Signing ceremony of two loan agreements between Morocco and the IDB : 05/02/2013

Signing ceremony of two loan agreements between Morocco and the IDB

The Islamic Development Bank (IDB) granted two loans to Morocco for a global amount of 284.79 million USD (2.4 billion dirhams), for the implementation of hydropower and water drinking projects.

This signing ceremony was chaired, on the Moroccan side, by Mr. Nizar Baraka, Minister of Economy and Finance in the presence of Mr. Driss El Azami El Idrissi, Minister Delegate in charge of the Budget, Mr. Abdelaziz RABBAH, Minister of Equipment and Transport, Mr. Ali Fassi Fihri, Managing Director of the National Office for Electricity and Water, M. Ahmed AMZIL, Director of the Road Financing Fund , and on the IDB side , the event was chaired by Mr. Ahmed Mohammed Ali, Director of the IDB Group.

In his speech at the ceremony, Mr. Nizar Baraka welcomed the IDB efforts to finance socio-economic development projects in Morocco.

The first loan, amounting to 200 million USD (1.7 MMDH),aims to implement the hydroelectric complex M`dez El Menzelwith a capacity of 170 MW.

This complex consists of two hydroelectric dams associated with M`dez and AinTimedrine in Sefrou region that are part of the High Sebou equipment program.

The implementation of this complex, which is part of the national energy strategy for the enhancement of national resources and the development of renewable energy, will contribute to strengthening the country`s electricity supply in the best conditions of reliability.

The second loan, amounting to 84.79 million USD (730 MDH), concerns the project to supply eight provinces in Moroccowith drinking water, namely Marrakech, Essaouira, Al Haouz, Kalaat Sraghna, Chichaoua, Meknes, Zagora and FahsAnjra.

This project is part ofwidespread access to drinking waterprogram in rural areas and securing drinking water supply in urban areas. It aims to improve the living conditions of populations and secure environment, through supplying drinking water to a rural population of about 427.000 inhabitants and strengthening supply systems for an urban population of 261,000 inhabitants in 2030.

Note that the IDB is a multilateral financial institution created in 1975 by the Member States of the Organization of Islamic Conference to support economic and social progress through the financing of development projects. In this regard, the total outstanding granted by the IDB in Morocco from 2007 to 2012 exceeded 8.1 billion dirhams, which helped finance several projects especially in drinking water field, highways, agriculture and electricity, as well as technical assistance to financing foreign trade transactions.