF PROGRAMME MEASURES
Data Sources: DS; Responsible Institutions: RI
(1) Condition for the disbursement of the first tranche of the loan; (2) Condition for the disbursement of the second tranche of the loan
Objectives Outputs
PAPMV Measures
1st Tranche
(October 2012)
PAPMV Measures
2nd
Tranche
(October 2013)
Target Output
Indicators
Target Outcome
Indicators
Data Sources and
Responsible Institutions
COMPONENT 1: SUPPORTING IRRIGATION INFRASTRUCTURE DEVELOPMENT
1. 1 – IMPROVE
IRRIGATION
INFRASTRUCTUR
E PLANNING
Irrigation
infrastructure
planning
instruments are
available
Prepare a road map for EEI
by 2020
Road map is prepared Additional areas
converted to localized
irrigation
DS: Road map note
RI: DIAEA/DE
Design a national EEI
Investment Programme by
2020 (PNIEEI)
The PNIEEI is designed Additional areas
converted to localized
irrigation
DS: Note on PNIEEI
RI: DIAEA
Prepare a National Irrigation
Map (CNI) for Morocco(2)
The National Irrigation
Map is prepared
Additional areas
converted to localize
irrigation
DS: Note on CNI
RI: DIAEA
Establish a monitoring-
evaluation system for PNEEI
and PEI
The monitoring-
evaluation system is
designed
Areas studied
Areas developed
DS: Note on SSE
RI: DIAEA
Develop a road map to reduce
gap noted till the end of 2011
between areas dominated by
dams and those developed for
irrigation
Road map is prepared Additional areas
developed annually
DS: Road map note
RI: DIAEA
PNEEI, PEI and
PMH programmes
development
studies are
available
Finalize studies under tranche
2 on collective conversion (20
000 ha), feasibility of projects
for the development of 4 GH
areas (108 800 ha), and
planned development of 4
PMH areas (11 300 ha)
Studies on collective
conversion projects are
available
Feasibility studies of
AHA projects are
available
IP PMH development
studies are available
Areas studied for
conversion
Areas studied for
extension
DS: Study briefing note
RI: DIAEA
Finalize studies under tranche
3 on collective conversion to
localized irrigation (20 000
ha), HA feasibility studies of
PMH areas associated with the
Studies on collective
conversion to localized
irrigation projects are
available
Areas studied for
conversion
Areas studied for
extension
DS: Study briefing note
RI: DIAEA
Appendix 2
Page 2/6
Objectives Outputs
PAPMV Measures
1st Tranche
(October 2012)
PAPMV Measures
2nd
Tranche
(October 2013)
Target Output
Indicators
Target Outcome
Indicators
Data Sources and
Responsible Institutions
12 existing dams and those
under construction (36 650 ha)
Feasibility studies on
AHA projects are
available
An integrated
planning
coordination
mechanism has
been established
Establish an inter-ministerial
committee (MEF, PMMA,
MEMEE, etc.) to promote the
integrated planning of dams
and associated areas
Number of meetings Reducing of gap
between dams and
associated areas
DS: Meeting minutes
RI:MEF
COMPONENT 2: STRENGTHENING OF THE GOVERNANCE SYSTEM AND IMPROVEMENT OF AGRICULTURAL WATER MANAGEMENT
2. 1 – STRENGTHEN
THE
AGRICULTURAL
WATER
GOVERNANCE
SYSTEM
The water service
reform is
strengthened and
public-private
partnership is
launched
Launch the economic policy
analysis of the irrigation
sector reform
The framework
memorandum is
prepared
The second generation
of reforms in the
irrigation sector is
launched
DS: Framework
memorandum
RI: DIAEA
Launch the study on the
structuring of PPP in Dar
Khroufa irrigation
Competitive bidding
launched
Study on PPP
structuring conducted DS: Publication of
competitive bidding
RI: DIAEA Design a feasibility study on
PPP in Dar Khroufa irrigation
The feasibility study is
designed
PPP feasibility study
is conducted
SD: Note on feasibility
RI: DIAEA
The institutional
reforms of
ORMVAs are
initiated to adapt
them to the
context driven by
PMV
Initiate reflection on prospects
for the institutional reform of
ORMVAs
ToR are prepared A Task Force is set
up
DS: Task Force road map
RI: DIAEA Prepare a road map for the
institutional reform of
ORMVAs in view of
developments in PMV (DRA,
ONCA, NAHO, PPP, laws,
etc.) and Advanced
Regionalization (2)
ORMVA institutional
reform road map is
prepared
Reforms are initiated DS: Note on roadmap
RI: DIAEA
2.2 – STRENGTHEN
MANAGEMENT OF
DEMAND FOR
WATER
RESOURCES
The performance
of AUEAs is
enhanced and best
practice tools
developed
Initiate reflection on the role
of agricultural water users
associations (AUEAs) in
modernized irrigation systems
TOR are prepared A Task Force is
established
DS: TOR
RI: DIAEA
Launch a programme to build
AUEA capacity
Programme is designed
and launched
Number of AUEA
trained
DS: Training Programme
RI: DIAEA
Prepare a localized irrigation
good practice guide
Guide is available
Dissemination of
guide
DS: Good Practices Guide
RI: DIAEA
Appendix 2
Page 3/6
Objectives Outputs
PAPMV Measures
1st Tranche
(October 2012)
PAPMV Measures
2nd
Tranche
(October 2013)
Target Output
Indicators
Target Outcome
Indicators
Data Sources and
Responsible Institutions
2.3 – STRENGTHEN
INTEGRATED
WATER
RESOURCES
MANAGEMENT
Integrated water
resources
management tools
are developed
Conduct studies on water
table contracts for the two
water tables
Water table contracts
are examined
Concerted and
sustainable
management of
groundwater
DS: Summary of studies
RI: MEMEE-D. Water
The water table contracts for
two water tables are being
considered for approval
Water table contracts
are being considered for
approval
Concerted and
sustainable
management of
groundwater
DS: Water table contract
RI: MEME-DE/ABH
Initiate establishment of a
system for the monitoring and
control of groundwater tapping
System for the
monitoring and control
(SMC) of groundwater
tapping is established
Integration of
protection measures
in PMV
DS: Note on SSC
RI: MEMEE-D. Water
The use of non-
conventional
water for
irrigation is
enhanced
Launch the study on the
Master Plan for the Reuse of
Treated Wastewater (TWW)
in irrigation
Competitive bidding is
launched
Areas developed DS: Publication of
competitive biding
RI: DIAEA
Develop tools to promote the
reuse of treated wastewater in
irrigation
The project bank and
Good Practices Guide
are available
The potential for the
reuse of treated
wastewater is
identified
DS: Project bank, Good
Practices Guide
RI: DIAEA
New water
resources are
identified
Prepare a roadmap for the
artificial recharge of water
tables
Roadmap is available Groundwater
recharge projects are
being implemented
DS: Road map
RI: MEMEE-D. Water
COMPONENT 3: DEVELOPING AGRICULTURAL WATER AND PROMOTING THE BUSINESS CLIMATE
3. 1 – IMPROVE THE
BUSINESS CLIMATE
AND PRIVATE
AGRICULTURAL
INVESTMENT
The aggregation
mechanism is
strengthened
Transmit the Bill on
agricultural aggregation to
the SGG
Bill is tabled before
Parliament
Number of projects
subsidized
DS: Transmittal letter
RI: DAAJ, ADA
Draft implementing
instruments of the law on
agricultural aggregation
Implementing
instruments are drafted
DS: Implementing
instrument
IR : DAAJ, ADA
Transmit the Bill on inter-
trade organizations to the
SGG
Bill is tabled before
Parliament
Number of inter-
trade organizations
formally set up
DS: Transmittal letter
RI: DAAJ, DF, DDFP
Draft the implementing
instruments of the law on inter-
trade organizations
Implementing
instruments are drafted
DS: Implementing
instrument
RI: DAAJ, DF, DDFP
The
operationalization
Formulate an action plan for
agropolis promotion and
Action plan is
formulated
Rate of marketing of
Meknes and Berkane
DS: Action plan
RI: DDFP
Appendix 2
Page 4/6
Objectives Outputs
PAPMV Measures
1st Tranche
(October 2012)
PAPMV Measures
2nd
Tranche
(October 2013)
Target Output
Indicators
Target Outcome
Indicators
Data Sources and
Responsible Institutions
of agropolis is
reinforced
marketing agropolis lots Implement the action plan for
promoting agropolis
marketing (2)
Action plan is
operational
DS: Agreements and
contracts concluded
RI: DDFP Initiate studies on the
establishment of regional
agro-food sub-sector
competitiveness centres around
the Meknes and Berkane
agropolis
Contract to carry out
study on the Meknes
and Berkane
competiveness centres
The Meknes and
Berkane regional
competitiveness
centres are
established
DS: Contract to carry out
study on the Meknes and
Berkane competiveness
centres
RI: DDFP
The incentives
system (FDA) is
strengthened
Reinforce the resources
allocated to the FDA
Amount of resources
allocated to FDA
Amount of FDA
subsidies disbursed
DS: Finance Law
RI: DF/MEF
Agricultural
insurance is
developed
Finalize the study on
agricultural insurance and
draw up a road map
The study on
agricultural insurance
and road map are
available
Number of products
recommended
DS: Road map note
RI: DF
Improve the agricultural
insurance penetration rate
(AI) in the cereal sector
Number of
farmers/hectares
insured
Penetration rate of
agricultural
insurance
DS: Follow-up Note
RI: DF
Launch new AI products
covering several sub-sectors
and risks
Number of products
actually launched
Number of sub-
sectors insured,
Number of risks
insured
DS: Contracts
RI: DF
3.2 - UPGRADE THE
VALUE CHAINS Promotion of
high value added
and local
products
enhanced
Launch a communication plan
to promote local products
(LP)
The communication
plan (CP) is formulated
Number of targeted
sub-sectors
DS: Note on PC
RI: ADA and DDFP
Implement an action plan to
promote local products
The action plan is
operational
SD: Note on Action Plan
IR: ADA and DDFP
Prepare specifications for
products eligible for a
distinctive origin and quality
mark (SDOQ) (Midelt apples,
Tafraout almonds and
Ouazanne olive oil)
Formulate the specifications
for Doukkali grapes
Specifications are
available
Number of
Specifications
submitted
DS: Note on specifications
and files submitted
RI: DDFP
Implementation of the
geographical indication of
three products (Granada, Sefri,
Midelt apples, Tafraout
Number of training
days;
Number of
beneficiaries
DS: Note on training days
and number of beneficiaries
RI: DDFP
Appendix 2
Page 5/6
Objectives Outputs
PAPMV Measures
1st Tranche
(October 2012)
PAPMV Measures
2nd
Tranche
(October 2013)
Target Output
Indicators
Target Outcome
Indicators
Data Sources and
Responsible Institutions
almonds)
Transmit the Bill on the
biological production of
agricultural and aquatic
products to the SGG
Bill submitted to the
SGG
Area/Number of
producers converted
to biological
production
DS: Transmittal Letter
RI: DAAJ, DDFP
Finalize the implementing
instruments of this law
(biological production)
Implementing
instruments drafted
DS: Implementing
instruments
RI: DAAJ, DDFP
Outreach
agricultural
services are
developed
Establishment of an
incentives scheme for
agricultural service
companies (mechanization)
Specifications are
drawn up and signed
SSAs are established
or benefit the SSA
regime for youths
DS: Specifications
RI: DF, DAAJ
3.3 - INITIATE
REFORM OF
AGRICULTURAL
RESEARCH AND
THE PUBLIC AND
PRIVATE
AGRICULTURAL
COUNCIL
MECHANISM
Innovative
approaches for
agricultural
research and
training are
introduced
Design a road map to involve
professionals and the private
sector in the competitive
research and development
mechanism
The road map is
designed
Research and
development is
adapted to needs
DS: Road map
RI: DEFR
Conduct a study on the
National Agricultural Training
and Research Strategy
(SNFRA)
Strategy is available Action plan DS: SNFRA
RI: DEFR
Framework
conditions for the
establishment of
the public and
private
agricultural
council are
strengthened
Transmit to the SGG the Bill
on the establishment of the
National Agricultural Council
Board (ONCA)
Bill is forwarded to the
SGG
ONCA organization
ONCA action plan
Partnership
framework
DS: Transmittal letter
RI: DEFR, DAAJ
Transmit to the SGG the Bill
on the organization of the
profession of private
agricultural extension officer
Bill transmitted to the
SGG
Number of private
extension officers
approved
DS: Transmittal Letter
RI: DEFR, DAAJ
Draft the implementing
instruments of the law on the
organization of the profession
of private agricultural
extension officer
Implementing
instruments available
Number of private
extension officers
commissioned
DS: Implementing
instruments
RI: DEFR, DAAJ
COMPONENT 4. PROMOTING GENDER, ENERGY CONSERVATION AND AGRICULTURAL WATER PROTECTION
4.1 - IMPROVE
GENDER
MAINSTREAMING
The GE is
institutionalized
Launch a diagnostic study and
an action plan for gender
The diagnostic study and
action plan are prepared
Gender measures are
adopted
DS: Study; Action plan
RI: DEFR,
Appendix 2
Page 6/6
Objectives Outputs
PAPMV Measures
1st Tranche
(October 2012)
PAPMV Measures
2nd
Tranche
(October 2013)
Target Output
Indicators
Target Outcome
Indicators
Data Sources and
Responsible Institutions
in MAPM and the
integration youths
in PMV is
improved
mainstreaming in the PMV
Conduct a study on support
for young agricultural
entrepreneurs (young
graduates)
Diagnostic study is
initiated
Opportunities for
youth settlement are
considered
DS: Terms of Reference
RI: ADA
Initiate training and support
the settlement of young
graduates
Youth settlement
projects are designed
PMV measures
targeting youths are
more visible
DS: Settlement projects
RI: ADA, DEFR
4.2 - PROMOTE
ENERGY
CONSERVATION IN
THE
AGRICULTURAL
SECTOR
Options for water
and energy
conservation for
the agricultural
sector are
available
Finalize the Regional Biomass
Master Plan in four regions
Four biomass plans are
formulated
Biomass project
under the PMV
DS: Master Plan
RI: ADEREE
Identify investment project
portfolios in two regions
Two portfolios and 10
feasibility studies are
available
Biomass projects are
financed under the
PMV
DS: Portfolio and Studies
RI: MEMEE-ADEREE
Conduct energy audits of
agro-industrial units (UAIs)
and farms
At least 10 energy audits
of UAIs and 5 audits of
farms are available
Energy saving
measures are
integrated in the
PMV
DS: Energy audits
RI: ADEREE
Initiate the implementation of
the Energy Performance Plan
(PPE) on agro-industrial units
and farms
At least 10 PPEs in UAIs
and at least 5 PPEs in
farms; EE PPEs
Good Practices Guides in
farms
Energy saving
measures are
integrated in UIAs
and farms
DS: Performance Plan
RI: ADEREE
4. 3 - STRENGTHEN
THE MONITORING
AND PROTECTION
OF WATER
RESOURCES
Tools for
optimization,
monitoring and
protection of
water are
reinforced
Transmit the Framework Bill
on the National Environment
and Sustainable Development
Charter to the SGG
The Framework Bill on
the National
Environment and
Sustainable Development
Charter transmitted to the
SGG
Legal and
environmental
framework
strengthened
DS: Transmittal Letter
RI: MEMEE/D. Env.
Support the establishment of
Regional Observatories for the
Environment (ORE)
At least 6 OREs are
available in 2013 and 6
in 2014
Reinforced
environmental
monitoring
DS: Establishment decision
RI: MEMEE/D. Env.
4.4 - ENHANCE
EFFORTS TO
MITIGATE THE
EFFECTS OF CC IN
MOROCCO
An agricultural
NAMA is
available
Develop an agricultural sector
NAMA
Agricultural NAMA
Document available
Development of
NAMA
DS: NAMA
RI MEMEE/D.Env.
Appendix 3
Page 1/3
Conditions Precedent to Budget Support
Specific PSO Eligibility Criteria/Sector Budget Support (SBS)
(Section 6.2 of the New Bank Group's Policy on Programme-Support Operations (PSOs) - Approved on 14 March 2012)
Criteria Key Points
Government's
commitment to
poverty reduction
Macro-economic
stability
Morocco has implemented social policies, particularly under the National
Human Development Initiative (INDH). These reforms contributed to
improving social indicators and reducing the poverty rate from 15.3% to 9%
between 2000 and 2010. In 2012, the Government initiated regionalization
reform, the second phase of the INDH, and the extension of medical coverage
to disadvantaged populations throughout the country. These reforms are
expected to help improve the quality and efficiency of public services so as to
reduce poverty and vulnerability.
The new Moroccan Government presented its Policy Statement to the
Moroccan Parliament in January 2012. Commitments focus on five major
pillars: (i) strengthening of the unified national identity; (ii) consolidation of the
rule of law, advanced regionalization and good governance; (iii) establishment
of a competitive and diversified economy; (iv) development and
implementation of social programmes to reduce poverty; and (v) strengthening
of Morocco's position worldwide. This programme, which seeks to deepen
macro-economic and sector reforms so as to stimulate economic growth and
strengthen the capacity of the economy to withstand external shocks, is
accompanied by a series of detailed medium- and long-term sector strategies,
including the Green Morocco Plan which, through the second pillar, lays
particular emphasis on the development of smallholder agriculture and poverty
reduction in areas with fragile ecosystems (oasis, mountain, etc. areas).
This stability is illustrated by the macro-economic and financial performance
recorded in recent years. At the economic level, even with the prevailing global
financial crisis, the economic fundamentals have been preserved through the
adoption of appropriate fiscal measures (taxation, staple product price subsidy,
etc.).
In the past, the Government demonstrated its commitment to initiate structural
reforms by successfully implementing Public Administration Reform Support
Programmes (PARAP I to III), Financial Sector Adjustment Programmes
Appendix 3
Page 2/3
Satisfactory
assessment of the
fiduciary risk
(PASFI I to IV), the Financial Sector Development Support Programme
(PADESFI), and the Medical Cost Recovery Support Programme (PARCOUM
I and II).
In keeping with the new PSO policy guidelines, consultations with the
International Monetary Fund (IMF) have been initiated, although the IMF has
no office in Morocco. Also, Morocco does not have a programme with the
IMF. The only consultations between Morocco and the IMF take place within
the framework of those under Article IV, of which the latest date back to
November 2011. The conclusions of these consultations indicate that
Morocco’s economic performance is very good. However, the country still
faces challenges, in particular youth unemployment. Unemployment among
young graduates is still high (13.8%). In this context, it is necessary to
accelerate structural reforms to: (i) create fiscal space, particularly through
reform of the remuneration system, and (ii) improve productivity and the
business climate so as to strengthen the role of the private sector as an engine of
inclusive and sustainable growth, generating jobs for the youths.
The Bank's fiduciary services (ORPF.1 and 2) carried out a fiduciary risk
assessment in Morocco in August 2011 and updated it during the preparation of
PAPMV, in accordance with guidelines on the fiduciary risk management
framework for ADB Reform Support Operations (approved in May 2011). This
assessment concludes that the residual fiduciary risk in Morocco is generally
low. This is based on the latest diagnoses of public finance management,
procurement and the level of corruption, including reforms initiated under
PARAP I to IV and the new Organic Finance Law being drafted, as well as
favourable prospects for their continuation. It also concludes that budget
support operations fully using the public expenditure channel may be
continued, subject to the implementation in the medium term of some
mitigation measures recommended. Thus, the next support programme on
public administration (planned for 2012) will be an opportunity to incorporate
measures to rapidly finalize strategic reforms initiated and establish a unified
and effective framework for the planning and coordination of public finance
Appendix 3
Page 3/3
Political stability
Harmonization
management reforms.
The Moroccan regime is a constitutional monarchy and the Kingdom's
institutions are strong and stable. Political changes occur through free and fair
elections, and civil society is very active. In response to the events and
uprisings of 20 February, the King proposed major constitutional reforms that
were voted by referendum and adopted, and also authorized the organization of
early elections.
In accordance with the principles of the Paris Declaration, donors consult each
other regularly in Morocco through consultations in the form of thematic
meetings and sector working groups. The partnership between donors operating
in Morocco is illustrated by operations implemented jointly by the ADB, the
World Bank and the European Commission (PARAP, PASFI, PADESFI, and
PAPNEI). Partnership in the agricultural sector will be strengthened within the
framework of this programme involving other donors (World Bank, EU, AFD,
Belgian Cooperation, GEF, etc.). Support from multilateral and bilateral donors
for the implementation of the Government's agenda has been constant and
massive. For the PMV, a Thematic Group has been set up to coordinate
operations.
Appendix 4
Year Morocco Africa Developing
Countries
Developed
Countries
Basic indicators
Area (1000 Km²) 711 30 323 80 976 54 658 Total Population (millions) 2011 32, 3 1 044 5 734 1 240 Urban Population (% Total) 2011 58.8 40.4 45.5 75.4 Population Density (per Km²) 2011 45.4 34.0 69.1 23.3 GNI per capita (USD) 2010 2 850 1 492 3 726 38 746 Labour Force Participation -Total (%) 2011 34.5 60.7 65.4 67.3 Labour Force Participation -Women (%) 2011 26.6 50.1 49.2 50.2 Gender-related Development Index Value 2007 0,625 0,433 0,694 0,911 Human Development Index (rang among 187 countries) 2011 130 n.a n.a n.a Population Living below USD 1 a day 2007 2.5 n.a 22.4 …
Demographic Indicators Population Growth Rate – Total (%) 2011 1.0 2.3 1.3 0.4 Population Growth Rate - Urban (%) 2011 2.0 3.4 2.3 1.0 Population < 15 years (%) 2011 27.7 40.2 28.7 16.5 Population >= 65 years (%) 2011 5.6 3.6 5.9 16.2 Dependency Rate (%) 2011 49.8 77.6 53.0 48.6 Sex ratio (per 100 female) 2011 96.1 100.0 103.4 94.6 Female Population 15 - 49 years (%) 2011 28.4 22.3 26.2 23.6 Life expectancy at Birth – Total (years) 2011 72.2 57.7 67.0 77.7 Life expectancy at Birth – Female (years) 2011 74.5 58.9 68.9 81.1 Crude Birth Rate (per 1000)) 2011 19.2 33.6 21.1 11.4 Crude Mortality Rate (per 1000) 2011 5.8 11.1 7.8 10.1 Infant Mortality Rate (per 1000) 2011 30.0 72.7 47.1 6.1 Under-5 Mortality Rate (per 1000) 2011 33.1 113.8 67.8 7.8 Total Fertility Rate (per woman) 2011 2.2 4.3 2.6 1.7 Maternal Mortality Rate (per 100 000) 2008 110.0 530.7 290.0 15.2 Women Using Contraceptives (%) 2006-09 63.0 28.6 61.2 72.4
Health and Nutrition Indicators Physicians (per 100 000 people)) 2009 68.0 58.3 109.5 286.0 Nurses (per 100 000 people) 2009 97.0 113.3 204.0 786.5 Births Attended by Trained Personnel (%) 2009 63.0 51.1 65.3 … Access to Safe Water (% of Population) 2010 83.0 64.5 86.3 99.5 Access to Health Services (% of Population) 2007-09 … 65.4 0.0 0.0 Access to Sanitation (% of Population) 2010 70.0 39.0 56.1 99.9 Percent. Of Adults (aged 15-49) Living With HIV/AIDS 2009-10 0.1 4.7 0.9 0.3 Incidence of Tuberculosis (per 100 000) 2010 91.0 239.2 150.0 14.0 Child Immunization Against Tuberculosis (%) 2010 99.0 79.9 83.9 95.4 Child Immunization Against Measles (%) 2010 98.0 71.1 84.3 93.5 Underweight Children (% of children under 5 years) 2000-10 9.9 25.6 17.9 … Daily Calorie Supply per Capita 2007 3 236 2 462 2 675 3 285 Public expenditure on Health (as % of GDP) 2009 5.3 5.7 2.9 7.4
Education Indicators Gross Enrolment Ratio (%) Primary School - Total 2010 113.7 100.8 107.8 101.4 Primary School - Female 2010 110.3 97.3 105.6 101.3 Secondary School -Total 2010 56.1 46.7 64.0 100.2 Secondary School - Female 2010 51.8 41.6 62.6 99.8 Primary School Female Teaching Staff (% of Total) 2006-11 51.0 45.3 60.8 81.7 Adult Illiteracy Rate -Total (%) 2009 56.1 67.0 80.3 98.4 Adult Illiteracy Rate -Male (%) 2009 68.9 75.8 86.0 98.7 Adult Illiteracy Rate -Female (%) 2009 43.9 58.4 74.9 98.1 Percentage of GDP Spending on Education 2009 5.4 4.6 4.1 5.2
Environmental Indicators Land Use (Arable Land as % of Total Land Area) 2009 18.0 7.6 10.7 10.8 Annual rate of Deforestation (%) 2007-09 … 0.7 0.4 -0.2 Annual Rate of Reforestation (%) 2007-09 … 10.9 … … Per capita CO2 Emissions (metric tons) 2009 1.1 1.1 3.0 11.9
Source: ADB Statistics Department database Last updated in: May 2012 World Bank WDI ; UNAIDS; UNSD; OMS, UNICEF, WRI, UNDP, Country Reports
Notes: n.a. Not Applicable; …: Data not available.
COMPARATIVE SOCIO-ECONOMIC INDICATORS Morocco
0 10 20 30 40 50 60 70 80 90
100
2003 2004 2005 2006 2007 2008 2009 2010 2011
Infant Mortality Rate (per 1000)
Morocco Africa
0 1000 2000 3000 4000
2002 2003 2004 2005 2006 2007 2008 2009 2010
GNI per capita $ EUR
Morocco Africa
0.0 0.5 1.0 1.5 2.0 2.5
2003 2004 2005 2006 2007 2008 2009 2010 2011
Population Growth Rate
%
Maroc Afrique
1 11 21 31 41 51 61 71
2003 2004 2005 2006 2007 2008 2009 2010 2011
Life Expectancy
(years)
Morocco Africa
Appendix 5
Status of Donor Support for the Green Morocco Plan (PMV)
Agricultural Sector Policy Support Programme (PAPSA) in the Oriental, Fès Boulemane, Meknès Tafilalet and Souss-Massa Draa regions
Grant (Budget support)
3 -
-
770.00
770.00
State Budget
Budget
Morocco Avian Influenza Preparedness Project: Technical assistance (studies, training, purchase of equipment)
Project grant
grant
2 - 7.60
0
MAPM Budget
Budget Modernization of irrigated agriculture in the Oum Rbia Watershed (Doukkala, Haouz and Tadla)
Project loan
loan
5 983.00
983.00
567.60
567.60
MAPM Budget
Budget Development Policy Loan (PPD1): Support for PMV reforms (Procurement, Pillar II, Agricultural water and agricultural services)
Loan (Budget support)
1 - 1 650.00
650.00
State Budget
Budget
National Irrigation Water Conservation Programme Support (Tadla, Moulouya Loukkos Doukkala)
Project loan
loan
5 781.86
781.86
589.60
589.60
MAPM Budget
Budget Operation for Technical Support to the Development of Irrigation Infrastructure in Morocco financed with Middle-Income Countries Trust Fund (MICTF) resources
Project grant
grant
2 7.00
7.00
6.20
6.20
MAPM Budget
Budget Technical Support for the Promotion of Young Agricultural Entrepreneurs (JEA)
) Project grant
grant
3 7.54
7.54
6.33
6.33
MAPM Budget
Budget Project loan
loan
191.10
191.10 4.20
4.20 Project loan
loan
55.42
55.42 Grant
t
1.19
1.19 Project loan
loan
550.00
550.00 Grant
t
3.30
3.30 Integration of the Effects of Climate Change in the PMV (PICCPMV)
Project grant grant
4 272
2
45.00
45.00
MAPM Budget
Budget "Solidarity-based Integrated Agriculture in Morocco" (ASIMA) Project
Project grant grant
238
8
53.55
53.55
MAPM Budget
Budget Project loan loan
92.40
92.40 4.18
4.18 Integrated Programme for the Development of Fruit Trees in the Northern Provinces (Larache, Tetouan, Chefchaouen and Al Hoceima Taounate)
Project grant grant
5 234
4
200.00
200.00
MAPM Budget
Budget Support Programme for Solidarity-based Agriculture Agriculture within the framework of PMV in 23 Provinces in ten regions of the Kingdom
Project grant grant
5 2231
1
600.00
600.00
MAPM Budget
Budget USAID
D
Economic Competitiveness Programme
Project grant grant
5 216.00
216.00
216.00
216.00
Project developers
Projects
JICA
A
Project for the Improvement of the Irrigation System in the Doukkala Irrigated Area
Project grant
grant
5 55.80
55.80
55.80
55.80
Beneficiary
y farmers
s 5 669.47
669.47 Exchange rate applied: EUR 1 = MDH 11; USD 1: MDH 8.5
5
MAPM Budget
Budget MAPM Budget
Budget
305.00
305.00
HASSAN II FUND
FUND
TOTAL
L
842.00
0
MAPM Budget
Budget
GEF
F
ADB
B
French
h Dev. Agency
Agency
Programme for the Support of PMV Pillar II in the regions of Tangier-Tetouan, Fès-Bouleman and Taza Taounate-Al Hoceima
.
MAPM Budget
Budget
Programme for the Development of Agricultural Sectors in the Mountainous Areas of Taza Province
Beneficiary
FIDA
A
Project for the Development of Agricultural Sector Production in the Mountainous Areas of Al Haouz Province
5 80.00
0
Donor
Contribution
(in Dh million)
European Union
Union
Project Duration
(in years) Projects
141.68
141.68
7
Nature of Financing
World Bank
Bank
KFW
W
9
Donor Total Project
Cost (in
Dh million
PMH 3
3
Appendix 6 BANK OPERATIONS PORTFOLIO IN MOROCCO (Status, May 2012)
SECTEUR AGRICOLE 2.1 3.5 48,641,851 55,310,809 2,254,112 111,846,755 4.1% 17.3% 3.3%
1 Projet d'ap. tech. prom. jeunes entrepreneurs - DON PRI 12-janv.-12 4-May-12 4-May-12 30-juin-14 0.3 UC 497,000 497,000 497,000
2 Projet d'ap. au Prog. nat. d' eco. d'eau d'Irrig. (PNEEI) 14-déc.-09 04-mars-10 2-Jul-10 31-Dec-15 2.4 6.7 EUR 47,651,651 53,590,000 1,609,400 51,980,600 3.0% 17.0%
3Ass. Tech. progr. Protec. sauvegarde des oasis du Sud du Maroc
(POS) - DON PRI28-avr.-09 31-juil.-09 31-juil.-09 30-juin-13 3.1 3.1 UC 496,000 496,000 386,338 109,662 77.9% 60.0%
4 Appui tech. dév. Infrastr. d’irrigation - DON PRI 21-févr.-11 17-mars-11 17-mars-11 31-déc.-12 1.2 0.8 UC 494,200 494,200 158,834 335,366 32.1% 32.1%
SECTEUR TRANSPORTS 2.7 7.7 510,263,406 585,678,000 51,733,548 533,944,452 8.8% 17.4% 34.2%
5 2è phase Progr. Nation. de routes rurales (PNRR 2) 5-sept.-07 23-nov.-07 8-mars-08 31-déc.-13 4.7 6.2 EUR 41,754,428 45,000,000 45,000,000 0 100.0% 100.0%
6 3ème Projet aéroportuaire 16-avr.-09 8-mai-09 22-oct.-09 31-déc.-13 3.1 6.3 EUR 214,456,130 240,000,000 5,940,008 234,059,992 2.5% 11.0%
7 Réparation ouvrages 7 ports - DON PRI * 01-avr.-10 17-mars-11 17-Mar-11 31-août-12 2.1 11.7 UC 600,000 600,000 12,675 587,325 2.1% 100.0%
8 Projet d'augm. de capa. Ferrov. Tanger-Marrakech 17-déc.-10 17-mars-11 30-Jun-11 31-déc.-16 1.4 6.5 EUR 253,452,847 300,000,000 778528.02 299,221,472 0.3% 10.0%
SECTEUR ENERGIE 3.3 7.5 251,830,388 277,820,000 11,623,998 98,196,002 4.2% 11.5% 16.9%
9 Projet d' energie solaire de Ouarzazate 16-mai-12 EUR 150,000,000 168,000,000
10 Progr. déve. réseau transp. et réparti. élect. 02-déc.-09 11-déc.-09 29-Apr-10 31-déc.-14 2.5 4.9 EUR 101,830,388 109,820,000 11,623,998 98,196,002 10.6% 29.0%
SECTEUR SOCIAL 2.2 0.3 970,406 1,139,937 544,942 594,995 47.8% 20.6% 0.1%
11 Ass. tech. mise en place SIG & carte sanité - DON PRI 12-déc.-08 23-déc.-08 23-déc.-08 Annulation 3.4 0.4 UC 500,000 500,000 0 500,000 0.0% 0.0%
12 Appui strat. dével. enseig. Privés - DON PRI 11-mars-11 17-mars-11 17-mars-11 31-déc.-12 1.2 0.2 UC 470,406 470,406 470,406 0 100.0% 50.0%
SECTEUR EAU ET ASSAINISSEMENT 3.2 7.7 309,565,848 365,074,246 88,694,996 276,379,250 24.3% 42.0% 20.7%
13 Neuvième Projet d'AEPA 21-juil.-06 18-déc.-06 16-mai-07 30-juin-13 5.8 10.0 EUR 70,666,446 81,000,000 63,900,423 17,099,577 78.9% 90.0%
14 Dixième Projet d'AEP 16-nov.-08 26-déc.-08 17-juil.-09 31-déc.-13 3.5 8.1 EUR 30,702,510 33,840,000 11,247,016 22,592,984 33.2% 60.0%
15 Dixième Projet d'AEP 16-nov.-08 26-déc.-08 17-juil.-09 31-déc.-13 3.5 8.1 USD 34,540,816 53,340,000 12,918,748 40,421,252 24.2% 60.0%
16 Onzième Projet d'AEPA Rabat-Casa 12-mai-10 19-août-10 13-janv.-11 31-déc.-14 2.0 8.2 EUR 135,258,333 162,310,000 0 162,310,000 0.0% 12.0%
17 Onzième Projet d'AEPA Rabat-Casa 12-mai-10 19-août-10 13-janv.-11 31-déc.-14 2.0 8.2 USD 36,706,667 55,060,000 3,123,581 51,936,419 5.7% 12.0%
18 Projet recharge artificiel. nappe du Haouz - DON FAE ** 12-janv.-09 8-mai-09 8-mai-09 30-nov.-12 3.3 3.9 EUR 1,691,076 1,892,500 815,550 1,076,950 43.1% 100.0%
SECTEUR MULTISECTEUR 1.4 1.6 201,445,338 225,734,406 134,529,840 91,204,566 59.6% 99.6% 13.5%
19 Projet d'améliorat. du syst. de garantie - DON PRI 19-janv.-11 17-mars-11 17-mars-11 31-déc.-13 1.3 1.9 UC 464,988 464,988 159,388 305,600 34.3% 26.3%
20 Projet de renf. du contr. marché. fin. - DON PRI 13-déc.-10 17-mars-11 17-mars-11 31-déc.-12 1.4 3.1 UC 480,350 480,350 171,410 308,940 35.7% 30.0%
21 Projet de dévelop. du Secteur Financier II (PADESFI-II) 23-nov.-11 23-Nov-11 6-déc.-11 31-déc.-12 0.5 0.4 EUR 200,000,000 224,000,000 134,000,000 90,000,000 59.8% 100.0%
22 Appui inst. SG UMA ( Multinational) - DON PRI 30-avr.-09 28-mai-09 28-mai-09 30-déc.-12 3.0 0.9 UC 500,000 500,000 110,735 389,265 22.1% 100.0%
23 Statistical Capacity Building II 15-mars-11 UC 490,000
SECTEUR PRIVE 1.4 5.1 170,250,000 188,611,111 609,000 14,391,000 4.1% 3.0% 11.4%
24 Fond Argan pour le développement des infrast. 17-févr.-10 21-juil.-10 21-juil.-10 31-déc.-18 2.2 5.1 EUR 14,000,000 15,000,000 609,000 14,391,000 4.1% 3.0%
25 Prêt à l'Office Chérifien des Phosphates /ψ 29-juin-11 10-mai-12 10-mai-15 0.9 USD 156,250,000 250,000,000
Récapitulatif: Répartition sectorielle des opérations Approbations (millions EUR) Situation des décaissements
Montant Total du portefeuille
En Unités de compte 1,492,967,237
Prêts (15 projets) 1,487,770,217
Dons (10 projets) 5,197,020
En Euros 1,699,368,508
Actuel Proj. 2012
Montant Total des décaissements en Euros 289,990,436 521,550,838
Taux de décaissement 21.4% 30.7%
Montant moyen par prêt (en UC) 99,184,681
Delai moyen de mise en vigeur (mois) 5.0 Prêts 6.1 Dons 3.1Age moyen du portefeuille (an) 2.3 Prêts 2.6 Dons 2.1
Note: Les zones gisée correspondent à des opérations non encore en vigueur ( ψ): Projet non encore en vigueur et par conséquent non inclus dans la détermination du taux de décaissement global du portefeuille.
* PRI: Pays à revenu intermédiaire ** FAE : Facilité africaine de l'eau
Nom
breNom du Projet
Date
d'approbation
Date de
signature
Date de
mise en
vigueur
Date de
clôture
Age
moyen
projet
(an)
delai
mise en
vigeur
(mois)
en Unités de
compte
en monnaie du
prêt (total par
sect. en EUR)
ActuelProject.
2012
Monnaie
du prêt
Part
dans
le
portef
euille
Montant approuvé
Décaissement
cumulé en
monnaie du prêt
par projet / en
euro par
secteur
Annulatio
n en
monnaie
du prêt
Montant non
décaissé en
monnaie du prêt
par projet /en
EUR par secteur
Taux décaissements
cumulés (en %)
Agric Transp. Energ. Social Eau/ass. Multisect. Sect.privé
Moyenne
17% 17%11%
21%
42%
100%
3%
21%
4% 9% 4%
48%
24%
60%
4%
31%
Tx déc. prév. fin 2012 Tx de décais. mi-mai 2012
158
643 634
476
904
2008 2009 2010 2011 proj.2012
Agric3.3%
Transp34.2%
Energ16.9%
Social0.1%
Eau/as20.7%
Multisect.
13.5%
Privé 11.4%
AGRICULTURAL SECTOR 2.1 3.5 48,641,851 55,310,809 2,254,112 111,846,755 4.1% 17.3% 3.3% 1 Tech. Support to the Young Entre.Prom. Project MIC GRANT 12-Jan.-12 4-May-12 4-May-12 30- June -14 0.3 UC 497,000 497,000 497,000 2 Irrig. Water Saving Supp. Prog. (PNEEI) 14- Dec.-09 04- Mar - 2-Jul-10 31-Dec-15 2.4 6.7 EUR 47,651,651 53,590,000 1,609,400 51,980,600 3.0% 17.0% 3 Tech. Ass. to South Morocco Oasis Protec. and Con. Prog.
(POS) - MIC GRANT 28-Apr.-09 31-Jul.-09 31-Jul.-09 30- June -13 3.1 3.1 UC 496,000 496,000 386,338 109,662 77.9% 60.0% 4 Tech. Support to Infras. Dev - MIC GRANT 21- Feb.-11 17- Mar - 17-mars-11 31- Dec.-12 1.2 0.8 UC 494,200 494,200 158,834 335,366 32.1% 32.1%
TRANSPORT SECTOR 2.7 7.7 510,263,406 585,678,000 51,733,548 533,944,452 8.8% 17.4% 34.2% 5 2nd phase of Nat. Rural Roads Programme (PNRR 2) 5-Sept.-07 23-Nov.-07 8-Mar-08 31- Dec.-13 4.7 6.2 EUR 41,754,428 45,000,000 45,000,000 0 100.0% 100.0% 6 Third Airport Project 16-Apr.-09 8-May-09 22-Oct.-09 31- Dec.-13 3.1 6.3 EUR 214,456,130 240,000,000 5,940,008 234,059,992 2.5% 11.0% 7 Distribution of Struct. 7 ports - MIC GRANT * 01-Apr.-10 17-Mar-11 17-Mar-11 31-Aug-12 2.1 11.7 UC 600,000 600,000 12,675 587,325 2.1% 100.0% 8 Tanger-Marrakech Rail. Cap Dev. Project 17- Dec.-10 17- May -11 30-Jun-11 31- Dec.-16 1.4 6.5 EUR 253,452,847 300,000,000 778528.02 299,221,472 0.3% 10.0%
ENERGY SECTOR 3.3 7.5 251,830,388 277,820,000 11,623,998 98,196,002 4.2% 11.5% 16.9% 9 Ouarzazate Solar Energy Project 16- May -12 EUR 150,000,000 168,000,000
10 Electricity Transmission and Distr. Development Project 02-Dec.-09 11-Dec.-09 29-Apr-10 31- Dec.-14 2.5 4.9 EUR 101,830,388 109,820,000 11,623,998 98,196,002 10.6% 29.0% SOCIAL SECTOR 2.2 0.3 970,406 1,139,937 544,942 594,995 47.8% 20.6% 0.1%
11 Ass. tech. establishment SIG & health map - MIC GRANT 12- Dec.-08 23- Dec.-08 23- Dec.-08 Cancellation 3.4 0.4 UC 500,000 500,000 0 500,000 0.0% 0.0% 12 Appui strat. devel. enseig. Privés - MIC GRANT 11-Mar-11 17- Mar - 17-Mar-11 31- Dec.-12 1.2 0.2 UC 470,406 470,406 470,406 0 100.0% 50.0%
WATER AND SANITATION SECTOR 3.2 7.7 309,565,848 365,074,246 88,694,996 276,379,250 24.3% 42.0% 20.7% 13 Ninth DWSP
21-July.-06 18- Dec.-06 16- May -07 30-June-13 5.8 10.0 EUR 70,666,446 81,000,000 63,900,423 17,099,577 78.9% 90.0%
14 Second DWSP
16- Nov.-08 26- Dec.-08 17-Jul.-09 31- Dec.-13 3.5 8.1 EUR 30,702,510 33,840,000 11,247,016 22,592,984 33.2% 60.0% 15 Second DWSP 16- Nov.-08 26- Dec.-08 17-Jul.-09 31- Dec.-13 3.5 8.1 USD 34,540,816 53,340,000 12,918,748 40,421,252 24.2% 60.0% 16 Eleventh Rabat-Casa DWSP 12- May -10 19-Aug-10 13-Jan.-11 31- Dec.-14 2.0 8.2 EUR 135,258,333 162,310,000 0 162,310,000 0.0% 12.0% 17 Eleventh Rabat-Casa DWSP
12- May -10 19-Aug-10 13-Jan.-11 31- Dec.-14 2.0 8.2 USD 36,706,667 55,060,000 3,123,581 51,936,419 5.7% 12.0%
18 Haouz Artificial Groundwater Recharge Project- AWF GRANT ** 12-Jan.-09 8- May -09 8- May -09 30-Nov.-12 3.3 3.9 EUR 1,691,076 1,892,500 815,550 1,076,950 43.1% 100.0% MULTISECTOR 1.4 1.6 201,445,338 225,734,406 134,529,840 91,204,566 59.6% 99.6% 13.5%
19 Guarantee Syst. Improv. Project MIC GRANT 19-Jan.-11 17- Mar - 17-Mar-11 31- Dec.-13 1.3 1.9 UC 464,988 464,988 159,388 305,600 34.3% 26.3% 20 Fin. Market Dev. Reinforcement Project MIC GRANT 13- Dec.-10 17- Mar - 17-Mar-11 31- Dec.-12 1.4 3.1 UC 480,350 480,350 171,410 308,940 35.7% 30.0% 21 Financial Sector Development Project II (PADESFI-II) 23- Nov.-11 23-Nov-11 6- Dec.-11 31- Dec.-12 0.5 0.4 EUR 200,000,000 224,000,000 134,000,000 90,000,000 59.8% 100.0% 22 Instit. supp SG UMA ( Multinational) - MIC GRANT 30-Apr.-09 28-May-09 28- May -09 30- Dec.-12 3.0 0.9 UC 500,000 500,000 110,735 389,265 22.1% 100.0% 23 Statistical Capacity Building II 15-Mar-11 UC 490,000
PRIVATE SECTOR 1.4 5.1 170,250,000 188,611,111 609,000 14,391,000 4.1% 3.0% 11.4% 24 Argan infrastruc. Development Fund.
17-Feb.-10 21-Jul.-10 21-Jul.-10 31- Dec.-18 2.2 5.1 EUR 14,000,000 15,000,000 609,000 14,391,000 4.1% 3.0%
25 Loan to Cherifian Phosphate Authority /?
29- June -11 10- May -12 10-May-15 0.9 USD 156,250,000 250,000,000
Summary: Distribution of operations by sector Approvals (EUR million Status of disbursements Portfolio amount In UA 1,492,967,237 Loans (15 projects) 1,487,770,217 Grants (10 projects) 5,197,020 In EUR 1,699,368,508
Actuel Proj. 2012 Total amount of disbursements in EUR 289,990,436 521,550,838 Disbursement rate 21.4% 30.7% Average amount per loan (in UA) 99,184,681 Average effectiveness time frame (month) 5.0 Loans 6.1 Grants 3.1 Average portfolio age (year) 2.3 Loans 2.6 Grants 2.1 Note: Grey areas correspond to operations that are not yet in force
( ?): Project not yet operational and therefore not included in the calculation of the overall portfolio disbursement rate * MIC: Middle-Income Countries ** AWF : African Water Facility
Number
Project Name Approval Date
Signature Date
Effectiveness Date
Closure Date
Average Projec
Age (Year)
Effect. Deadline (Month
in UA
in loan currency (Total by Sect. in EUR)
Actuel Project. 2012
Loan cur.
Share inin In
in
the Portf euille
Approved amount Accrued
disb. in loan cur.
by project /in EUR by sector
Cancel. in
loan currency
Undisb. amount in
loan cur by project /in
EUR by sector
Disbursement tt Rate
Cumulated
Agric Transp. Energ. Social Eau/ass. Multisect. Priv. Sect.
Average
17% 17% 11% 21%
42%
100%
3% 21%
4% 9% 4%
48%
24%
60%
4%
31%
Est. dis. rate at end-2012 Dis. rate in mid-May 2012
158
643 634 476
904
2008 2009 2010 2011 proj. 2012
Agric 3.3%
Transp 34.2%
Energ 16.9% Social
0.1%
Water/San. 20.7%
Multis ect.
13.5%
Private 11.4%