Highlights

Conference on the Prospects of Public-Private Partnerships for Morocco

13/10/2008
Conference on the Prospects of Public-Private Partnerships for Morocco

On October 9th, 2008, the Ministry of Economy and Finance hosted a conference entitled Public-Private Partnership: What Prospects for Morocco.

This conference was moderated by high-ranking state officials with experience in successfully conducted operations in the PPP sector. Mr. Abdelaaziz Talbi, General Managing Director of State-owned Enterprises and Privatization at the MEF, Mr. Aboubaker Essedik Gueddari, Director of the Civil Engineering Department, at the Ministry of Agriculture and Rural Development, Mr. Hajjaji, Chairman of the board of the SODEA (Corporation for Agricultural Development), Mr. Mohammed Jamal Benjelloun, Director of ONP (National Office of Seaports), Mr. Mohammed Abeljalil, General Managing Director of Marsa Maroc (Corporation for Seaports Management).

In his keynote speech, Mr.Talbi reminded the audience of the underlying principle of PPP, the prerequisites as well as the different players involved in the Moroccan public sector liberalization process. Morocco, in Mr. Talbi`s opinion, boasts an impressive record of private public partnerships, at a time when several European countries such as France and England concentrate their liberalization efforts on social and non-lucrative services. Mr. Talbi further explained that PPP benefits are evident in improved service, cost rationalization, risk sharing and, above all, meeting deadlines.

Mr. Hajjaji, in his turn, presented the PPP experience in farming land, part of a policy which aims at liberalizing the national economy and upgrading the farming estate. Expectations from this plan can be summed up as follows:
- Better value creation for farming estate currently managed by state owned companies.
- Mobilization of private national and foreign capital.
- upgrading leading farming subsidiaries.
- Sustaining and creating jobs.

Two lots of land, 40,000 ha and 38,000 ha each, will be liberalized over two times. In each case, the liberalization will be carried out according to a specific consulting procedure (bid and show of interest). This partnership project entails a MD 12.2 billion investment, 9.3 of which is earmarked from national capital and will result in a 30% increase in the national yield for citrus fruit, and a 20% increase in the production of olives. The success of this operation prompted the extension of such a partnership programme, to include additional land over 700,000 ha, on a basis of 70,000 ha per year. This extension will be accommodated within the framework of the Morocco Green Plan.

Mr. El Gueddari then presented the PPP operation conducted in the irrigation sector in the Souss Massa Daraa region. This project brought together private investors who will address various issues such as co-financing, construction as well as irrigation water management over 30 years. Co-financing will amount to MD 432 million, and will account for 43% of the overall cost. The main benefits of such an operation include lower water cost for farmers, a better quality of service and a more efficient management of technical risks.

For his part, Mr. Benjelloun presented the PPP experience in the seaports sector , this partnership came as a result of the reform launched in 2004. Such an approach has increased the competitiveness of seaports by adapting services to traffic demand and providing adequate infrastructure. The PPP project launched in the case of MARSA Maroc drew clear lines of responsibility and communication in relation to the ODEP, and highlighted the core activity of the sector. This allowed enterprises operating in this area to enjoy wider prospects and diversify their activities. The main subjects of the discussion addressed the following issues:
- Characteristics of a standard PPP contract.
- The social aspect of PPP.
- Management of change in the wake of PPP.
- Extending PPP to social sectors.