FOM Newsletter July 2001
Morocco Week in Review
 July 7,  2001

World Bank Discusses New Country Assistance Strategy & Approves Two Loans.
Snake, scorpion bites, major causes of intoxication in Morocco
Drinking water utility calls for good usage of water
Morocco exempts barley imports from customs duties and VAT.
37% of Beaches are Unpolluted, Analysis.
Kuwaiti fund loans Morocco 50 mln for highway.
New Moroccan Highway Links. 
Morocco to publish public tenders on the internet
Most operations at Rabat child hospital made by video-surgery
Abu Dhabi fund loans Morocco $ 70 mln.
Morocco to Launch Bid for Three Fixed Phone Licenses.
France Loans Morocco 24 Mln Euros to Build Rural Roads
IAAF honors Morocco's Said Aouita.
Morocco reforms press code.

World Bank Discusses New Country Assistance Strategy & Approves Two Loans.

WASHINGTON, June 5, 2001--The World Bank's Board of Executive Directors last week discussed the new Country Assistance Strategy (CAS) for Morocco and approved a US$32.6 million loan to finance an Irrigation Based Community Development Program and a US$65 million adjustment loan to support reforms in Morocco's information infrastructure sector.  The new Country Assistance Strategy (CAS) for Morocco, discussed on May 31,aims to guide the Bank Group's overall program in the country for the next three years. During the Bank Board discussion, the Bank's Executive Directors emphasized the importance of the ongoing political opening, and commended the Government for the significant progress made in the past decade in achieving macroeconomic stability and liberalizing the economy.  Directors also welcomed the Government's increasing focus on poverty reduction and rural development.

On the other hand, members of the Board were concerned about the rise in poverty and income inequality, and the recent deterioration of fiscal performance. They broadly agreed that the main challenges facing Morocco were reinvigorating the stagnating economy and addressing rural poverty and high urban unemployment, which threaten the sustainability of Morocco's reform programs.  Directors emphasized the need to accompany political opening with a strong growth-oriented economic program, anchoring the Moroccan economy more firmly on the dynamics of international trade, while ensuring medium-term fiscal stability. 

The Country Assistance Strategy proposes a "base case" lending program that would remain at about the same level as during the last five years, at about $250 million per year, which would be divided into a core component focusing on poverty, unemployment and human development, and a sector reform support component. The core poverty component would comprise about three operations, totaling $150 million, per year.  These operations would support community-based rural development, education and literacy programs, employment generation and good public governance. The sector reform program would seek to support priority reforms by the Government through analytical and advisory work. Contingent on fiscal and sector reform, it could also include up to one adjustment operation of US$100 million per year.  

The CAS also envisions a 'high-case' scenario that would respond to the implementation by the Government of a package of macroeconomic, structural and social reforms having the potential to accelerate economic growth and the pace of poverty reduction. Under such a scenario, Bank financial assistance could reach up to $450 million per year.  The CAS for Morocco also outlines the assistance strategy for the International Finance Corporation (IFC) in its role to help improve the business climate, through efforts aimed at mobilizing financing for complex projects, providing innovative financial instruments, especially for small and medium-size enterprises, and supporting institution building in the financial sector.  

The Irrigation Based Community Development Program will serve as an entry point for the implementation of the Moroccan Government's new "2020 Rural Development Strategy" which calls for a more participatory, integrated approach to rural development. Under the leadership of the Ministry of Agriculture, Rural Development, and Water and Forests, the Program would seek to improve the incomes and quality of life of rural communities in 15 provinces over a 13-year period (2001-13), primarily through demand-driven, coordinated investments in small and medium scale irrigation and complementary community infrastructure, including rural roads, water supply/sanitation, electrification, health and education facilities. This project is the first "adaptable program loan" approved for Morocco, encompassing three phases over a 13 year period, for an overall program cost of US$242.4 million with Bank financing representing US$172.6 million. The first phase of the Bank loan approved last week by the Board is US$32.6 million. This loan will be disbursed as a variable spread and rate single currency loan, with a maturity of 20 years and a five year grace period. It is accompanied by counterpart financing from the Moroccan government of US$6.63 million and a US$3.2 million from the local communities.

 The Information Infrastructure Sector Development Adjustment Loan aims to: a) support the Government's program of privatization and liberalization of the telecommunications sector, extend services and strengthen the regulatory environment of the telecommunications sector; b) assist the Government in the formulation and implementation of a strategy for the use and development of information technologies; and c) formulate a national strategy for the postal sector, including the financial services provided through the postal network, which will serve as a basis for further specific reforms.

The World Bank loan amounts to US$65 million in one single tranche and will be disbursed as a fixed spread loan, with a maturity of 20 years and an eight year grace period.

Snake, scorpion bites, major causes of intoxication in Morocco

Snake and scorpion bites account for 25% of intoxication causes, followed by medicine, insecticides, says the poison-control center. After snake and scorpion bites, medicine intoxication make up 18% of cases, insecticides (11%), carbon monoxide (5.5%), traditional medicine (2.5%) and other intoxication caused by domestic chemical products. The figures were released during an exhibition held in Kenitra, 50 km north of Rabat, this July 4-6, part of an awareness campaign on intoxication held by the poison control center.

Morocco's drinking water utility (ONEP) called on Tuesday citizens and enterprises to avoid squandering and polluting drinking water made scarce by a drought season. ONEP told users it could increase the price of water in some dams-fed regions and reassures them that water quality will not be altered and will continue to be conform to national drinkable norms.  Morocco projects to invest 500 Million Dirhams (US$ 45.4 million) in water prospecting by 2004 while ONEP will earmark 11 million DH (US$ one million) to consolidate drinking water production and extend the supply network. The measures are part of efforts to alleviate effects of drought which has become a structural phenomenon and affected 90% of the territory as rain deficit ranged between 30 and 90%, he added, the state will support the transfer of water from regions with surplus to other which suffer water shortage.

The Moroccan government has decided to exempt barley imports from customs duties and the Value Added Tax between July 2nd and December 31. Minister of agriculture, rural development, water and forests, Moulay Ismail Alaoui, announced that the decision seeks to ensure normal barley supply to stock breeders in this drought season. The government's decision also means to reduce pressure on imported barley and increase the seeds reserves for next year's farming campaign.

RABAT - Thirty seven of Morocco's beaches are of good quality, according to analysis on water quality conducted by the national environment laboratory. Micro-biologic analyses show that 47% have a medium quality 11% are provisionally polluted and 5% are polluted.

The Kuwaiti Fund for Arab Economic Development granted on Thursday Morocco a loan worth US$ 5.7 million as a contribution to financing the Casablanca-El Jadida highway. The loan, extended at 4% interest rate is reimbursable in 20 years with a four-year grace period. The accord was signed by general manager of the Fund, Badr Mechari El Homeidi, and general manager of Morocco's highways company (ADM), Othman Fassi Fehri.  The loan will cover 38% of the highway total cost, estimated at US$ 136.3 million. It will finance a 79 km-long stretch of the highway. On the same occasion, the Fund general manager signed with Morocco's finance, economy, tourism and privatization minister, Fathallah Oualalou, the loan-guarantee convention. Meanwhile, Kuwait Investment Authority has entrusted to the Moroccan bank (SGMB) the management of all its funds invested in Morocco, worth some US$ 200 million.

RABAT (Reuters) - Morocco will spend 22 billion dirhams, or $1.85 billion, for the construction of 1,000 kilometers of expressways in the next 10 years, the official MAP press agency said Thursday. The agency said a 250-kilometer section would be built soon between the southern cities of Marrakesh and Agadir.

The Moroccan government is projecting to open a website dedicated to state procurements to enhance transparency and improve public life. Morocco's minister of social economy, small and medium size enterprises and Handicraft, in charge of the government general affairs, Ahmed Lahlimi, said the website will contain public calls for bids launched by administrations, state enterprises and local council and results. Lahlimi estimated state procurements operated in 1999 at 55 billion DH (about US$ five million).

Some 70 percent of operations are currently made by video-surgery at the Rabat child hospital, said Fouad Attaybi, a child surgeon. Video-surgery, which was recently generalized to Morocco, is very effective and helps avoid several side problems, including scars the doctor told MAP news agency. The technique was first used only at the emergency unit of the Avicenne hospital of Rabat. Some 4,000 children have been operated on by video-surgery since the introduction of the technique. Six operations are done per week (one per day) at the Rabat child hospital.

The Abu Dhabi (United Arab Emirates/UAE) Development fund on Wednesday loaned Morocco 700 000 dirhams, more than $ 70 million, to finance the construction of a road along the Mediterranean coasts. The loan accord was initialed Wednesday by economy, finance, privatization and tourism minister, Fathallah Oualalou, and the director of the UAE fund, Said Khalfan Ar-Romaiti. The Mediterranean road will be 520-km-long and will the northern city of Tangiers to the sea resort town of Saidia.

RABAT - Morocco said Wednesday it will launch next year a bid for the sale of two fixed phone licenses. The move will mark the end of the monopoly of the national phone operator Maroc-Telecom, the Telecom agency (ANRT) said. The first fixed line will be destined for individual users and the second will be exploited by firms and large enterprises. In 2003, Morocco will cede a third mobile phone license.

RABAT, July 04 - France will loan Morocco 24 million Euros to back the North African country's program to build rural roads, the French embassy in Rabat said in a release. The loan accord will be signed between the Moroccan agency for the development of northern zones and the French Development Agency. The loan will finance roads construction in several areas in northern Morocco.

The International Amateur Athletic Federation (IAAF) held Thursday a ceremony to pay tribute to the Moroccan athletics star of the eighties Said Aouita. The ceremony, held on the eve of the Rome Golden Gala, first phase of the athletics golden league, was chaired by IAAF interim President Lamine Diack of Senegal. Said Aouita was the first athlete ever in history to run the 5000 m race in less than 13 mn, when he covered the distance in Rome in July 1987 in a timing of 12:58.39. Winner of the Jess Owens trophy, the most prestigious world athletics distinction, Aouita is so far the only athlete in the world having won the IAAF Grand Prix three times, in 1986, 1988 and 1989. He is also holder of 44 successive victories in races from 800 m to 5000 in less than 26 months. He held five world records in 1,500 m, 5,000m, 2,000m, 3000 and 2 miles. Aouita told MAP the tribute ceremony in his honor is a tribute to Morocco and to all Moroccan athletes. Aouita and another Moroccan star athlete of the eighties, Nawal Moutawakkil (first Arab woman to hold an Olympic Gold medla in the Los Angles games of 1984), will be celebrated on July 7 by the Qatar-based Al-Jazira satellite TV channel. Aouita and Al-Moutawakkil were recently polled by the popular channel as the Arab athletes of the year.

A government council meeting, chaired by premier Abderrahmane Youssoufi, adopted on Thursday a draft law amending the press code Dahir (Royal decree). Briefing reporters on the amendments, Morocco's communication and culture minister listed a series of amendments, assuring that they were proposed to match progress in the Moroccan society and progress in democracy and human rights practices. He added the reforms are also dictated by the need of a better management of new information technologies, a good usage of its advantages while averting mis-usage. He said the new proposed amendments include: consecration of the freedom of publishing, edition and diffusion of books and publications, renewal of the right to information for all citizens, the right of all the media to have access to information sources without restriction, the obligation for the media and journalists to respect the constitution principles, law provisions, the code of ethics and observe accuracy and honesty in reporting. It also stipulates that authorities should deliver a provisional receipt soon after a new paper application is submitted and to deliver a final receipt within 15 days. Other reforms proposed include the need for all press bodies to guarantee transparency of their financial management, by publishing once a year details of their accounts. Banning a newspaper henceforth falls within the competence of justice in case of offenses mentioned in article 41 of the press code while the seizure of a paper by the interior ministry has to be surrounded by some guarantees, mainly substantiating the decision, and securing the right to resort to justice which has to make its ruling in 24 hours.  Imprisonment sentences were cancelled for several offences and reduced for others.

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