.- A     3, ,L/ No,/
Document of
The World Bank L            /V
FOR OFFICIAL USE ONLY
MICROGRAPHICS
Report No: P- 6131 MOR                                          Report No P-6131-40R
Type: MOP
MEMORANDUM AND  RECOMMENDATION
OF THE
PRESIDENT OF THE
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
TO THE
EKECUTIVE DIRECTORS
ON
PROPOSED LOANS
IN AMOUNTS EQUIVALENT TO US$128.0 MILLION
TO
THE KINGDOM OF MOROCCO
AND
US$32.0 MILLION
TO
THE OFFICE NATIONAL DE L'EAU POTABLE
FOR A
FIFTH WATER SUPPLY PROJECT
OCTOBER 28, 1993
This document has a restricted distribtion and may be used by recipients only in the performance of
thdir official daties. Its contents may not otherwise be disclosed without World Bank authorization.


CURRENT EQUIVALENT
(as of mid 1993)
Currency Unit     -     Moroccan Dirham (DH) - 100 centimes
US$1.00           -     DH9.00
DE1.00            -     US$0.1111
DH1,000,000       -     US$111,111
PRINCIPAL ABBREVIATIONS AMD ACRONYMS USED
ADB         -     African Development Bank
CFD         -     Caisse Française de Développement
CIRF        -     Centre Inter-Régies de Formation
CLs         -     Collectivités Locales
CSE         -     Conseil Supérieur de l'Eau et du Climat
DEPP        -     Direction des Entreprises Publiques et Participations
DGCL        -     Direction Générale des Collectivités Locales
DRSC        -     Direction des Régies et Services Concédés
ESPD        -     Epidemiology and Sanitation Program Directorate
HA          -     Hydraulics Administration
MARA        -     Ministère de l'Agriculture et de la Reforme Agraire
MOF         -     Ministère des Finances
MOI         -     Ministère de l'Intérieur
MOPW        -     Ministry of Public Works and Vocational Training
MOPH        -     Ministry of Public Realth
NMD         -     National Meteorology Directorate
OECF        -     Overseas Economic Cooperation Fund (Japan)
ONEP        -     Office National de l'Eau Potable
RAD         -     Régie Autonome Intercommunale de Distribution d'Eau et
d'Electricité de Casablanca
RADEEF      -     Régie Autonome Intercommunale de Distribution d'Eau et
d'Electricité de Fès
RADEEM      -     Régie Autonome Intercommunale de Distribution d'Eau et
d'Electricité de Meknès
RADEEMA     -     Régie Autonome Intercommunale de Distribution d'Eau et
d'Electricité de Marrakech
RAX         -     Régie Autonome Intercommunale de Distribution d'Eau et
d'Electricité de Kenitra
RAMSA       -     Régie Autonome Multiservices d'Agadir
RED         -     Régie Autonome Intercommunale de Distribution d'Eau et
d'Electricité de Rabat-Salé
TA          -     Technical Assistance
WSD         -     Water and Sanitation Directorate


FOR OFFICIAL USE ONLY
KINGDOM OF MOROCCO
FIFTH WATER SUPPLY PROJECT
Loan and Project Summary
Borrowers        :    -       Kingdom of Morocco
-       National Water Production Utility - ONEP with
the guarantee of the Kingdom of Morocco
Beneficiaries         -       Epidemiology and Sanitation Program Directorate
- Ministry of Public Health
-       Hydraulics Administration - Ministry of Public
Works
-       National Meteorology Directorate - Ministry of
Public Works
-       Water and Sanitation Directorate- Ministry of
Interior
-       Water Distribution Utility of Casablanca - RAD
-       Water Distribution Utility of F6s - RADEEF
-       Water Distribution Utility of Mekn&s - RADEEM
-       Water Distribution Utility of Marrakech -
RADEEMA
-       Water Distribution Utility of Kenitra - RAK
-       Water Distribution Utility of Rabat-Sal6 - RED
-       National Water Production Utility - ONEP
Amounts              Two IBRD Loans:
Kingdom of Morocco        US$128.0 million
ONEP                      US$ 32.0 million
Terms                Bank's Standard variable interest rate, with 20 years
maturity, including five years of grace
Onlendincr Terms     Same
Co-Lenders      :    Overseas Economic Cooperation Fund (OECF);
African Development Bank (ADE). Amount: US$84 million
equivalent
Foreicn Exchange
Risk             :   To be borne by ONEP, RAD, RADEEF, RADEEM, RADEEMA,
RAK and RED
Financing Plan   :   IBRD          US$160.0 million
OECF/ADB      US$ 84.0 million
Government    US$ 6.5 million
RAD           US$ 25.0 million
RADEEF        US$ 4.6 million
RADEEM        US$ 1.9 million
RADEEMA       US$ 7.9 million
RAK           US$ 2.1 million
RED           US$ 18.0 million
ONEP          US$ 43.6 million
TOTAL US$353.6 million
This document has a restricted distribution and may be used by recipients only in the perform. ace
of their official duties. Its contents may not otherwise be disclosed without World Bank authoriation.


Econoic Rate
of Return            RAD           21%
RADEFF        18%
RADEEM        13%
RADEEMA       17%
RAK           10%
RED           13%
ONEP          12-21%
Povertv
"tecory              Program of Targeted Interventions
gtaff Apraisal
Reort               Report No. 12231-MOR
MaR                 IBRD 25095


MEMORANDUM AND RECOMMENDATION OF THE PRZSIDENT
OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
TO THE EXECUTIVE DIRECTORS
ON PROPOSED LOANS
TO THE '-NGDOM OF MOROCCO
AND TO THE OFFICE NATIONAL DE L'EAU POTABLE
FOR A FIFTH WATER SUPPLY PROJECT
1.         I submit for your approval the following memorandum and
recommendation on two proposed loans in the respective amounts of US$128.0
million and 32.0 million to the Kingdom of Morocco and ONEP (with the
Government guarantee) for the equivalent of US$160.0 million to help finance a
Fifth Water Supply Project. The loans would be at the Bank's standard
variable interest rate, with a maturity of 20 years, including five years of
grace. The whole of the prDceeds of the loan to the Kingdom of Morocco
(US$128.0 million) would be onlent to RAD, RADEEF, RADEEM, RADEEMA, RAK and
RED at the same above-mentioned terms. The project would be co-financed by
OECF and ADB.
2.         Background.  In the 1980s, the Goverrment sought to rationalize the
development of its scarce water resources and improve the provision of water
supply services in both urban and rural areas. Although these efforts led to
heightened concern over water scarcity and the strengthening of the
operational efficiency of the national bulk water production agency (ONEP),
the water sector is still facing institutional and financial issues.
Responsibility for water resource management is scattered among several
entities and the executive powers of the coordinating body, Conseil Sup6rieur
de l'Eau et du Climat, are limited. The financial performance and
institutional autonomy of the country's 16 municipally-owned water
distribution utilities (R4gies) have been deteriorating because of lack of
autonomy, accumulation of arrears from Government and local communities,
stagnation of water tariffs and poor performance of the R6gies, resulting in
unsatisfactory cost recovery. However, in 1993, the Government restored the
R6gies' autonomy and agreed on substantial water tariff adjustments and on the
settlement of all arrears. A shortfall in financial resources, together with
the lack of adequate cost-recovery mechanisms, have led to the postponement of
critical investments to enhance the efficiency of existing production and
distribution capacity with particularly negative impact on service levels for
low-income consumers. Currently about 90% of the urban population and 14% of
the rural population have access to safe drinking water. The proposed project
would address the sector's most pressing needs arising from the R&gies'
institutional and financial deterioration and inadequate provision of water
services to both the urban and rural poor. Longer-term problems related to
the management of water resources and demand, including improvement of data
monitoring and establishment of economic criteria for resource allocation
among competing demands, will be addressed through an ongoing joint Bank-
Government sector study (FY95) and a follow-up Water Resources Management
Project (FY97).
3.         Lessons Learned from Previous Bank Operations. The following main
lessons learned from previous Bank operations were taken into account in the
preparation of the proposed project:


-2-
a.   The main constraint to access of the poor to water services being
the cost of water house connections which currently has to be paid
upfront, the proposed project would Irovide for 128,000 social
house connections to be paid for in 60 equal monthly installments;
b.   Access of the rural population to potable water through community
waterworks is limited because of poor maintenance of waterworks,
which is essentially due to the lack of know-how and non-existence
of cost recovery. The project would provide for sensitization of
the rural population to assuming responsibility for operation and
maintenance and provision of equipment for rehabilitation and new
waterworks;
u. Only financially viable utilities can provide satisfactory water
services to the population. To enhance efficiency of water
utilities the proposed project wou3d provide for performance
contracts (protocoles d'accord) between Government and the water
utilities.
4.         Rationale for Bank Involvement. The proposed project fits into the
Bank's current country assistance strategy for Morocco. That strategy
supports Government efforts to deepen adjustment and reform, alleviate
poverty, strengthen public sector and natural resource management, and
encourage private sector development. Moroccan authorities recognize that
efficient and cost-effective water production and distribution systems, as
well as strong institutional management are critical to the country's overall
development. Based on long-standing relationships in the sector, the
Government has requested continued Bank assistance to achieve these objectives
both at the micro level for water distribution and, at the macro level, to
address intra-sectoral issues. In particular, the Government has requested
Bank advice throughout the current crucial transition period during which the
municipal water utilities (Rgies) are evolving into fully autonomous
agencies. This institutional evolution is taking place in accordance with the
recommendation of the R4gies' seminar jointly organized in 1992 by the Bank
and the Ministry of Interior. The Bank's continued involvement is fully
justified, given the important role that the water sector plays in promoting
sustainable economic development in Morocco.
5.         Prolect Objectives. The project's main objectives are to: (a)
assist the Government in developing a long-term policy on institution buiL.ding
and cost recovery of water services; (b) address the needs of tne poorest
population groups by improving water supply services in urban and rural areas;
and (c) restore the R6gies autonomy through the enforcement of the "protocoles
d'accord" to be made between Government and each participating Regie (RAD,
RADEEF, RADEEM, RADEEMA, RAK and RED) providing on the one hand, the
settlement of arrears owed by Government and local communities, tariff
adjustments in line with updated financial projections, and the gradual
shifting of the Government from the current "a priori" control of the R4gies
towards "a posteriori" review. On the other hand, they also provide for
achievement by the six participating Rdgies of satisfactory performance ratios
(technical, financial and commercial), tariff adjustment, cash generation,
works implementation by private contractors through competitive bidding and


- 3 -
implementation of socidl house connections to make water accessible to the
poor. The project will be therefore instrumental in alleviating the burden of
poverty and enhancing public sector and water resource management which are
among the objectives of the country assistance strategy.
6.         Project Description. The project would provide institutional,
operational, and financial assistance to restructure the Rdgies, strengthen
ONEP, and transfer operation and maintenance of rural water supply systems to
local communities. The project components include: (a) rehabilitation and
expansion of urban water supply systems operated by six R4gies, and upgrading
operational efficiency and management systems (US$187 million); (b)
rehabilitation and expansion of 18 semi-urban water supply systems and 7 water
production facilities operated by ONEP, and upgrading operational efficiency
and management systems (US$128 million); (c) meteorological data gathering
equipment (US$9 million); (d) a poverty alleviation component comprising
provision of equipment, technical assistance, and training for sanitary
education campaigns, water quality control, and disinfection of water in rural
areaui, as well as credit lines for social house connections. This poverty
alleriation component would provide access to safe wate:i to: (i) about 3
million rural inhabitants (US$12 million) and (ii) about 1 million people
living -In the fringe areas of Casablanca, Rabat-Sal6, F&s, Marrakech, Mekn&s,
Kenitra and in 18 ONEP centers through 128,000 social house connections (Us$3
million); and (e) consulting services and equipment to improve water resources
management (US$15 million).
7.         Project Cost and Implementation. The proposed project would be
carried out by RAD, RADEEP, RADEEM, RADEEMA, RAK, RED, ONEP, ESPD, HA, NMD and
WSD. The project cost is estimated at US$353.6 million equivalent excluding
taxes, duties and interest during construction with a foreign exchange
component of US$234.1 million equivalent (66%). The Bank would finance
US$160.0 million equivalent (64% of the foreign exchange and 4% of local
expenses or 45% of the total) and OECF and ADB would co-finance $84.0 million
equivalent (36% of the foreign exchange or 24% of the total). Water utilities
would fund $103.1 million equivalent of local expenses (or 96%), as well as
taxes and duties estimated at about $56.0 million and interest during
contruction estimated at $9.1 million. A breakdown of costs and the financing
plan are shown in Schedule A. Amounts and methods of procurement and of
disbursement, and the disbursement schedule (based on the country average
disbursement profile) are shown in Schedule B. A timetable of key project
processing events and the status of Bank Group operations in Morocco are given
in Schedules C and D, respectively. A map is also attached. The Staff
Appraisal Report, No. 12231-MOR dated October 29, 1993, is being distributed
separately.
8.         Project Sustainability. The proposed project has been designed to
enable the water utilities to become financially viable, which means in
particular full cost recovery including debt service, operation and
maintenance, as well as contribution of not less than 25% of investment
program. The proposed tariff adjustments in line with the long run marginal
cost (LRMC) would guarantee the efficient use of resources. Sustainability
would be enhanced by promoting privatization of some activities, e.g. the
subcontracting of billing and collection, and upgrading operational efficiency.


9.         Agreed Actions. The following stipulations agreed with Prior to
negotiations have been complied with: (a) settlement of 100% of Government's
arrears to the R4gies; (b) settlement of 33% of the local communities
(Collectivit6s Locales - CLs) arrears; (c) delivery to the Bank of the audit
reports of the 1991 accounts of RAD, RADEEF, RADBEM, RADEEMA, RAK and RED; and
(d) delivery to the Bank of an acceptable schedule for submitting the audit
reports of the 1991 accounts of the remaining 10 R6gies and of the 1992 and
1993 accounts of all the 16 R4gies. Furthermore, the Government and the six
participating R6gies (RAD, RADEEF, RADERM, RADEEMA, RAK and RED) agreed that
they would honor the commitments taken in the "protocoles d*accord", so that
the R4gies can attain full sustainability. The Government, the R6gies and
ONSP agreed also on a mid-term review to be jointly carried out with the Bank,
to assess how the performance ratios stipulated in the "protocoles d'accord"
and "contrat-programme", namely the network efficiency, working ratio and
tariff adjustments are achieved. It has further been agreed that any
necessary remedial measures would be identified and enforced, including
project restructuring, so that all objectives are fully attained at the end of
the implementation period. The current Government water sector strategy
concerning, in particular, water supply service levels to the urban and rural
populations and sustainability of water supply operations has been summarized
in an urban and rural drinking water suoply and sewerage sector strategy
letter from the Government to the Bank. The signature of "protocoles
d'accord" by the Government and the participating R4gies and the execution of
subsidiary loan agreements satisfactory to the Bank between the Government and
RAD, RADREF, RADEEM, RADEEMA, RAK and RED are cop,4-,tions of effectiveness.
10.        Environmental Aspects. An environmental analysis was carried out
by ONEP from October 1992 to January 1993 to assess the effects of -dditional
wastewater resulting from increased water volumes provided through the project
and to identify appropriate measures. This analysis showed positive results
in terms of public health and highlighted that appropriate measures are being
taken to minimize the effects of additional sewage volumes through the
implementation of sewerage works in the framework of the Sewerage and
wastewater Treatment Project currently unaer preparation. The project is
classified as Category B. Appropriate specifications to minimize
environmental disturbance during construction were identified through the
environmental analysis and are being included in the bidding documents.
11.        Poverty Alleviation. Extending infrastructure to areas where
poverty is prevalent provides an efficient method of benefitting the poor.
Extending social house connections to urban areas only partially served by
standpipes, and developing a nationwide water supply activity in rural areas
will improve the well-being of urban and rural poor and positively affect
their productivity.
12,        Benefits. The project would improve the R6gies' and ONEP's
operational efficiency, and provide adequate water services to the inhabitants
of the six cities and 18 centers where the participating R6gies are operating
and, where the total population is expected to reach 9.6 million people by the
year 2000, or 60% of the total urban population. Furtheriore, through the
project, unaccounted-for water would be reduced from current values of 22-44%
to 20-25*, sector institutions would be less dependent on already constrained


- 5 -
public budget financing, and waterborne diseases and infant mortality would be
significantly reduced. The project would benefit (i) the urban poor through
social house connections in low-income neighborhoods (para. 6), and in
particular women, who in more than 90% of cases are the ones in charge of
collecting water at standpires, saving them from 1 to 3 hours per day; and
(ii) the rural poor benefitting from the country-wide rural water supply
component (para. 6) through the rehabilitation of existing waterworks and the
creation of new water supply systems. Furthermore, the rural water supply
component would provide guidance in the operation and cost recovery of all
rural water supply facilities.
13.       Risks. The project would not pose any specific technical risks.
Execution of physical components would be straightforward. The risks mostly
involve the Governmpnt's long-term commitment to the stipulations of the
"protocoles d'accord" and in particular, the needed tariff adjustments.
However, the recent important tariff increases, the settlement of 100% of
Government's arrears and of 33% of the arrears of the CL's and the decision to
settle the remaining 67% of the arrears of the CL's in the next two years
(1994 and 1995) as well as the reinstatement of the R6gies' autonomy prove
that the Government is committed to the R4gies' sustainability. Technical
assistance and training under the project would reinforce the G"vernment's and
the R6gies' commitment to the needed reforms by identifying and enforcing the
implementation of procedures necessary for sound financial management and
sustainable autonomy. Technical assistance in implementing, operating, and
maintai .ing project works would also minimize technical risks.
14.        Recommendation. I am satisfied that the proposed loans would
comply with the Articles of Agreement of Bank and recommend that the Executive
Directors approve them.
Lewis T. Preston
President
Attachments
Washington, D.C.
October 29, 1993


KI?N9DOM OF MOROCCO                                Schedule A
FIFTH WATER SUPPLY PROJECT
BUMMARY FROJECT COST ESTIMATES ANO FINANCING PLAN
COST ESTIMATES (MID 199
(US$1=DH9)> *
DH Million -     -
Bas
COMPONENT                                       Total    La~al  Foreign    Cot     Total   Local     un
A. Casablance Water Utility - RAD               517.9   101.7    326.2       20     67.6     21.3     36.3
f. Fe Water Utility - RADEEF                   133.2    49.7     83.8        6     14.8      5.5      9.3
C. Meknus Water UtSty - RADEM                   8$.5     31.2    58.3        3      9.9      3.5      6.4
0. MarakchWaterUtlIty-RADEEMA                194.6    74.8    1198        7     21,3      8.3     13.3
E Kenitra Water UtllIty- RAK                    9.6     33.8     62.3       4      10.7      3.8      6.9
p. Rabat-Sa Watr lty - RED                    403.3   14.7     26          15     441.     18.      28,2
0. National Wat Produton UtNty - ONEP      1.004.4    334.4    -*i.4      37    111.6     372      74.4
H. Epidemiology and Sanitation Program
Dirctorate                                       37.0      2.1     34.0       1       41      0.2      3.9
1. HydraullosAdmInIstratlon                     110.0     41.6    68.4       4      12.2      4.6      7.6
J. National Metorology Directorate              64.2     1.1     63.1        2      7.1      0.1      7.0
K. Water and Sanitation Dlrectorate              68.0     5.0     51.0       2       8.2      0.0      s.6
Total ase Cot                              2.70.2   916.1   1,791.1    100     300.6   101.7    198.9
Total Physical Contingencies                 135.3     45.8     89.5       a      16.1     8.1     10.0
Total Price Contingencels                    314.0     45.8     89.6      13     37.9     12.7     25.2
Total Projet Cost                          3.182.5  1.076.2  2.106.3    118    353.6    119.8    234.1
PMaJF7PINANCING PLAN
-Million -         %e4             Landing Terme
I       .U36..          Proje~t
Code
IDRO Ian                                    1.40.0    160.0                46          20 yeare Including 6 yoars
of graoe at the standard
varable rate
Co-Lmnder Loens (OECF.AD)                       76.0     84.0               24          StandardOEF. AD b~r
Goverment                                        68.5     6.6                 2          Budgut
RAD                                             225.0    25.0                 7          Own Contibuton
RADEEF                                           14.4     4.6                 1          Own Contribuen
RADEEM                                           17.1      1.9                1          Own Cntibu O
RADEEMA                                          71.1     7.9                 2          Own Contrilbuln
RAK                                              18.9     2.1                 1          Own Contribution
RED                                             162.0    18.0                 5          Own Contribution
ONEP                                            302.5     43.6               12          Own Contributnn
TOTAL                                         p5gg6 ggg                   1gg
*       Excluding taxes and duties           (US$56.0 million) and interest during
construction (US$9.1 million)


Schedule B
Page 1 of 3
KINGDOM OF MOROCCO
FIFT WATER SUPPLY PROJECT
Amounts and Methods of Procurement Ag/
(US$ million)
ICB           LCB       Other           NBFAb/     Total
Cost
Prote.t Element
REGIES
(a) Pipelines & Civil Works             36.9          14.0                        1 E.3      53.2
(32.3)        (11.4)                                 (43.7)
(b) Supply and Installation of
equipment                            10.1          0.8          -              1.9       12.8
(26.3)          -                                    (26.3)
(c) Consultants, TA & training           -             -            3.4           -           3.4
(9.2)                     (9.2*
(a) Pipelines & Civil Works             28.2           3.3          *             2.5        34.0
(14.0)         (1.7)                                 (15.7)
(b) Supply and installation of equipment  5.0          2.8          -             -          7.8
(18.0)         (2.0)        -                        (20.0)
(c) Consultants, TA & Training           -             -            1.9                      1.9
(6.8)                     (6.8)
MINISTERIAL AGENCIES (ESPD, HA, ND, MSD)
(a) Pipelines & Civil Works              3.4           0.9          -                        4.3
(4.3)         (1.1)        -                        (5.4)
(b) Supply and installation of           0.9           0.2          -             -          1.1
equipment                           (17.4)        (1.2)         -                      (18.6)
(c) Consultants, TA and training         -             -            1.1           -          1.1
(4.3)                    (4.3)
Co-Financiers (OECF/ADB)                 *-                         -            84.0       84.0
TOTALS                                  196.8         39.4         26.7          90.7      353.6
Bank loans                             (112.3)       (17.4)       (20.3)           -      (150.0)
R6gies                                  47.0          14.8          3.4           4.2       69.4
ONEP                                    33.2           6.1          1.9           2.5       43.7
Government                               4.3           1.1          1.1            -         6.5
Co-financiers (OECF/ADB)                 -             -            -            84.0       84.0
a/        Amounts include contingencies.           Amounts in    (   ) indicate Bank
financing.
b/        NBF: not Bank financed


Schedule B
Page 2 of 3
KINGDOM OF MOROCCO
PIFTH WATER SUPPLY PROJECT
Bank Loan Disbursement Categories
(US$ million)
Category       Estimated  Estimated      Allocated   Percentages of
1-ota      Cost of        Amount of   Expenditures
cost       Components     Bank Loan   Financed by ank
funded byian
Ba"IS
I.   Civil works       156.3        109.0         60.0     ONEP, RAD       60%
and pipelines                                           RED            :65%
RADEEF, RADEEMA: 72%
RADEEM, RAK      78%
II. Supply and
installation
of equipment        50.6         36.0         27.0             75%
III. Supply of                                                  100% of FE
equipment           36.0         35.0         35.0          80% of LE *
IV. Consultants,
studies and                                                   100%
training            26.7         18.0         18.0
V.   Unallocated         -            -           20.0
TOTAL           269.6        198.0        160.0
Co-financing
(OECP, ADB)        84.0
GRAND TOTAL     353.6
* FE: foreign expenses; LE: 100% of local expenses (esx-factory cost) and
80% of local expenditures for other items procured locally.


schedule B
Page 3 of 3
KINGDOM OF MOROCCO
FIFTH WATER SUPPLY PROJECT
Batimated IBRD Disbursement:
US$ MILLION
FY           1994   1995  1996   1997   1998    1999   2000    2001
Annual        0.0   22.4   25.6  25.6   25.6    ..-.6  25.6     9.6
Cumulative    0.0   22.4  48.0   73.6   99.2   124.8  150.4   160.0


Schedule C
Page 1 of 2
KINGDOM OF MOROCCO
FIFTH WATER SUPPLY PROJECT
Timetable of Key Proiect Processing
Timetable of Events:
Time taken to prepare the Project          25 months
Prepared by                                ESPD (MOPH), HA (MOPW), NMD
(MOPW), WSD (MOI), ONEP, RAD,
RADEEF, RADEEM, RADEEMA, RAK,
RED, Consultants and Bank
assistance
Identification                             March 1991
Appraisal                                  April-May 1993
Negotiations                               October 1993
Planned Board Date                         November 1993
Planned Effectiveness Date                 January 1994


Schedule C
Page 2 of 2
KINGDOM OF MOROCCO
PIFTH WATER SUPPLY PROJECT
List of Relevant PCRa
Loan No.            Proiect                 PRC Date          PCR/PPAR No.
850-MOR       First Water Supply Project    December 16, 1981       3721
S-7-MOR       Engineering Loan to the
Sewerage Sector               June 14, 1984           5131
1724-MOR      Second Water Supply Project   June 8, 1990            8725


Sohedule 0
page10t2
The Status of Bank Gr0uo COeratons In Morocco
Statement of Bank Loans and IDA Credits
(AS of Seotember 30. 199M
Ug UV    Anfunt
Lain or    ReI                                                             <esscanosicaMdon
CdNo.                     dg pr~                                       Omk g     a   Undlbur
Sweunty-two ioaneantd Lvorediteuiydsbursed                             3.733.   4.10
Of which SAte. SECAa, and Program Loanela
277       1984   tOngdom of Moroco       Industrial Trade Ply(SAP)   160.40
a0        196    lngdom of Mrooo        Agrioulture Stor1            100.00
2104       1986   lUngdom af Mwrco      Industrial Trade Poy Adjuttment il 200.00
2004       1986   [Ungdom *f Morcco      Education Setr I             180.00
3001       1989   #Ongdom Øf Marocco      SAL i                         200.00
2820       1987   langdom af Mor~oco      PERL i                        236.68
8888       1988    lngdom of Moroco      Aguicutture Seator Ii         226.00
3483       1992   M0ngdom oMorlcco        SAL I                         275.00
Sub-total                                                           1539,06
Dibursin. Loane
2572       196     lOngdom øf Moroco     Health Development             28.40              4.88
267       1916    Port Authodty          Port Projet                   22.00              1.03
2779       1987   lGngdom of Moroca       Vocatonal Traning il         22.30              1.75
2798       1967   ONPT                    Telecommunicatlons l          118.00             22.84
2806       1987    SNOE                  Industrial Export Finance i     89.00              3.24
282       1987    Kngdom of Morcoco     National Water Supply          60.00             34.90
2828       197    lngdom af Morocc       Greater Casablanca Sewerage    0.00             38.85
2910       19~8    Ongdom øf Moro~co      Power Distribution             90.00             83.46
2954       1988   lGngdom ofMoroco        Smal & Medium irrigaon Il    23.00             18.87
3026       1989    "ingdom ofMoroooo      Rural Primary Educadon         83.00             41.22
3038       199    lGngdom of Moroco      Agriculture tension & Research  28.00           18.10
8048       1969 lngdom ol Morooco        Publio Administraion Loam      2300              13.35
3088       189    CNCA                   National Agricuture Credit   190.00              0.27
3121/22    1990   CiH                  .Housing Finance                  80,60              2.68
3136       1990   KGngdom ol Morocco      industrial Pinance            170.00             10.8
316       1890   ngdom ofMorocco       Forestry i                    49.00             41.63
3168       1990   lGngdom ol Morooco      Hlghway Seotor                 79.00             27.83
3171       1910    Ongdom of Morocc      Health Sect                  104.00             86.39
3262       1961   tQngdom,a Morooo       Rural Eectu~loation ti        114.00            114.00
3283       1991   IGngdom of Morooco      Port Sector                    38.00             26.34
3284       1991   OOEP                    PortSector                     99.00             79.41
3298       1991   KOngdom ol Morocoo      Rural 8aao £ducalon eveopment 146.00          142.0
3386      191   IGngdom ofMoroco        Financial Setor Dvelopent  236.00             10.47
340       1992    ingdom of Moroco       Aguiculture Seotor investment  10.00              6.88
3w57       1998   ingdom *f Moroco      Teecommunkoadone             100.00            100.00
3687       1998    Kngdom af Morocco      Scond Large øal. irrigation  215.00            21.00
3518121    198    Wngdom ol Morocco      Land Døvelopment              130.00            130.00
38616/17   19~3    Mngdom of Moroco       Municipal Finance I /         104.00            104.00
3647       1994   i0ngdom ol Moroco      Environment Tech. Assislance b  -M0              6g0
TOTAL                                                      6,861.49   4.16  1,411.A9
Of which has been repaid (only amortization)        1.617.46   8.74
Total hald by Bank and IDA                          4,604.04  36.42
Amount sold                                   20.11
of which repaid                               20.11
Total Undibursed                                                      1.411.ff
SAL. SECAL or Program Loan
la Approved ater FY80
ib  t yst igned
/c Not yeteffeetve                                                              M.fAt~imeriastachedD


page 2of 2
Statement of IFC inveatments in Morocco
(As ol Aunust 31.190=
Odginal ros Commitmnt
Rlea                                                                (US$Million>
lemr           ok~!f                 nfic    É~            Lan   fi        T~
1982    Banque Nationale pour   Development Finance             42.61    2.88     45.19
1978   le Dev. Eom. (BNDE)
1983
1988
1980    Soiet. Minere du EWu-  Mines                           12.99    2.f8     15.37
0affr (SOMIFER)
1G2     Cimentere Nouvelle     Cement Prdution                29.30    2.10     31.40
1988    de Casab~ana (CINOUCA)
1992
1985    fhitere Marocaine       Agroinduutry                     4.f7    -         4.97
de Trmneformation
(FRUMAT)
1987    Credit Immob~lr et     Tourism                         68.13    -        68.13
~oteller (CIH)
1987    Set Filature           Textle Factory                  8.28    1.81      4.89
(SE7AFIL
1980    Compagnie Maritime      Ferry Service                    4.30    -         4.30
(COMAR~a)
191    Cerame Afdque           Ceramice                         .47    1.70      517
Industries(CAI)
1982    CIMASF                 Cement                          18.89    -        1M.8
1992    Banque Commerciale de   8ankng                         12.00    -        12.00
Maro (8CM)
1992    Øanqu$ Marocaine        Eanidng                         12.00    -        12.00
du Commerce Exteroeur (BMCE)
1992    Credit du Maroc (CDM)   andng                          8.00    -         8.00
191    Wafabank                Banking                          8.00    -         8.00
1993   International de         Capital Market                   -                 4.10
Financement et de
Participaton (INTERFINA)
Totafgroes commitmente                                 222.64    14.57    237.21
Lese ancellatons, terminations, repaymente.
sale and exchange adjustmente                        48.97     4.06     63.03
Total commitmente held by IFC                          1787    10.51    184.18
ofwMoh undisbursed                                     5.14     1.fi      7.10
IFC net Doeo not inlude pautiipante from commercial bank


IBRD 25095
-36-
AGE                           MedOLL00 SN
MOROCCO                                                                                            d
FIFTH WATER SUPPLY PROJECT                                                                                              AL HOCEMA              NADOR
REGIES LOCAT    ON                                                                 Lormh.            CHAOUEN
Ksor El Kebi,
ATLANTIC OCAN
A~N>        0OIDAak
TAOUNATE(•
MOEREGIES
H HEADQUARTERS OF REGIES                                                                                                 RADEETA
.   PPOVINCE CENTERS SERVED BY REGIES                                             KENITRA          RADE                    TA
MOUNTAINS                                                                       So           -   " •
I$OHYET                                                                                KHEMISSET  MEKNES"\  RADEEF
RIVERS AND WADIS                                                          Skhå                                Sefro
FES PROVINCE CAPITALS*                                             CASABLAN
RABAT NATIONAL CAPITAL                                                      RA                                RNUMANL
PROVINCE BOUNDARIES*                                   Aumm
-.- INTERNATIONAL BOUNDARY EL ID
=  INTERNATIONAL BOUNDARY (APPROXIMATE)                                                      "IE KHENIFRA
Khmi OKHOURBGA
*Nmef~  of province is the soeo              Ouaii
,tfi  fpteaocpitol.
-32i, 2ttDolS
-\e                               BEN L ELALERAHDI
rnoDES SRARHNA                          ~RCII
Tomonar                                       AE-T --P ~  EA                                                            F
ESSAOUIRAo            vp MARRAKECH                     0
o   mi                        OAZLALTE
RAMSA
2_ _ _                  AGADIg     g
KILOMETERS                               8Meloul
TIZNIT                    OTATA                                                                      or            a
AUGUT 1993