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Docw~ent or

The World Bank

FOR OFFICIAL USE ONLY

Re"ptNo. 8687

PROJECT COMPLETION REPORT

KINGDOM OF MOROCCO

SECOND URBAN DEVELOPMENT PROJECT(LOAN 1944-MOR)

MAY 23, 1990

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Infrastructure Operations DivisionCountry Department IIEurope, Middle East and North Africa Region

\TThb document has a restiieted disribtion and may be sed by recipients only in te performance ofthder offical dudes. 'Jtl cotents may not otherwise be sckded witout World Bank authorization.

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CURRENCY EQU .ALEt\ .

G*rz*Tncy UWit -broccan Dirham (DR) 100 Centimes

Exchange rate at Appraisal: US$ 1 DH 3.80Exchange rate in June 1985. US$ 1 DH 10.30Exchange rate at Closing Date:1US$ 1 DH 8.29

GlO0SARY °F ACRONYMS - -

ANLHI -"Agence Nationale de lutte contre 1'habitat insalubreBCP nBanque centrale populairelBP "Banque popula1re.BNO ~ -Bordj Moulay OmarDRH ,D6l6gation Rdgionale de 1'HabitatERAC wEtablissement r6gional -d' amxnagement et de construction"GOX! Government of MoroccoHBM "Habitation bon march6" ?MOH Ministry of Housing -ODI "Office pour le developpement industriel"RADEK M;lekes Public Utility Agency .

RAK Kenitra Public Utility AgencySB Sidi Bba .SGMA "Sodidt6 g6r4e d; manibre autonome"

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January 1 - Pecembet 31

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'~~~~~~~f PbnA IW OMYTHE WORtLD BANK O

Washngtn. D.C. 20633U.SA.

1ke oG Og*tgU*GWWIUOpiaiw. I*.Stm

May 23, 1990

MEMODM TO TIE EXECUTIVE DIRECTORS AND THE PRESIDENT

SUBJECT: Projeet Completion *aport on the Kingdom of Morocco -

Seind Urban Deve oment Proiect (Loan 1944-MOR)

Attached, for information, is a copy of a report .ntitled "ProjectCompletion Report on the Kingdom of Morocco - Second Urban DevelopmentProject (Loan 1944-NOR)0 prepared by the Europe Middle East and NorthAfricaERegional Office\ vith Part II of the report contributed by theBorrower. No audit of this project has been made by the Operat$onsEvaluation Department at this time.

Attachment

Thi iloument km a 'dikWiWbuftb and smay be used by re,pients only in *e |forusawof their ofcil dutimusdnts may not herw be dbeosd without Worl a *

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V ~~~~FOR OFF ICIAL USE ONLY

KIOOIOF MOROC00

SECOND UAN DELOPMT POJECT (LOM 1944-J(* \\

PROJECT C!,ueutwi-j' MR

oiw aawai -"~ ~ ~~~AL OF CCwON TEN -

.11-aCE . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .

PART I: PE AM S . .S..C.IV..1. . .

2. Y ... . . ... . . . . . . . .1. . i3. rojectnd Desrintion . . . . . . . . . . . . . 2

The project objectives . . . . . . . . . . . . ... . . . . . 2The five project components . . . . . . . . . . ... . . . . 2

4. Project esults. .. . . . . . . . . 3

Project management . . . . . . . . . . . . . . . . . . . . .

Loan disbursement . . . . . . . . . . . . . . 4Cost recovery .. . . . . . . . . ... . . . . . . . . . . . . 5Construction finaneing . . . . . . . . . . . . 6 . . . .-- 6

Employment Generation Program . . . . . . . . . . . . . . . . 6Municipal gement . .. . . . . . . . . . . .7 . . . .

Replicability of the Project . . . . . . . . . . . . . . . . 7Project Sustainability .. 8

5. ;lsn drn fxa_rom the_nr1e2 . . . . . . . . . . . . . . . 8Unused building material loan. .°.Rote of the core units .. ........ . . . ....... 9Difficulty in coordinating project components . . . . . . . . 9

6 .i. Rpcoumtertions . . . . . . .. . . . . . ... . . . . . . . 9

PART II: PROJECT R ERM TE BORROWER'S EGIE . . . . . . . . . 1E)COMPLETION REPORT OF THE URBAN DEVELOPMENT PROJECT OF MEKNES . . . 11

Introduction. . 13I. Project cOntens .. 14

A. Rehabilitation program . . . ... . . . . . . . . 14B. Sites and services piogram . . . . . . . . . . 8C. Job creation program . . . . . . . . .21

D. Municipal service improvement program . . . . . . 21II. Financin and project implementation . . . . . . . . . 22

A. Estimated cost . 22

B. Financing .23C. Implementation schedule . . ... . . . . . . . . . 23D. Disbursements . ... . . . . . . . . . . . . ... . 24

III. Po t orgnition and aemt . . . . . . . 25IV. Financial asDes. . . . . .. . . . 27

A. Cos\t recovery .27B. Sitb.ation of allocations and loan conditions . 27

Q onlusign . . . . . . . . . . . . . ....................................3.. gzLg1lagi.g.....30

This docuent has a uustuited dbibuton and may be used by recints onl in te poformaeof the official dutisLIts cntents may %ot otherwise be disosed without World ank authorizton.

EVALUATION REPORT OF THE URBAN DEVELOPMENT PROJECT... .. . . . . . . . ., . 32

Project Characteristics . . . . . . 32A. Rehabilization . . . . . ... . . . . , . . . . . 32B. Sites and Services . . . . . . . . . . . . . 32C. . Development of Business Property . . . . . . 33\

B8atc Data.. . .*.............. 33The \operatio's implementation . . . . . . . . . . . . . . . 33The drawbacks\of the project .... ...... . . . . .. 34The present cost recovery ..... . . . .. ....... . 35

PARTIII:STATISTICALINFOM.ION .. . ..... .361. Related-Bank Jans andiorCredit . . . . . . . . . . .. . . 372. Project T$metable . . . ... . . . . . . . . . . . . . . . . 38\ 3. Eoan Dis s .... . . 394. Proiect imglementation .... 415. Proiects costs and Financig.. ... 42

A. ProSects costs.... 42i) Pro3ect Costs ln '000ooo . . . . . . . . . . . . . . 42ii) Prolect Cost8 in US 'OQQ . . . . . . . . . . . . . 43

B. ProJect Financing. . . . . . . . .. . ... 446. Project Results . . . .. . . . . . . . . . . .44

A.DirectBenefits ........ ....... 44B. Economic Impact .. .45C. Studin.....45

7. tatw ofCenant ....... . 468. Use-of Bank Resoure. .... 47

A. safaIs, Is.. ... *... 473. Miss-ios.......47

'V\

'INGDOK OF MROCCO

,-' SECON URBA E L PROJZC¶! (LOAN 1944,.(0')

PROJECT CONPLETION REPORT

PREACE

This is the Project Completion Report (PCR) for the Second UrbanDevelopment Project in Morocco, for which Loan 1944-NOR in the amount of US$36.0million was approved on January 22, 1981. The loan was closed on July 31, 1988,two years behind schedule. Its amount was reduced to US$9.8 million, which werefully disbursed; the last disbursement was on February 10, 1989.

The PCR was jointly prepared by the Infrastructure Operations Divisionof the Second Country Department of the Europe, Middle East and North AfricaRegional Office (Preface, Evaluation Summary, Parts I and III), and the Borrower(Part II).

Preparation of this PCM is based , inter alia, on the Staff AppraisalReport; the Loan Agreement; supervision reports; correspondence between the Bankand the Borrower; internal Bank Memoranda; and the findings of PCR mission heldin June 1989.

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, $p~~~NODONQ XOFMROCCO

SECOND pRlND I~NE PROJCT (OA 1944-r)

PROJECT COMAPIETION RPR

1. The Second Urban Development Project achieved the objective ofimproving the housing conditions of 160,000 slum inhabitants in Kenitra andMeknes. It also brought broader housing issues to the forefront and helped the

- Kingdom of Morocco develop a new housing policy. After reviewing the projectobjectives, this report describea the implementation process, whereby specialattent,on is given to In8titutional, as well as cost-recovery aspects. It'also-draws lessons on project.sustainability and GON's housing policy.

2. Project objectives (paras. 3.1-3.24 were (a) the improvement of thehousing conditions of a total population of 160,00 low-income people in Neknesand Kenitra through the uigrading and, the construction of sites and services;(b) the\deve1opment of small-scale e onomic activities to offer job opportunitieoto local dwellers; and (c) the impi ovement of Kenitra's and Neknes! municipalmanagement, aiming at enabling the municipalities to deal with th. new project-born districts.

3. The assessment of the overall project performance indicates that: (a)the physical objectives of rebabilitating 130 ha tf slum ares and producing6,400 servZced plots were essentially met; (b) 289 sites for small and mediumenterprises have \been developed and commercialized; (c) housing construction wascarried out only'., with the beneficiaries' own resources rather than with the

-project provided credit facilities; (d) fhe implementation of cost recov ymechanisms Was behind schedule; and (a) the development of municipal serviceshas not yet been completed. Moreover, as a result of the incomplete municipalcomponent, non use of\ credit facilities and shortage of counterpart funds,project cost was 25X less than initially envisaged. This, combined withdepreciation of the US dollar and pobr management of Bank withdrawals, retultedin the use of only one thir4 or $9.8 million of the original loan amount (US$36million)\(paras. 4.6-4.8). \

4. During the implementation, the organizational arrangements definedduring project preparation were successful.' However,-whereas the local teamsof the Ministry of Housing efficiently managed the physical and social aspects,other factors, such as 'the Municipalities and the local Credit Unions (hAnAui-ftalaire, or BP) were only marginally iuvolved (paras. 4.2-4.5). This situationhad a negative impact on infrastructure maintenance and cost recovery. Moreover,the Sank reorganization and other chang4s in task management considerablyundercut the supervision effort.

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5. While cost recovery (paras. 4.9-4.14 of the 81um upgrading, and sitesand services componnts have been successful insofar as the 10X dovn paymentsfrom beneficiaries are concerned, monthly dnstalments hare not started yet inKenitra and repayments are poor in Neknes. This is due to dhe low colmitmentof BPs and their collection practices, which failed to take into acount theparticular behavioi of slum inhabitants. By the same 'token, BPs have notsuceeded in proviing construction material loans (para. 4.6) to slum dwellers;and, he beneficiaries of serviced plots, because of their inability to reach outto such an unconventional clientele, as well as\ their rigid mortgage regulations.It is worth noting that, although these financing facilities have not been used,bhquslng construction is progressing rather fast on allocated plots, Iwhich showsthe' creditworthin4ss of beneficiaries.

6. Project sus\tainability (paras. 4.26-4.28) is being jeopardized in twoways: -

a. infrastructure--ias been dam4ged by the high, level ofconstruction' activity and 'needs rehabilitation andmaintenange from the municipal services, which will requireenforcement of local taxation.

b. Through the, preject, what, were once poorly serviced A districts have become new cit;ies,\ but still city-levelk security, education and health facilities, which fall ;\iner

the purview of the Centrtl Government, are lagging behindschedule. .

7. Ti housing policy of GON benefitted from the ptL_iect and new slumupgrading projects are underway in various cities (paras. 4.24-4.25). Theimplementing teams were trained, either through the first urbaei developmentproject or-through this one. The costs are to be recovered from beneficiaries, \who lack access to long-term credit. Even though slum households have provedtheir creditworthin"ss by the construction activity on their plots, they arestill'considered uncreditworthy by banks. Lending to them contitues to be anissue. X

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- DM OP MOROCCO

ECOND URBAN DEVELOPHENT PROJECT (LOAN 1944-MOR)

PROJECT COMPLETION REPORT

PART Is PROJECT REVIEW FROM TEE BANK'S PERSPECTIVE

1. Project Identity

Project Name: Second Urban Development ProjectLoan No.: 1944-MORRVP Unit: EMACountry: MoroccoSector: Urban Development

2.1 When the project was launched in 1980, 25X of the Moroccan urbanpopulation lived in squatter sottlements and the most affordable government-funded housing units were beyond reach of 50X of the urban population. Urbanpolicy objectives in Morocco were:

i) to rehabilitate the squatter sqttlements, and providethe sites and services for low-income housing;

li) to mobilize the saving capacities of t~ie households tobe relocated and promote an efficient intervention ofthe municipal agencies concerned in the provision ofurban serv*ces to newly developed areas.

This strategy had already been successfully applied in the Rabat UrbahnDevelopment Project (Loan 1528-NOR).

2.2 To implement its urban policy, the Government of Morocco relied on \theregional de3lgations of the ffinistry bf Housing (MOB). Seven regiotaaldevelopment and construction agencies (ERACs), established in 1974, assisted KOHin this task. More recently, the Government has entrusted the Ministry ofInterior with the responsibility for urban planning, and has created a newagency, Agence Nationale de Lutte Cont*e l'Habitat Insalubre (ANLHI), to improveservices in slum areas and develop low-cost housing for slum dwellers. Financingof low-income housing is provided by aue X2Maare (BP) and Credit Inmiobilier-et Hgtalier (CIH) through a low- and moderate-cost housing program referred toas .,1itabtion Bon-Magh6 JHBM)-.

2.3 At project start up, the macroeconomic context of Morocco wasgharacterized by:

rapid dvmographic growth (exceeding 3X p.a.) and urbangrowth (4.6X p.a.);

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c \ ii) a heavy country indebtedness resulting from ambitiowuslnvestme t program, which started in 1975 and werefollowed by' a declint of Moroccan export prices, inparticular phosphate in 1977, and a quick increase ofoil iEport price in 1979; and

iii) an adjustment program launched in 1978, thichcontributed to reducing Inflation from 12.52 p.a.in 1977 to 8.31 in 1979, the balance-of-paymentsdeficit from 222 of GNP in 1977 to 141 ii)l978, andthe public defici$'from 17X to 11 of GNP.

The above m,acroeconomic context constantly affected project implementation. D"to fiscal etisis and contraction of social sector public expenditures, theprogram suffered from lack of adequate counterpart funds..

2.4 The project was supposed to contribite to macroeconomic policy byenhancing the mobilization 4f low-income households' savings for housing and bycreating jobs through providing serviced land for business activities. IIaddition, the municipal service component was aimed at improving the.sffici.nciof public expenditures.

2.5 The project was designed as a larger-scale replication of the RabatUrUan Project and took.into account its implementation troubles. The conceptof sluSI upgrading and sites a-nd services had beetr successfully used during thefirst project and was repeated in the project. Because poor management hadhampered the implementation of the first project, project appraisal focussedheavily upon adequate local management, which became a condition ofdisbursement.

3. -Ptiect Objectives and Ds fiution

3.1 The project objectives were to:

i) upgrade housing, Improve basic services, and createemployment opportunities for the low-income populationliving in.the slums of Bordj Koula* Omar, Ain Chebik,and Sidi Baba in Meknes, Saknia, Bouchtyne, asid Path inKenitra; and

ii) improve municipal services of )eknes and Kenitra.

The five project compononts were the:

i) Slum Upgrading Program. This component included provision ofsecure land tenure an4 of basic off- and on-siteinfrastructure lto the 81,500 slum residents of Meknes andKenitra;

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ii) Siteo and Serviei Programi. *1ai component included the. provision of 6,400 serviced plots LnVXeknes'and Kenitra; loans

V' l" x i -for the acquLsit*ion of building materials were also to beprovided; '

-iii) Empgoymuent Generation Program. Egch project city was to beprovided 'with' serviced ,led for small-scale business'activitils supporting 2,270 jobs;'

iv) Itprovement of Municipal Services. This component includedprovision of equipment -and tecbnieal assistance to developounicipal services in the cities of' Meknes and Kenitra; and

v) Studies for the' preparation of new urban development projects.

.4. Projec,t esuXlts 4..

4,l Although physical implementation was qulte successful,' cst recoveryand Jtnfrastructure maintenance started slowly and must now be stren&thpned. Inthese areas, useful lessons are to be) drawn for ihe fut6rb of this project asWall-as- for urban policy. After a general review of project management, thissection deals with tho slum upgradLng and sites and services programs, focussingon cost recovery and housing construction flnancing. It also reviews theemployment generation, and municipal services components and co cludes w,ith therellicability and sustainability of this project. " -

Project manae8ment

4.2 Although the institutional set-up, as defined in the Loan Agreement,was successful, finAncial management was too weak. This resuited in slow loandisbursement. The Project Technica4 Units and the Housing Buteaus of theProvinci4 Housing Delegations (DRHs) of Kenitra and Meknes efficiently managedthe sites and services and the'slum upgrading worls, as well as plot assignmentand self-help constructLon follow-up. -The Runictjlity of Kenitra haschad themunicipal technical center built and has been operating it since 1986. This:municipality is curreutly preparing its Sewerage Master Plan, and i8 taking overthe sewerage networks of Saknla and Bouchtyna,. The Municipality of Mek,nes iscurrently building its municlpal technical center and i's taking over thesewerage ne vorks of Sidi Baba and Bordj Moulay Omar; this municipality hastaken a large part in plot assignment in slum-upgrading areas.

4.3 The Provincial Project Steering Committees of Kenitra and Meknes weresuccessful *n their effo*ts to coordinate the impleme a ng agencies. These,committees were supposed to be assisted by permaneng project coordination units.However, they considered that the work of the. 4p: ent units would overlap withthat of the DRHs; onsequently, these units aie never put into servLce. Theresa1ts wer* weak financial management oi, the project,ka majtr delay in 'the0 0oject itlplementation. and slow- loan disbursement, which were further

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aggravated by external factors,-such as budgetary difficulties of GON, as wellas a rapid appreciation of US currency (+1502 between 1980 and 1984).

4.4 The'appraisal report had established that the municipalities wouldparticipate in the developmei,t of the infrastructute for sites and services andslum-upgraditig areas, Althou h the Project Technical Units were the executingagencies. Their participation has been marginal and hap not prepared them fortaking over the infrastructure. The resultant delay in Infrastructure transferhas adversely affected the periodic maintenance.

4.5 BCP did not fulfill its role either.' Acting as a cashier, it cashedthe down payments that were calculated by the Housing Bureaus for the sale ofserviced plots but did not lend to householdsJfor the acquisition of buildingmaterials as provided in the Loan Agreement. BCP has started receiving monthlyinstallments "from Meknes beneficiartes but does not 'manage the beneficiaryaccounts and does not get the Xupporting docum,ents required for theredisbursementv oi these funds to the Treasury. A clearer definition of BCP'srole at the beginning of the project, including a better remuneration,for itsservices and possible san,tions for non-collection of dues, would havecontributed to a more effident operation,

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Loan disbursement

4.6 Although ,most compontnts were, completed 'during the projfectimplementation perio#, final loan'"disbutsement represgnts only 27X of theinitial loan .emount. This results mainly from the rapid appreciation of,the USW,-<-dollar versus tb&"dirbam during project inplementatton. The a-,erage exchange -ate for disbqrsement was 2.3 times as high as the' appraisal exchange rate;

i.e., DH 8.78 instead of DH 3.8 for USO l.lBecause the entire disbursement wasmade against local expenses, its dollar amount was accordingly, reduced.C Loanamount,was reduced by #11 millio-a in 1985, by $5 million in 1986, and by $5-million in 1987. Finally by *he loan account closing date (Februaryt10, 1989),65.5 million remained u*disbursed. i'

4.7 Also contributing to cost- underruns were cancellation of somecomponents. For instance, the building materials component was Rot implewentednor was funding for the preparation of new projects made from this loan. Thisreduced the amoynt to be disbursed in dirhams by 17%.

4.8 D*ring implementation, difficulties,related mainly to the scarcity ofbudgetary resources led to,a reduction of the originally prpjected disbursementby,,another 20X in dirhams. Because the project was inadequately funded by GNM,the project management delayed its payments to contractors and reduced componentscope. In 1985, the project became eligible'forlthe Special Action Proam and

sthe -i-bursement 'perentage was raised from 15% , to 75- for civil works;'mreo-'er, the closing date was postponed to July 31, 1987, then to July'-3i,1988.' Although these measures alleviated the project's financial difficulties,the redctwtop of component scope and the fact that such components as.the Meknesmunicipal center and the Kenitra sewerage master-plan were not completed by the

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closing date resulted accordingly in reducing i6e l1vel of locil costs financedby the Bank loan re1ative to'local costs otherwise eligible for disbursement.

Cost recovery

4.9 '; The cost recovery system for the sites and services and for theupgrading operations aims at recovering the total cost of land acquisition andon-site equipment. Its implementation indicates a high rate of unpaid debts,which is caused more by an inappropriate organization than by the lack ofbeneficiary' creditworthiness.

4.10 V In Kenitra and Meknes, the sale price for plots and core units(cel1ules enbryonnaireI) corresponds to the actual expenditures., In thecalculation of this price, the'off-site infrastructure costs (financed with themunicipal buidgets), program managpment costs for the Housing Delegation, and thefinancial cost, have been omitted, even though there i\ a margin that couldcover a large portion ~f these costs. The total cost for land acquisition anddevelopment is estim#ted at DU 89 million for \Kenitra and DH'159 milliotk forMeknes '(including operating costs for the Housing Delegation, estiiRated at,51of the infrastructure 'costs and the financial cost, estimated at two yearvInterest on thk total expenditure). The total sales price is DH 87 million inKenitra and DH 162 million in Neknes.

4.11 The recovery should ,have been done by BPs within a framework,including a 10% down .ayment iat plot assignment and the payment of theoutstanding balance on the standard HBM conditions, (i.e. interest at 7X p,a. \\including a 1X spread for BP, maturity of 20 years). In Kenitr&, down paymentsof 10 have been',requested, 161 of which concern recently allodated plots andhave set to be received. The down payments requested in Meknes amount to DH1,500 (reprea\enting 121 of the sales price)\in thie slum upgrading program andDH 6,009 (representing 251 of the sales price) for the core units in the sitesn"d services progra^. These have been regularly collected.

4.12. The collection of the monthly installments\has been less successful.In' Meknes, BCP starts" co-lectingn monthly installments when the plot isallocated; the management of the b4neficiaries' accounti is handled'by the DRH.Because the delegation has been unable to follow-,up closely on these operations,for which it does not have the means, the rate\of unpaid debts is relatively.high. The collectidn of monthly installments has not oven started in Kenitra, \'lthough the first plots were allocated in 1984. In both cases it is necessary'tb straighten ott the situation before tb size of the u aid amounts will maleany recovery imp~ossible. -'

4.13 'The beneficiaries' repayment capacity is puat in a conspicuous positionby thip importance of. new conatruption that has iaken place\during the past two,years o' the sites, e ven though the loans for the acquisition 'of building'materials have not been implemented. Numerous.two-storeykhouseb have appeared,which represent an investment of several thousand dirhams per square' miter.Beneficiaries' income from renting or selling part of 'the houses or plotsenhance this repayment capacity. \ , .

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4.14 While off-site infrastructure has been financed from the municipalbudget, the exemption of the nremier 4tablissement tax prevents municipalitiesfrom recovering the expenditure from the beneficiaries. The maintenance ofi thestreet networks and sewerage systems and the garbage collection are themunicipalities' responsibility. -Their costs are usuall3 recovered ithrough\resideits' taxes, which have yet to be implemented because lUnd titles have notbeen issued to the beneficiaries.

4.15 " Concerning business activities, plots buyers have had to pay,installments while infrastqucture works were going on. Even though buyers didnot benefit from loans beeause BPs have not implemented them as originallyplanned (801 of the purchase price at 101 interest for a 10-year period), plotallocations and their payments to DRH are being made under normal conditions.

Construction financin ' '

4.16 The constructLon material loans that have been fo\,eseen in the LoanAgreement have not been implemented by BCP. The arguments put forward are:

a) land securities and mortgage guarantees do. not exist;

k b) househoxlds are uncreditworthy, because they have no regularincome; \and

c) the age, of some \beneficiaries does not conform with HBNregulatizns (i.e. the reinbursepent of a loan has to becompleted upon reaching the age of'61).

Even though such loans do not exist, the construction on the plots advances ata fast pace\ This leads to believe that in addition to the shove reIssons, BCPhas been reluct'Snt to lend because of the' high cost of 'reaching to andcollecting fiom the envisaged beneficiaries. This was likely caused by theiimni d remuneration for its services agreed upon with the Government. -

Employment Genekation program I

4.17 In Kenitra, 261 plots (with an average area of 320 a@) were developeaand sold to small-scale enterprises.\ One-third of them are being cons ctdind entail such activiti4s as tapestry-making, boiler-making, and the productiOnof concrett blocks. In Meknes, 28 plots (with~ an average area of 1000 n') havebeep developed. Although it was initially plsained, ODI, *hich was supposed topromote industrial development in the project areas, did not take a part in thiiprograuR. However, this has not had any negative effects on t~he iwlementationof this\component.

\4.19 Services have, sti)l to be made available for the urban\comimunity ofSaknia, whose population ranges from 60,000 to 80,000 inhabitants. It has beenagreed to reserve plots alotig the main streets. Due\to the unavailabili#y ofland in Bordj Noulay Omar, the same procedure could not be used.

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\%.19 InVrastructure works and plot development activities have contributedto creating job opportunitites. The transformation of slums into well-servicedurban districts vith good-quality houses is now contributing to theestablishment of -business"t and ser\#ice activities.

X xunicipal Nanagement

4.20 The municipal \technical'center of Kenitra has bee,n operating since1986. Its establishient\\apd the acquisition of material for garbage collectionand the maintenance of the sewerage systems have improved the organizat.on ofthe municipal technical services and helped them'make a more efficient ase ofthe rolling stock. In keknes, the construction of the municipal technicalcenter, which should have been financed by the Bank loan, could not beencompleted due to procurement delays. Completion of the remaining work withf1pancing from the Municipality is planned.

4.21 The street networks and sewerage systems of Saknia, S4di Saba, andBordj Moulay Omar have been seriously daaged by the' construction works-- andSeveral years lack of maintenance, caused by their late transfer from themunicipalities. Although. the, Municipality of Kenitra is'inadequately equippedto manage the sewerage network and especiafily. the electromechanical equipmentof the pump-house, the transfer of the dtainage system to RAK, which was\envisaged in 1980, has noli-yet been performed.

4.:2 The Sewerage Master Plan for'Kenitra, whtch bad been postponed for alevel of the last four years, finally started in 1987, and is almost couplete.Due \to the high level of the water table, it proposes a unitary watertightnetwork with supple joints. \To carry out this option, it will be necessary torehabilitate the Saknia-Bouch\tne'sewerage network. . . \

* 4.23 In Mekries, a study on the organization of the accounting proceduresanJ the improvement of collections has been carried out -but fts recommendations

,have not yet been applied. The computerization of the Municipality's accountingsvstem is under way. . ' \

Replicability of the Project

4\.4 Following up on thp First, Ui*an Development Project (Rabtt), thisproject has greatly striength# 'thfMoroccan approgah to adre4sing the shortage,of housing for the low-income populaticn. Through both projects. teams werecreated and are operational. Informal housing development is now recognized asa \proper ans*er to the housing needs of iow-income population. Adjustedstandards for the rehai4litation of these neighborhoods have been designed andare implemented.. The use of householdsI savings for housing construction hasproduce# dramatic results as soon as the street networks and sewerage ,.ystemnwere upgraded and land tenure legally establis4ed.

4.25 On these bases, two pto'jects. in Kenibra, Souk es Sebt and OuledOujie)h, are under preparation with ANLMI. They\include 3,400 plots (2,200'ar~d1,200) and will allow for the gradual reduction of these two slum areas and of

N 'i N

some smaller disseminated slum areas. Siilar projects are being prepared inMeknes. These projects d4o not ptovide for loans to buyers. However, such loanswill b6eomz more. and more necessary as lower-income ho4seholds, as additionalresources, such as the sale .or the renting of part of a dwelling, become moredifficult to mobilize.

Project Sustainabl3ity

4.26 \ The smooth development of the slum upgrading and sites and.servicesareas requires:

i) an efficient management of the maintenance of the streetnetworks and the sewerage systems and

ii)\ the provision of urban services adjusted to the population ofthe districts (60,000.\to 80,000 in Saknia and Bordj MoulayOmar).

4.27 The services, which have been built up under the proJect, have been'mpaired by the housing construction works and inadequate miaintenance. Theirbehabilitation is necessary; this reha6tUitationas well as routine maintenance

should be financed through the municipal taxes that are not being collected.

4.28 Not all ihe public services and corresponding infrastructure foreseenat project appraisal have been provided. Schools in Kenitra and police stationsit both cities have yet to be planned.

5i sOns &aU from the oroiect

v.l Although the project is not yet completed and project benefits may nothave fully,surfaced, lessins can already be drawn~ fromn the differences betweenthe definiiion of the project at appraisal and its actual implementation. Theserelate to: (a) the unased building material loans; (l the role of the coreunits; and- () the 'difficulty in coordinating project components.

5.2 Uustd building material loans. Lending to low-income househalds iscostly and requires' specific skills and arrangements. Although low-incomehouseholds have demonstrated their cred4tworthiness through an impressiveconstruction activity on their plots, they generally do not meet the criteriaset by mortgage lender,. Moreover, because loan amountp are small, the cost ofadministering them is very high; this makes this type of lending not attractiveto financlal institutions. The above considerations hin;r using banks for thistype of Lending. Alternative solutions to promote family and communityfinancial assistance should be sought. However, it is noteworthy that, althoughthe building material loan c mponent has not yet been implemented, constructionactivity1is already impressive; consequentl) a'project concentrating only onland tenure security and plot servicing is fully justifiable. \

V~~~~~

9

5.3 Role of te core nit. The conept sevced plots wLtha core uiLt, including.a basic room with toilet facilities, was developed to

yensure sminimum habitable space to the poorest plot benificiaries-and lot them-build theirwboue at whatever pace hey could affrd financially.The core units, tomver, have been less w eful than expected at. appraisl.Whil'8 Saknia's bineficiaries took advantage of them for furthe* housingcotrucflono, in Meknes nothing but foundatiin was kept from core units at thestart of construction. Thi8 suggeitt that simple foundations provide anadequate start for housing construction. Moreover, dq~e to construction patternsand standards widely spread among contractors, housing construction homogeneityis quite sufficient. \

5.4 Dtfficulty In coordinating project _omponents. Coordination amongDRHs, the municipalities and the technical ministri)s proved difficlt duringproject implementation. This did not produce negative effects so far as schoolsan. health facilities were conceTned, although some facilities are yet to bebuitt.. However, because the municipalities will ultimately be in cbarge ofinfrastructure maintenance, better coordination is ndeded.

6. .

6.1 For the successful completion of hc projett and the achievemenpt ofits objectlves, the COX should:

i? accelerate completion of the land acquisition by GOI;

Li) establish a task force within BCP to recove; the artears inmmonthly installments and set up an appropriate remuneration;

iii) review the procedures for the provision of constructionmaterial loans to thie plot beneficiaries who. still have to

i , construct their houses;

- - -iv) - previdepibic equ puont requifred for the functioning of the\\now housing districts (school in Saknia, in particula*);

\ \.v) finance the completion of the civil works (municipal technical

center of Meknes, street networks and sewerage systems inMeknes); and

vi) introduce a taxation polict geared to financing infrastructure\maintenance in the new disitricts.

* \

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KIIGDOOWNORO; \

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REGXQlUL llOt:NG 0EOl O E8-DlS198\ N

iwriTIX IXOT QFT1§41 DVICLT CtOF

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Table of Contents\.

Introduction

Presentation of the Site

I. Project Contents

A) Rehabilitation ProgramB) Sites and Service' Prograi C) Job CreatiQn Prog*am

Improvement of i'Mnicipal Services

U1. Financial Structure and Proj ct Execution

A)' Cost Forecast\ B) Financing

C) )Implementatidn ScheduleD) Disbursements

III. Organization and Management of the Project

-IV. Financial Aspects oi the Project

A) . ot' "Recovery -

B) State of Allocations and Loan Cq~nditionsC) Price DeterminatLon

Conclusion

Attachment'

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* \ 5 A~~~~~~~~~~\ =.

K \\ - ~~~~~~~~13-\

\ Erolect C96iition Report

Being aware qf the deficiencies in the low-cost housing program, thepublic authorities adoted a new integrated housing strategy at the end of, the1970s. This strategy atms at upgrading the slum and integrating it into theurban structure in order to enable the target population to access basic pu41icservices, benefit from the social services, and improve its income.

The 1rban Development Project of Meknes, which is a part of this newstrategy, has not yet been completed, therefore an evaluation of its impact ispremature. However, it is appropriate to examine and report on the extent towhich th Project orientatLon and impetus in its present magnitude satisfy thedefined objectives.

According to 1979 statistics, which were used as the basis for thepreparatory work of the Project,, 20X of the city's 360,000 inhabitants live inthe slum area.

In 1981, the delegapion )conducted a household iurvey in Bordj MoulayOmar (BMO) and Sidl Baba, tlhe two areas targeted by the Project. Table 1indicates the demographic results of, \he survey.

Table I: Demoaranhy ofMO and Sidi Baba

\ l ~~~~~~~~~~~AverageNumber of Number Average, Monthly

Sitt \ Siurface \\Hausgh2lds olfSbds- Housefh, sizs Salr

Bordj Noulay Omar 46 ha 6,007 4,557 6 DR 500.00Sidi Baba 12 ha 2,024 X,658 6 DH 400.00Total l 58 ha-\ 8,031 6,215 6 DH 450.00

Located in the nqrther part of the city, BN0 in the northeast aniSidi Baba 'in the northwest, the sld areas' surface amounts to 58 ha. - Sixtypercent of the population, or 48,186 inhabitants livi in the inner uxbanperimeter of the city (see map)\ \

The slums' location offers several advantages in that they have accessto maln rvadi and are in the icinity of primary ihfrastructure. The sheds witha suface of'20 to 120 sqm-are either built in straight blocks, such as DouarJdid in Bordj Moulay 0a, Douar Jdid in Sidi Baba, or irregularly, suoh as AinChebik in Bordj-.Moulay Omar, and Douar lakdim in Sidi Baba. The roads Are narrow _and ln most cases, their\ width dois not exceed 2m1 Rocks in the BMO arearepresent an important prodlem for the area.

7~

\ \\\ s \ ~14'

Within the framework of this slum structure, the Urban )evelopmentProject was designed to solve the probleus created by BMO and Sidi Babs.

I. Project &ontet

The Project was destgned to Include four princ.pal elements:

- a rehabilitation program,- a sites and services program,- th: improvement of the municipal services,- the job creation and job\ improvement. N

A. Rehabilitation *ogram -

-This plement constitutes the provision of basic on-site and off-siteinfrastructure for thb residents of the two slum areas to pnhance the residents'opportunity to construct their own houses within their financial means.

The improvements made by this project element can be described asfollows: -

(1) . lo - \

When the prein pro ect study decided on the definition of theplots according to the existar layout of the reas with minor modificatiois ofthe present structure, it was possible to modify the plots with a surface of, lessthan 40 sqm. The physical and social constraints have led the technical unitof the Delegation to revise the rehabilitation plan as follows:

- widen the lxisting narrow streets by 4m,- provide a dorrect alignment to the surface to be rebabilitated,- decrease the quarters'-density in the spatial iield to

have a miniwm plot size of 50 sqa,- modify the existing structures.

Thus, the 'mwbez of serviced plots falling u-ner the rehabilitationelement of the project is indicated in Table II.

X . . .~~~~~~~~~~~~~~~~~~~~~~~~~

i * , \~~~~~~~~~~~~~~~~~~z

\Table. Nu ber of Serdiced Plots under the Rehabilitation Element

NumbeF of Number of Reduction\ ' SAtR ~~~Sur&"c Planned P^ots Re¢ie PoM nPe*

BMO 54.96 ha 5,245 4,024 23XSidi Baba 10.89 ha 1,629 1,158 291Total 65.85 ha 6,874 \5.182 261

(2) I,suance of Land Tite

- ile the Project foresees the implementation of iadividual plotownership and the issuance of land titles, the effort can only be partiallyaccomplished. As a matter of fact, the' project's land base has not yet beentotally acquited and the technical cadastral files can only be establishedaccording to t4oe advancement stage of the eelf-coustruction, which is difficult,'in view of -the development of a concrete, gheral' plan 'for the 'rehabilitation.

Thus, the transferable and saleable land,- which re*ults from thedemarcation of each plot, can only be. specified, once the self-constru4tion hasbeen completed and cadastral files have been established.

Table III indicates the land situation'o: 'the project.

Tahle IZI: Land Acquisition Stags

Delegation's D-ate ofTot4 Request . qusition at Final

'tled Zaotd Date Da Per e "Transfer

BMO-An Chebik SitePrivate land+ plots l 6ha 79a 88ca 02/01/79 -01/07/86 ' 1002 01/07/86+ $ plots "a 12ca'02/01/79+ 1 plot 8a 36ca 02/01/79 04/03/80 1001 04/03/80#2 plots. - 17a 29ca 02/01/79 04/03/80 100l- 04/03/80

. State lanr 42ha 18a 10ca 06/10/58 01/03/61 '100X 01/03/61

Sidi BabaS 8its and ServicesMisc. TF and TNI 43ha 30a 66ca 02/01/79 various 39X 'various

dates 'date* State land 1Oha 52a 60cas 25/10/68 1001

k~~1. . t~~~~~~~~~

-16-

(3) In9rm atruc&M JDXrgX..Mn.

Se,werage,styeam v I'

Ninety-eight percent of the sewerage syste* has been complEted. Inorder for this to be accomplished, more than. 900 sheds,\or 151 of the total, weredemolished..

In EMO an existing off-site collector has been extended by. ahout 317linear meters to enable sewerage for drainage of used waters of a part of BMOand that\of the city.

tDrinking Water System '

Eighty-five percent of the,water supply system, which was dosigned toconnect all individual,plots, has been completed.

Eighty percent of the aerial lighting system has been completed. Thissystem will provide lighting for all individual houses, as well as the publicroad network. The wood poles are only an intermediary solution and,will bereplaced with consoles as the self-construcior advances. The off-site systemfor public lighting of the MBO South Soulev d has been entirely completed.'.

The 'off-site road network has, been accomplished;, the on-site roadnetwqrk has been paved and sidewalks have s"en installed. Roads that have beendauaaged by infrastructure works will be rehbilitated. Beneficiaries have notyet started with the ped4strian streets. N

(4) RMMlMOn Pi

The land redistribution aqcording to use, projected in the preparatory-project study. is i$icated in Table IV.

. , . , , _u = =s i i a

O Tsble IV: gshablitation - Planned Land Mse

Land Plot to Mupicipal Small Pedestr. Parkad -Z.Lt Housing SeAte Eumen EntesZgm. Lereo a

MO 29.16 54 1.62 0.98 734 2.54 46.18(ha) 03.14X 9.83% -3.15X% -2.12X 15.83X 5.5X 100l

S.Baba I .35 0.26 -- 3;08 0.42 12.11(ha), 88.95X 2.15. -- -- 25.943 3.47 1001

Total, 37.51 80 l-.-62V 0Q.8 10.42 2.96 58.29 8(, oha) 63.5X 8.23X 2.78X 1.68S1 17.88X 5.08X '1001

'An a4 ditional 725 plots have been pla4ind for BO and 37.additionalplots have been plari64 for Sidi1 Baba. However, in the csnurse of the proJect

* * n~~~~~~~~~~~~~~~~~~~~~~~~~~~~~,'. - , .

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.17-

inplimtitation of the rehabilitation element, the forecast data regardig theland use have been subjected to modifications, which are indicated in Table V.

Land Small ex. lunic. Plot to Small Pedestr. Parc/MStt Houstag EnterD Ecu&nn rae £sESEE Rn|K oute Free -Apace Totail

~1( 0 23.65 2.50 0.59 1.02 0.70 22.22 28 596(ha) 431 5X 1X 1.91 1.3X 401 8.31 1001

S.Baba 5.7 0.17 0.01 L- *-*- 5.00 -- 10.89(ha) 52.41' 1.61 O.11 -- -* 45.91 -- 1001Total 29.36 2.67 k 0.60 1.02 0.70 27.22 28 65.85(ha) 461 41 1I 1.51 1.11 41.31 6.51 1001

(5) Grantig of Cgo_GructiLn Loans

The Project envisioned the ,granting of construction loans tobeneficiaries to improve their housixi, the pedestrian streets or therehabilitation of covmercial facilities.

The average loan value amounts to DU 3,500.00 and is based upon theconstruction work cost for a toilet and a 12 sqm room.

The delegation has initiated several meetings with the implicatedorganizations in order to define the required procedures so that the\benafictaries can take advantage 'of this loan. The documents for the loan fileAre

- an administrative certificate signed by the bous.ng delegateand the provincial services,a a photocopy of the beneficiary's indLvidual file,\

- a declaration of the benoficlary rogarding the monthly\payments lequired for the plot acquLsition (the declarationis draftqd by the housing office),

- a siEsrid and ;Xegalized doclaration of the financial-cesi6irces of the beneficiaries working tho informat

sector. .7- e

A selection committee was formed that is responsible to review theloan files -submitted by the beneficiaries. It met once to examine about tenfiles, among which only one file was accepted that f64filled the constructionloan requireients and the monthly payments related to the acquisition.

Since then, the bank has not followed up on the filt that was acceptedby the committee.

The preliminary study found that, with the exception of the enlargementof the primary school, additional commmnity facilities in BMO and Sidi Baba werenot required. As a matter of fact, the enlargement of the school wax completedat the end of 1934. However, the committee took the initiative to developcertain plots and had the following community facilities built:

a cultural center in BO, whose construction has been completed;- a cultural center in Sidi a, whoo s construction has been completed;

* * a house for women in BMO, whse construction has not yet "een started;- a mosque in Sidi Baba, whose construction has not yet bXen started.

(7) Afm1Ltrative Buildi&ngs

In BMO an administrative building has been constructed for the Projoctmanagement and others, who provide assiatance to the beneficiaries whose livingareas are to be renovated. Within the rehabilitation element, other buildingsfor administrative use were completed in MO, i.e.:

- the Cgadat' headquarters In 8MO,- the National Promotion headquarters in BMO,

an agency of the BCP,. a post office (planned).

B. Sites and services pam

The sites and services program entails two roles, namely

t the relocation of households affected by.,the demolition orthe eff*rt to lower the area's populatiottdensity,

- the relocation of households living in small- or medium-0 sized slums tbat will be eliminated.

The Urban Development -Pr6ject plannd -for the sites and servicesprogram to cover a aurface of 46ha in Sidi Baba and Ain-Chebik.

The locati i of the sites isnd services, which are in the vicinity ofthe slums concerned, were chosen because of the available off-siteinfrastructure and easy access to roads and urban transport facilit*ps. V

(1) Sites and Serviceg Dave1opnent"

The develoomenv,of Sidi Babass and Ain Chebik's sites and services wag,planned at the beginning of the' program so that land and infrastructure could,be used more efficiently.. The planned land use -s indicated in the table

- hereafter.*.I

*I, 'P-J:

\ , k . ., I i)~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~",,. k.\

19

Land Coam. /Sm. Munic. Parkssign aQXF£g fitterno Equipm. Sta4a gOker Sre I"

kin (ha) 3.69 -- 0.91 1.43 0.05 6.08-dhebik 60% 15X 24X 1X 100X

'.iaa(ha) 22.43 1.58 4.791329 40.33E561 41 - 11 23Z 1X iobz

Total (ha) 26.12 1.58 5.18 10.56 2.97 46.41571 41 12X 202 7X lOOt

However, in the course of the proJect realization, the planneddevelopment had to be modified, since geoteehnical constraints (ground water insoutheast Sidi Baba, loose soil in northeast Aln Chebik) becme apparent. Thesites and services land use is indicated in the table hereafter.

Table VII - Sites and Services - Actual Land Uge

Land Comm./$m. Nunic. Parks-s ite Hous EZnUexor Sft M QDstreets Opn Sp. Total

Ain (ha) 3.14 0.048 0.14 .70 --- 5.02Chebik 62.55X 0.961 2.78X 33.711 1001S.Baba (ha) 18.48 3.25 3.52 8.81 1.37 35.43

52.16X 9.17X 9.93X 28.84X 3.90X 100lTotal (ha). 21.62 3.30 3,66 10.51 1.37 40.45

53.45X 8.161 9.05X 25.981 3.36X 10OX

(2) , Plot Selection and Infrast Wture Level

The preliminary study foresaw 3,760 plot8 of 60 m2, 70 m2, 80 m2, and100 m2 with 3,260 plots in Sidi Baba and 500 plots in Ain Chebik. Duringproject realization"3,058 plots were completed, 475 in Ain Chebik and 2,583 inSidi Baba, which reflect a 181 reduct.on.

-Of the off-site roads constructed for heavy veh\tcle use, 801 are pavedand equipped with sidewalks.

A planned off-site sewerage collector of 1,200 m has 'een completed \an, in accordance with the Municipality's,request, extended\by 470 m.

The public off-site lighting has been completed on Sidi Baba's northboulevard.

Each individual plot has acSess to the sewerage afi4 electricitysystems. ,

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Four development types on the plots are completed:

,* serviced plot 2,070 unitsserviced plot with closing walls. 869 units

- serviced plot with vlosing wallsan4 sanitary facility 37 ur .ts

serviced plot with closing walls,*i sanitary-facility and a 12 to

16 m2 room 82 units

For information regarding the granting of construction loans reforto the\comments made in the section 'rehabilitation component".

The sites and services program indluded plans for the construction oft.o primary schools, a dispensary and a youth center in Sidi Bba, as well asa dispensary in Atm Chebik. However, the principal coumittee dectded on somemodifications.

The completion of community facilities in the different sites \isUited hereafter. X

64i Baba

The construction of a primary school was started in March 1989, andthere are plans for the construction of another one. Construction for thefollowing ias not yet started: a dispensary, a center for handicapped, a home'for women, a craft center, an agency for civil protection, a 3chool, and amosque.

Ain Chebi kiSohl \A- mosque has been constructed.

- The construction of a dispensary has not yet started.

Besides the cotruction of a* admihistratWuon building, which isdestined for the Project =magement and those assisting the beneficiaries, thesites and services of Sidi, Baba have planned construction of the folldwtng:

- Caidat headquarters;- quarters for the Natiotal Security;- an extension to the Rdgie Autonome de Distribution d'Eau et

d'Electricite;a post office;

- a bank agency.

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'(3) Relocat&on of Inhabitants of Small- and ediuA-SLa Slums

A total number of 512 services plots of Sili Baba's sites and servicesare allo4ated to hoaseholds pf some small- and medium-sized slums, so that theslum can be eliminated. The plot allocation defined by slum size is thefollowing:- Bab M,errah 314 plots- Hamma Yazza 93 plots- Dar Dbagh 64 plots- Arsat Lahbass 27 plots- Jnane,Ben Halima 14 plots

C. ' Tob creation program

X aba The Project planned the development of four zones of 1.5\baa in SidiBaba and BMO to estAblish plots of 150 to 750 m2 for 80 small-sized erkterprises.The execution of this project element was modified as indicated hereafter.

Sidi_ ..b'

t\ur zones of 27,309 m2 for commercial activities were developed sothat servicid plots of 600 to 3,000 m2 for 22 industrial units could bedeveloped. N

A business zone covering a surface of 7,151 m2 was created. S xindustrial units ire planned for the service4 plots, which range from 600 to2,800 m2.

According to the specifications submitted by the beneficiaries of theindustrial units, about 150 Jobs per unit will be created.

Thus, 28 enterprises locate4 in the business zones will offer 4,200jobi in the short run.

This teLd was allocated to investors who committed themselves toimplementing the specifications" program.

D. (unicipal service Improvement program

Th; municipal element of the project entails improvements for thecity, which #re listed hbeafter:

-\ Construction of a municpial technical ,center \for various units andsections of the works service. The construction is completed.Acquisition of equipment and vehicles required for garbage collection,street cleaning, road maintenance, and'the sewerage system.Improved organization of the apcounting and revenue servi"es.

~N.

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It. . lnancing *nd pro3ect implementation

A. Estiated cost -

The estimated Project cost, which is indicated in Table VIII, reflects-the cost for land acquisition, implementation of on-site and off-siteInfrastructuret,-,studies, consultants' services, and project administrition.

-T ble VIII: Estimated Cost

lAmolunt estimated In lthousand DU

BMO 37,763.91Sidi Bdba \ 7 559.06. .

2. Sites and.Servics .

Ain Chebik 6,876.10Sidi Baba 54,803.73

3.Projoet Adminlstrat&g 7,703.83

Total 114,706.63of which 5,534.51 off-site

When the Project was implemented, the actual expenditure of tiedelegation was as follows.

Table IX: Actual Kimenditures

\mlemnt - 6mount estimated. i thobisand DH

1. Re"ablitatiBMt 47,569.80Sidi Baba 4,910.27

2. Sit and Serice=sAin Chobik 17,434 60Sidi Baba 68.017.05.

3 CosliatStudvl \ 3,ject Adminstrat 3,341.29

Tqtal 141,273.01of which 11,569.94 off-site

N "

It canl noted that three stems, namely:

\ - the rehabilitation of BMO;- . the sites and services in Ain Chebtik; and- the sites and services in Sidi Baba

exceeded the estimated cost for the following reasons:

- the cost for land acquisition was higher than initiallyestimated;the amount of work incteaaed (extension of main

- collectors, design. study incomplete);andtthe work was not -comploted on time due to. socialprobletne *which,arose on the site (delay in clearing the'inf*ttructure areas) and payment of the enterprises was

. ~dalaSed.-. -.

B. P.uanc.ng

The Project was financed by the Moroccan Government and the World Bank.The World Bank loan represents 501 kof the total cost with an interest rati,of9.25X payable in 17.years.

'The funds of the Moroccan Government were. added ti the Woild Bank loanand allocated to-the following executing age.cies of the Project:

in the fo6m of budget allocation to the

Ministry of Housing;Ministry of National Education;Ministry of Public Health; and

\ Ministry of *outh and Sport..

in the form of fund \transfers to the Banque Centrale Pipulaire for thegranting of construction loans to the beneficiaries;

- in the form of a loan to the Municipalities for the financing of off-sitinfrastrtcture works, the construction\of a municipal technical center,\and the acquisition of vehicles and equWpment, and consultant services.

C. Implementation schedule

\The Project's construction w rks were planned\for.a 4 1/2 year-perLofi.Annex 1 shows that \the different project elements were not implemented on tiM.As a matter of fact, certain basic public equipment work have not yet beencompleted in areas where self-construction is not available. Other additionalinfrastructure work have- to be done in areas where self-construction ispossible.

\ I \~~~~~~~~

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The delay is\caused by:."

- the goeration method. The Project planned an operation adjusted toexigting structures which did not require modificstions; technical constraints(nar,ow streets),\ as well as social constraints (inhabitants requested regular,relatively large plots) forced the technical setvice of the Delegation to revikethe rehabilitation plans that caused additional work.

- the infrastructure dslgn stdies.\\ The studies were incvmplete as farathe kn E edge about the sewerage system and the required work were concerned.

:.-.- th uSnre."re ti*tIo of the social oroblems in the areas that had tobe rehabilitated*. For eta ple, a delay of 24 months was planned for tie-roadand sewerage.torks tin the sites and services of Sidi Baba, whereas 18 monthswere plannd for s,IMi works 'in .O.

= thieOnlitio to, clear_the rastructure site wa not performod vh8nit was necessary. . s w

-- - ithe administrativs nroeedurea for procurement and land aeq(isitionwere long. -

- tho tawmentto enterprises were delayed. Construction work of thesewerage system in Sidi Baba 'was delayed by 3 1/2 years because ofadministrative *ormalities and payment delays.

D. Dis8u" ememts

Disbursements of fhe World Bank loan were allocated to cover\ 558 ofthe expenditures for civil works, 75X for expenditures related to theacquisitlon of goods, and 601 for consultants' services and studies. It shouldbe mentioned that he disbursement for civil works was inc4eased by 201jforexpenditures made after January 11, 1985. The disbursements for expendl4ureZareindicated in table 10.

Table -: Expenditures ,eguest,d in Disbursements - ,

Tyge of axne n tures Amount of aid gn es I Refinancing

Civil works 11,818,389.94 551 6,500,114.47Civil works 46,036,429.29 751 34,527,321.97Goods 6,629,699,13 751 4,972,274.35Consultants and studies 2\122,546.42 601 1,273,527.85TOTAL\ 66,607,064.78 -- 47,273,238.64

A

V

N

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'. Ifl. Pro lect oruaniaction and manamement Y

Five Ministries, the Municipality of Meknes, and the Banque CentralePopulaire'were responsille for the implementation of the project elements whichare indicated hereafter:

RQhabilitation - Sites and Services ,'Serviced Plots0 for Small-sized Enternri8res

Land aciquisition Ministry of Housi4*On-site' infrastructure Ministry of HousingCores Ministry of HousingOff-site inrastruce \' Ministry of HouaingAdiinistration buildings for the project Ministry tf HousingConstruction loans Banque Centralo PopslaireCommunity equipment..

- Schools ... . inistry of gational Education, - Dispensaries -. ; i} Siastry,4 tPublic Health- Youth house . Ministry of Youth and Sport

ImMrovement of Muniipela Services Municipality of Meknes

* onsultAnts and Project Adfinistratin All executing agencies

(1) Ministrs=o Housing

The Xinistry of Housing participated in the. project implementationthrough the Housing Direction at the central level, the Delegation at the locallevel, which then delegated the various tasks to a technical service, in chargeof

- supervision of the consultants' activities,- preparation and organization of procurement,- planning and coordination of implementation of the Work,- supervision of work completed by the enterprises,.- prepar&tion of payment orders upon completion of the work,- accounting of matekial expenditures kelated to the Project,

preparation of progress reports.

The technical service is managed by a delegate sand includes anengineer, an architect, an accountant, and two technicians.

The delegation through the intermediary of its Housing Office, is noto#ly responsible for the infrastr_sture work, but also for ehe social,financial, and legal' questions_ that arise in the course of th4 Projectimplementat4on. \Tvb administrative buildings in BO -and Sidi Baba wereconstruct d. to Accommodate the Housing Office staff (one economist, twoaccountanis, two technical assistanws, three clerks, two office clerks, onesecretary), which is responsible for*\ .

<I ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~)

26

- Preparation of individual filesfor the beneficiaries oi the project;- Relocation of the ',inhabitants affected by the on-site

infrastructure works;E- xamination of requests and selection of candidates incooperation with the sub-coumlssion, which is composed ofthe local authority and area representatives, (the finalselection is made by the regional allocation commissio ); \

- Determination of the monthly paymnn to be made by thebeneficiaries, and supervision of th4 cost recovery, (atthis level, the Banqqe Populaire plays the cashier's role);

- Collaboration with the services des domaines to register anddraft land titles for tha plots;

- Assistance to the households to apply tor construction loans;- Imple2eutation of, the allocated plots;

TechnUiol and administrative assistance to the Project, bineficiaries.

(2)- trinltLlDppet. .:.

The delegation allocated certain plots,to the ministerial departments,who are in charge of installing cotmunity facilities.

I\ (3)

the municipality is responsible for preparing bidding documents forthe acquisition of equipment planned for the Project, and for the constructionof technical municipal center.

(4) The Aaiue Populaire-.

The Banque Populaire's task is limited to the collection of downpaymenlts and monthly payments made by the beneficiar4es.

(5) Dhe roiesct Steering Committee -

The Director Coupittee Xis composed of representatives of eachministry's external service, the municipal-council, and the Banque Centrale_Pop4atire. It is chaired by the Governor wnd participates in the Project-execution by coordinating the various executing organizations and alting asjudge when problems arise between the executing organizations. .--

(6) &Vffd Commin'

The award commission, chairedby the city's pacha, participates in theProject administratIon and makes the final selection of beneficiatres chosen bythe sub-committte, which is chaired by the Caid of the district.

A~ ~~~~~~~~~~~~~~~~' X~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~, .\.

\ \ \) -

-27 -

fV. - inuanlal asneceW of the nroiect

A. Cost recovery

ThWe Staff Appraisol Rep9rt envisaged that 751 of the total Projectcost would be direOtly recov~ered b3 the beneficiaries' payments in form of ppotutilities; 91 would be recovered by the Municipality, and 161 would be recoveredby the Government.

The recovered cost. would be used for the development and servicing ofhousing and industrial plots and would comprise the following: \

- land acquisIFion -- on-site infrastructure,

office'construction for.the housing offices..- project planning and supervision,- interest during construction,

minor off-site infrastructure works for drink water supply.

Nu-nicip4l expenditures cannot be directly recovered by bthbeneficiaries. They relate ito off-site infrastructure costs and costs for theimprovement of municipal services. National budget expenditures are charged tothe state and are designed for municipal equffipment.

S. -S$tuation of allcptions and loan conditions for the beneficiaries

(1) Situation of Allocationl

In March 1989, the allocations made so far are given in Table XI.

abMl2 XI - StuatLio of Allocations

Number of Number of Number ofservice4 plots \ allocated plots kDiviaries

BMORehabilitation 4,024 1,716 2,145Sit"s and Services 47t 472 607

Sub-t6tal 4,499 \ 2,188 2,752

Sidi BabaRehabiliFation 1,158 380 475Sites and Services 2,583 1,813 2,175 X

Sub-total ,741 2,193S 2,650

Total 8,240 4,34 N 5,402

I.

- 28 -

(2) Loan Conditio X

4t)' Housing pvQro4m

tSites and services. The loan for the plot acq%4sition is reimbursedwithin 20 yeaKs,at interest rate of 72.

The Project completion report envisaged that a 10X down payment wouldbe made on the toFal sales price for sites and services plots, aslwell as plots,created under the rehabilitation eleaesit. .

< ,,-Tempayment should not exceed 202 of the beneficiary's incomeVngseqt4entLy, households with 'n income, higher than DR 500 culd acvess sites!ind service plots .

However, when ithe-demolition for the clearing 1of the infrastrdctures:. tatted, householdsiti'h an income low r than DH 500 refused to teloc&te insheds becense of the MargipalizAtIon effect.

'rhe alloation comission epnsequ.ntly revised the fi a L str cturefor the cost recovery (Table XII) to solve that problem, which hampered theinfrastructure works. -

The Staff Appraisal Report envisagad a cross-subsidy between the sitesand services program and the rehabilitation elmuent. The reduption in theimplementation of plots/sites and services and the relocation of the househoAdsaffected by the demolition and thet effort to reduce the population density has,however, conpiderably decreased thS number of sites and services plots that wereplanned to be commercialized according to Whe market price. Only some plots inSidi Baba were sold to ERAC C/S.

- . e Rehabilitati me-beneficiaries of the rehabilitation element makea down payment amounting to 1,500 DX. Their monthly paynent is based on theplot size and in madi over a period of 20 years with a 7X interest' rate (seeTable XIII). l -

(B) I¶ISTRIAL P4.0TS P%OGRAM

This element eatails a reimbursement within 10 years with a 102interest rate and a 202 down payment of the total sales price. The majority ofthe investors, however, opted for the cash payment for the plot (see Table XV).

(C) DETERITSWTION OF THE PLOT PRICGj

(1) Sites and serviciaes

The determinatiln of the huaing plot price is indicated in Table. MI;.1

N .

'.,

j x - .-

-'29-

Table xi! * Ootami,utin of sh itu mg ROvVIa BEPIMe

optim ~~~~~Sidi Saba AfiV- wbik60M up 60s do u 70au 6so

core plot cwo, plot or plot core plot Coro' plot cor plot

unrt unlt uimt unit unit unitplot cost (D#/sq9r) 37? 212 37m 212 3m7. 212 51* 501 501plot price 0DIsqa) 435 255 435 ' 255 435 255 35 375 375$slts price 26,100 15,300 30,450 17,650 34,60 20,400 22,500 26.250 30,000dspMVwnt' 6,000 3,000 7,o000 3,00 8,000 4.000 $,000 6,000 7.000outsandlf,,balance. 20,100 12,300 2,450 14.350 26,800 16,400 17,500 20,Z50 21,000cthly.fnstalluent 155.0 Me.0 181.0 111.0 207.0 126.5 135.0 156.0 167.0

I As caeem Ain Chebik sJtes mrd sorvtcm, ePss-OWdy wmus m vfIth IqO tWrad plot fn ordn to reuete prlce of cowe. uft. t

2) Deterfnl Oi of «eh flataailita;ion Cos

. ,, . - .,'T ,a IT- - .pa l~terma' \j

Borj NMoula Omar Sidi Bbab.a.a^m 50 S 60 n2 so 5L

Plot cost DH/m2 159 159 92 92lot price DH/.2 200 200 200 200Sales price 10,000 12,000 10,000 12,000ow paymentl 1,500 1,500 1,500 1-,500

Loan balance 8,500 10,500 8,500 10,500Monthly payment 65.50 . 81.00 65.50 ,81.00

According to the determined prices indicated In Tables XII and XIII,the cost recovewry is directly made by the benoficiaries as shown in Table XIV.-

Tle XV - Ca& RecSea Situation

Amount of planned Amount of actual Arrearsrecovery by recowery1 by in DH; Arrears

BMO Ain Chebik 13,726,934.47 6 53 i4,900.31 7,189,034.16 \ 52.4Sidi Baba 21,542,210.94 15,006,457.00 q,535s753.94 30.3Total 35,269,145.41 21,543,357.31 131724,788.10 39S

Figureq show that the average financial defIcit for the cost recoveryamounts to 391; vhereby the deficit concentrates more on BMO's rehabilitationarea, even if the betterment tax for the total allocated plots amounts to 70X.The beneficiaries' savings vre almost otally inwested in the construction tothe detripent of acquisition>..

N~

-30

(3)

\The det~ermiination of the-~commercial plots is indtoaatd in Table XV. ,

Table XV -Dtrinatiop a oaftdstrial Plot Price

Plarmed Actual-NV. of unit Unit Recovered Recovered

Industrial NV. of Suer Allocated Cost \Price Amount Amount

BMO 6 \751 6 8.510 70510 705,100Sidi # 22 27.309 22 83.25 100 2,730,900 1,732,800

:Total 28k -280,360 28 8.5100 3,435,,900 2,437,900

. ~ ~ . ..

Of thes 141,273,010,00 DUI invested' 6.h delegation' recovered only DRi 23,982,259,31 during the past six calendar years , which repnaesents 62V of38,705,045,41 DHi scbedule~1 for March 31, -1989. The cost recovery r9Imainsprecarious.

The Urban Development ?iojct has produced 0psitive effacts on theurban morpholoNr of Uhn city:

- The living conditions for the target population were Imnprorved.- The restructured districts were ilitegrated into an urban structure.:* Th~ creation,, or the improvement of the -job

oortunities, was made possible throug'h the developmLentofnindustrial land or Project-constructioVn work.

zeThe hotsing deficit In Mleknes was reduced0.- The price on the land market was balanced.

9f savi4gs of the alum population were Invested in.D4gricultural products, jewelry, furniture.

\ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~ -' I ' h Uban Dvel _ntP c hs podoedpoitveVffctsonth

urban morphol s of the cit I '

- te itngcodlios orth trgt oplaio wreiwroed

t 8~~~~~ETRY OF flOW1IllG

.~~~~~~nNm -J,1: *

P . . . ' ':.~-y

* l V" - -

Vi

-32V

EVALUATIONA EPORT a IEUN MMDEVRMETPJECfT OH ERaA M

Within the political framework to giadually reduce the slum areas, anurban development prograw was launched in Saknia-Rouchtyne, which is located inthe eastern part of the 'ity. The program aims at creating a decent housingsituation for the low-income population living in the city's most populated aeeaof the city.

Concurrently, and cq<rding to the diretives of His N4jesty, theKing, a comprehensive and ambitious commercial 4evlopmeut, prgram was lannched,.,to create a maximum numbet' of job opportuntties.

The Urban Development Project concerns a large part of the southeastextension of Kenitra, whose borders are in the East with flooding areas, in theWest with the Ain Seb4 route, and in the North with low cost plots.

The prQgr4'8 sgoals are to solve the housing crisis in thii. part ofthe city an& to fight against the progression of the Saknia slum. The Projectis composed of three principal elements.

I i (a) Rehabilitation,.(b) Sites and Services, and(c) Development of Business Property.

A. Rebabill tion

This element refers to the slum of Saknia wiLti a popula tion of 40,000people. The project consists of providing the slum with a road network andother systems, transferring land to the inhabitants, and constructing municipalfacilities, sucwh as mosques, hammams, and ovens. A total of 6,129 plots fallunder this project element. .

B. Sites and Services

The sites and. services element refers to the relocation of theInhabitants of Saknia, as vell,,as those of other slum areas of the city. "therelocation of Saknia's inhabitants has \become urgent.

The development of thls and refers to basically equipped plots witha 60 to 90 sqm surface, which appeir as cares units and serviced plots. Cokeunits are lkud plots with clo#ing walls end a room. A total number of 909 coreunits and li636 serviceable plots fall under this project element. Low-incomemultistqrey buildings are built in the sites and setvices element.,

o t \ V~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~\...

0~~.

~* C'' I,V

33.

C. Development of Business "roperty

The area should be provided with third category commerci~l land. Theoperation's goal is to move harmful activities away from the cty's center, and

\ to create employment opportunities in the Saknia region for the sites andservices' and slums' population.\ The commercial property is located at the AinSebaa route and easy to access.' Two hundred sixty-one plots of 100 to 2,00Qsqa. fall under this project element. \

Basic Data

Population affected 40,000 inhabitantsBeginning of the works December 10, 1981End of the works September 30, 1988Project\Cost DR 110,000,000.00Financing sourpe Budget credit and World Bank loanEquipment Cost VRD DR 52,405,361.95

With DH 36,727,921.97, or 701 of the total cost, the World Bank hasfinanced the VRD equipment.

Various organizations have participated in the operation'sImplementatIon. The local authorila was responsible for the population transferand the upholding of order throughout the different stages of implementationstages.

The Municinal Council was responsible for the management of the roadnetwork, sewerage system, And the household garbage disposal. The arsbitects'association des4ned and supervised construction plans until project completion.Also various training sessions were organized to ensure reliable and strongself-help copstruction.

The srvice des domal supeivised the resolution of legal problemsregarding the acquisition of plots. And, last but not least, the' mainorganization in this operation was the technical housing service, the program'spillar, which directed the project implementation.

All infrastructure works have been completed.

There \s a-\ slight delay in housing construction, caused by theben;ficiaries' limited financial means. Horever, some of this housingconstruction has already been co6pleted.

With the rof job opportunities, this Project has caused achange in the economic' field. The Urban Developpent Project hbs created a majorconstruction site, where the building process advances steadily\,

Thus, the Urban Development Project has assured the economic rise ofthe ~ector, which had once been con,idered a marginal dormitory zone.

\'' \ .' '*

I' '.'-

lj v\\ \ \ o ~~~~~34*

Socially, the low-income population has moved towards a more st&blesituation and h4s concentrated all of Its efforts on escaping from a dead-endsituation.

This Project has enabled the creation of, ihat was previously almostnon4existent, soclo-cultural facilities and commercial centers, thereby Changingthe area's image.

Upgraded housing has allowed inhabitants access to a better qualityof housing and commercial development has created long-term jobs for theinhabitants, especially for the slum inhabitants.

As concerns the industrial areas, according to the Governor's.instructions and decisions of the Project Commlttee, it has been decided to varythe plot size ranging\from'100 to k,000 sqm, so that different activities arepossible. T14e development of this area has been realized within the frameworkof the SGMA, prefinanced by the beneficiaries.

The Urban Developm nt Project has enabled savings acc¶unt holders tofiund'small enterprises in keepLng with to4ay' s requirements. A high p percentageof beneficiaries belong to the working class with low and inconstant icomes.Since this class represents a large share of the population, the revenue percapita is one of the lowest in the city.

The city has tR provide the sector's nektessary eans to'ensure itsharmony and well-being; if it does not do so,' social tasiop will appear ln themost populated areas., \

As for the drawbacks of the project, the following elements should\\beconsidered for the deslgn of a similar project: one household per plot,whatever the family relationship; a tecent survey;, the plot distribution andconfiguration,' as well as the various necessary plot equipments have to bereexamine4, whatever the population living t)ere. It has to be done accordingto the texts,and laws in fo*ce and the plot area should be uniform for all the-beneficiaries.

As for the systems, it\bas to be mentioned that the streets are notpaved and during the ralny season, sand clogs up the sewerage system.

If the experience is repeated, a better coord.nation between theauthorities and the population has to ts~e place\to decidL on the outline anddirection of such an ambitious pr,oject. Some pitfalls could have been "o4dedif the p6pulation's desires had been taken into account.

However, the project i8 'a s WcCess, slnce it has definitivelyeliminated an insalubrious housing a ea and 'reated better living conditions fora very important part of the pulation.

r ;

-35.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

The present cost recovery amounts to 102 of the total amount beforethe beneficiary starts the coiatruttion. -The remarinder is staggered over aporiod of up to 25 years, Wihich is determined by the benefLeiary.

According to the procedure, the monthly 'ecovery of the remainder ismado by the Banque PopulaLre vitin a 20-year period. One of the convention'sconditions is that the age limit' for the recovery of the last monthly paymentis 61 years, whereas ihe majority of the teneficiaries is older than 55 years.This, they cannot take advantage of this recovery solution.

The sales plot price amounts to DH 120 per sqm for slum upgrading andsites and services areas and is equal to the land acquisition and developmentcost. Compared with State development programs, this price is very lo*. T4isresults from: the housing high density, the fact\ that only necessaryinfrastructure has been implemented, and the fact that 80X of the land waseither in provincial, ot municipal ownership.

The works were performed under very satisfactory conditions due to thefact that in most of the cases the study respected the existing development.

1~~ I

\~~~~~~~~~~~~~~~

\~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

' ~ ~~~~~~ \y

.~ - ,37

1. Related Ban% Loans and/or CreQSt

Loan/credit Y9ar ofTitle Purpose Approval Status

Loan 1528-NCO', To help finance Rabat 1978 completed inFirst Urban Development Slum upgrading ai1 sites tlarch 1984Project and services program

Loan 2272-MOR To help build up the 1983 to bePilot Project for the Communal Infrastructure completed in-Communal Infrastructure Fund and fUnance December 1989Fund Infrastructure

subprojects

Loan 2,245-MOR To help'CIH finance low 1983 to beHousing Finance Project cost housing subprojects completed in

December 1990 \

~ @ ~ 38 - -

Date Date DateItem Plannsd Revised Actual

Identification Jan-78(Executive Project Summary)

Prepa2atIeon Beginning May-78Preparatio8 nd . Apr-80

Appraisal Hission Apr-80

Loan Negotiations Iov-80

Boar4 Approval 22-Jan-81

Loan Signature 16-Apr-Si

Lomn Effectiveness Apr-81 04-Aug-81

Loat Closing 31-Jul-86 31-Jul-87 31-Jul-88

Project Completion 31-Jan-86

. ,

:. . -39-

3.

blisbursem=nts (ln $lfillion)Loan 1944-NOR

Banik Fiscal Year lEstimated Mtual Actual Z of->and Quartet CumulatLV Cumulative Estimated

1980/81 1 0.002 0.00

4 0.00

1i81/82 1 0.45 0oi2 \ 1.00 OS3 1.80 OX4 *2.75 01

1982/83 1 3.85 OX2 \ 5.20 1.01 19X3 6.85 1.75 2614 6.85 1.75 261

1983/84 1 11.2S 1.75 1612 14.05 1.75 1213 16.95 2.14 13X4 19.85, 2.14 11lX

1984/85 1 22.65 2.14 9X2 25.45 2.80 11'3 28.15 3.86 ' 14X4 30.45 5.56 18,

1985/86 1 32.25 5.84 I#t33.85 5.84 17%35..15 5.64 17

4 36.00 7.23 201

1986/87 1 '36.00 7.60 21X'2 36.00 8.17 ;313 36. 00 8.17 231\ 4 36.:00 9.02 25S

1987/88 1 36.00 9.21 2612 36.00 9.32 2613 \ 36.00 p.36 2614 36.00 J.37 261

1988/89 1 36.00 9.51 2612 36.00 9.72 \ 27X3 36.00 9.79 27Z

1. .

2 v \ \ \ ,.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~'

SECOND.-URBAN PROJECT0 1 SKRSBtJENt SCWEODLE

40 -

@ 3- V

30

* . 25

-o - 2015 - / o ° . . ' Y -.

- "* '- 10-..

10

J -- ° ;- _ '

_ ~ ~ ~ ~ " O t I I~~~~~1 - T- 1-- I I I I I I I I l I I I I I I.

-3 acudsusmetetmae bus1982 1983 1984 1985 s1986 19ur9s8

o actual disbu-sement , estimated aisbLrs.-- o >US5 '8B efstbirs.

_ __~~~~~~~~~~~~~~~~~~~~~~~-

4. _ 1 - . . .

Indicatorsl . nraisal emtimate Actual

,Slum upgrading 7,100 plots 6,129.

Sit1s and SeF?vi-es 2,640 plots 2,545

building material loans 3,550 loans no loans

* 6,874 plots 5,182Slum upirading5

U'~ Tfl5 3,760 plots 3058Sites and Services

3,340 ,1eaw no loans8building material loans

. I~~~~~~~~~~..\ ~ ~ ~ ~ ~ ~ ,~

I _ ' \~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~*

5. Pro.1ota coats ABA FilbaN

A.

A}~ ~~ Appaeua Ss4mt. *Q0 ou', ,t

local Fore"i Local. foreiSg

ite.. - Conte Wham Cost Totall Costs Eehang Total

_ . (DE 000s * t~~~~~~~~~~~~~~~~~~~~~Dl '0001

1 _nitta -sites god ces

s14d ag1dtsie 21.078 0 0,0S 21,078 23,861 0 23.061

infrastauotu4e 4,017 13,371 23.32 57,309 27.780 11,471 49,231

-building o0ateial loans 16,754 5,089 23.32 21,843 0 a a

cawxmitl teilities 17,763 5,396 2z.32 231,59 0 a a. a.:

2h1s-aod e6eplres sites servces La 14nd doqA81tiUn ' 3,660 0 0..D0 3,608 2,878 0 2,878

laknfr^astreoturi 1.108 es 8.0S 1,204 2,575 224 2.709

luprovant of etwuilserviscs 4,178 4.523- 52.02 8,699 3,783 4.076 7,839

Dealed desin, -

SUPeUvISaon & .a aemnts 7,216 -1,80o6 28.02 10,022 2,646 1,245 4.091 - I

*La uperadius and sites ad serviceslend acquimiUm 34,1sr 0 0.02 34.187 52.650 0 52,6502

intrsstut.ntus. 48,397 13,255 21.52 81,652 6,675 17,248 80,223

bUIiag Idiiriel loans 20,399 5,640 21.52 26,231 0 -o0 o

Coimnity facliUti s 12.354 3,88 21.52 13,737 a. a. na. In a.

soeooul 3,841 2.781 -42.0I 6s,22 2,800 2.027 4,827

Detaid desig n-supervision & managingt 7,144 Zfe8 . 20.01 10,062 2.378 -689s 3,341

Studio fot the prepaaionof new rban puojeo 4.550 l,58- 30.02 6,500 0 0 0

IML _24,834 01,211 308,045 104,577 37.16_ -231.738

* -1~3Theas cost-s include-price and physical contiigencies.

2 Currenrt estimate: the acqui-sition Qf l,and is not yet completed.

3,Comuauity facilities have been funded under separate budgets. -,

11) PfOABC C8ata i u t'ooo

Ima1ssl Estimate iCR estimate

Local F@zein Local Fo?.tSnitem Vosts - nsmdio costsa ?totl Costa Ez9dw*g Total

UU1-DUSB - MS).- 8B784

slm unridi" ad siats and s' lcosland soquisltlos 3 ,547-. 0 0.01 5.547 2,718 - 0 2,718

-P ~~infrastructues- I- 11,584 5,519 21.52 15,102 4,501 1,506 5,607butldiut mater.al L ot 4,408 - 1,339 Z3.3X- 5.748 -0 0 0

C ltp ai iis4,674 1.420' 23,51 6.094 0 - 0 0

land £cqu1sLtiut 0 0.02 905. 528 0 529iafrastzuotun 281 2as 6.02 31 .295 28 3It-

$aProvaaent of mino1aisozvtc.s ~~~~~~~~1.098 1.180 52.02 2.289 1.20e 464 693

mUPOzvISIOU NUAa.aMOSt 1807828.02 2,657- 355 '10 4660

mwm

slum upszadlg and' sltes ad4 s.zvloes ',

land acqulaitian - 8.57 0 O.O .897 5,8-7 0 3.987-tmastaucomt cu 12,735 3,48 21.52 18,224 7,173 1.064 9.137buUdlns material lomn 4,419 1,484 21.35 8.90 0 0 0Cl maity foilltles 3,251 88 21.52 4,141 0 0 o 0

ipaveament of iniolal.m rvIo.s 1,011 .752 42.01 - s1.743 318 231 550

supozvlslan & manauamsat 1,880 7ne 2s.01 2,648 270 11o 581Studies £o~~tb0 erospaaanof na ma rjcs' 1,19I-- - 515 50.02 1,711 0 0 0

,~~ ' - ,-

Snfsestsweture ~~~~~14,waM 3,488 2 1.5506,2 27,va 4,2o2 2,I.39n

48.7lUl ¢utrla Loan t- of t 419 1,484ut rates Us"0 0iaebf 0hs 0Wtsm at .:

fj t *-44-*

B. RJo.liionEtwng

Planned in the ActualSource Loan Agreement

1 > ~~~~~411 PlanD3)4t. *p0 AS*in%l" *#nnn

'. .IBRD ' Expenditure CategoiiesWorks 63,460 16,700 72,475 7.,987Building material loans 19,380 5,100 0 0q pment, furniture and vehicles 10,260 2,700 9,715 1,349.qonsurtants' and professional services 12,920 },400 3,709 449Unallocated I 30,780 810p0 0 0

Domestic .171,000 45,000 145,801 16,615

TOTAL 307,800 81,0Do 231,700 26,400

6.Z .o.eXj ._e.~~A D.t Benfit

Appr-isal Estimated at

Indicators Estimate (Full Developmuent

niumber of serviced plots 13,974 .1,J1

sites and MU r

tumber of serviced plots 6,400 5,603

I~ .

le~ ~ ~~~~~4

B, Economic Impact

Appraisal Estimated Actualk Estimate (4t Final Development)

Economic 182 13XRate of Return

k'UnderlyingAssumptions

Project life 20 years 20 yearsfull development 1986 1990annual operation and maintenance 31 3%(X of total development cjst)

This calculation concerns only the sites and services and the slum upgradingcomponents. They represent 912 of the proj ect cost. The difference betweenappraisal and final estimates comes from:.

- higher costs (+ 132 alnly land acquisition in Meknes) and- a smaller number of plots (-172) due to physical and social tonstraints

reveale4 by detailed design studies.

C. Studies

Purpos aseDefine4 at Impact ofAppraisal Statu.Study -

Studies

organization reorganizing of completed. as been used asa.and management the accounting background for thest'udies and tax depart- computerization of

ments of the thdse services-municipality ofMeknes

Sewerage master Preparation of a potentially largepla_ of Kenitra rehabilitation in progress because Kenitra is

program' facing difficultproblems in this'field

* S,, J

C"

t~~~ | |

-46-

. SA of GaenAt :

Covmat _ ubAeot .comialiance

UA 2.04 closi date be July 31, 1NG oxtended toJuly 31,1980

LA 3.02(a) a. to uwly qual. cenaults. ftor ivil work edpreartiu of at Wm lojeet

LA 3.02(b) B. to emply qual. mat consults. for B. ot ta, accotte, Yarganiatioa of Meams fmicial

LA 3.02(c) B. to asploy qua. ^.cedls. S S. of 8sitr a8sowoe Yaster plfa

LA S.02(4) S. to engage CMD to advise beneficiaies on inotent pPoM.

LA 3.04(bfl) D. to mainain refords tot monitorin poject expontures y

LA 3.04(b)Ui) B . to furnish to Dak ne o"o. int. n costs, bnefts,. Yexpenditure

1A 3.04(c) 3. tb pm t unito, to fciSlh PoJet Pro. Deprt Yvry ai mts until 2/87

IA 3.04(d) . ollowi n f contracst by B, Dank ma pubU0i. Sa in Bank didnot usee 1%

LA 3.04(e) S. to ftnish cc Splet.n report witbin 8 maths of receivedclosing date 0/88

La 3.05(a) B . to acquire neeosey lnd igts not yet- ~~~~~~~~~~~~~~~~~catepleted

LA 3.06(a)(b) B. tACMW*Mitr*a VtS tO enter W on-lndina WAs Y

IA 3.06(c) B ..to Ge ith & R38 ro Austall, of water en Yelectricity 31frastructure

A 3.0M(d)S) U too eter Into sgreat re los or building materials

LA 3.06(d)ii) to e1ta to eremst re sal of pots to Y_aelaries -

LA 3.07 S. to edply qua1. ast for axe., of projet vlw4Iiplammt. Ysaocl"/unlts

LA 3.08 3. to cary out stud on cost recovsr via plot sals I

LA 3.0k 3. to nsroe saurvay ad eadastra o plt boundaies I

IAi S.10 1. ito ensure that approate land useuldi re sutas Y ;bay been aunt to the Dak for appr weZ

LA 3.11 3. te select plot benofiolaries unde apop. crite"Aproo. Y

LA 3.13 aIP to 7tblisb branch offie ae project sites ' b' Y 6Ko ;n4tra underw

LA 3.14 B. to use approed standar agre4nN_ta for easle of S

L 3.35 3. to ee_penste, reloate displaed resident, gs pprop. Y

LA 3.18 D. to consult with Dank re jrogsa o! ant r -3eY

l~~~~~~~~~~~~~~~~~~~~I -k : -Il --

.. . .~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~A~ ~ ~~' .,

' '-47 7

8. Uso ax fLesour.e

S tage ofP Rev"sd FinalP3sojikt C"le

Trgb Appraial - : - 207.5

Appraisal tble ' 14Board Appraval'

Board Approvaltbkougb effectiveneas

Supexision 130 65.7

2".2

8tage of M*th lumber of d.ys" pweolsatbim a-^oject C"le ye" ; Pses u Fled Rep,e8tatus

Identification

App assl 4/80 6 100 eoonmit\ uxba pannes (2), ahteccivl onie fbnncial n,. at

Su9erviele I 2/81 9 urba plannerSupervision It 4/81 3 archtect, planner, micipa3. eq13eer 2Supervislnm III 3Y82 \1 2 a7 Spervisio IV 6/82 1 8 pae 2Supev= sion V 11/82 a 8 plannr, architect 2Supervision VI 3/84 Z S\ planer, mdicipal engineer 2Supervision VII 10/84 1 4 planner 2Supervision VIII 3/85 2 5 urba planners (2) 2iPo*rvi ie, XX 3/85 1 5 - an planr 2Supervin X 3/86 1 4 urban plx 2Supeision XI 7/86 1 4 urbn planner\\SuJrvision 1II 3/87 1 . 4 -rba lanmer

SupervisiY total 78

6/88 . 1 . 6 hubain spciati-b

.~~~ . - -

..