Members of the Department of Public Enterprises and Privatisation received a delegation from the African Development Bank (ADB) in charge of the Country Strategy Paper (CSP) mid-way review for 2007-2011, on February 10th, 2009.
This document sets out the programming of projects that will benefit from ADB`s financial support, and will serve as a reference frame for a specific period, for the financial cooperation between Morocco and ADB.
The present CSP is designed to support the Moroccan economy in setting up conditions to guarantee sustained and sustainable growth, job creation intended to ensure poverty reduction.
According to Mr. Nono J.S MATONDO-FUNDANI, ADB Resident Representative at the National Bureau of Morocco, this strategy, set up in close collaboration with the Moroccan government, is based on three fundamentals:
- the improvement of governance system.
- the development and upgrading of economic infrastructure and of businesses.
- the promotion of human development.
Mr. MATONDO-FUNADANI added: "We would like to assess ADB investment projects geared to the public sector to readjust our programmes according to current governmental priorities".
He then reviewed actions carried out in 2007 and 2008 in the CSP framework, as well as actions forecast for 2009. He pointed out that ADB had different funds destined to finance studies and/or technical assistance to investment projects.
For his part, Mr Abdelaziz TALBI, Director of DEPP, pointed out that to face an international economic climate marked by recession, speeding up public investment projects is a primary component of the Moroccan government`s strategy. He also reviewed the main investment projects undertaken by public enterprises, mainly that of OCP SA, Holding Al Omrane (HAO), the Moroccan Motorway Office, the CDG, the National Office of Drinking Water (ONEP), at its 10th project with ADB,?
Mr. TALBI also evoked sources of financing and pointed out that the financial situation of public enterprises is healthy, as demonstrated by their self-financing level. He added that the contribution of the Energy Development Fund and Millennium Challenge Corporation, together with projects of Emergency Plan and Maroc Vert Programme, would allow public enterprises to develop their investment programmes further.
As to privatisation operations, Mr. TALBI said that this was a process started in the nineties, and that had a positive impact on various sectors of the economy. Part of privatisation revenues were channelled to economic and social development programmes initiated by the Hassan II Fund. He added that a reorientation of this process towards opening of capital is underway, making minority share capital public, and towards Private-public Partnerships or Public-Public partnerships.
With regard to the reforms Morocco launched in the electricity sector, Mr. TALBI stated that in the present context, priority is given to securing the country`s supply of electricity and to modernising the sector.
ONE investment plan forecasts many projects, with a budget of MDH76 billion over the period 2009-2014. Additionally, and as part of the US $1 billion Energy Development Fund, an energy investment firm will be set up to promote new production capacity of electric energy, and notably renewable energy.
As to electricity distribution, Mr. TALBI indicated that a study is now underway as to the possibility of setting up multiservice firms (water distribution, electricity and sewage) covering wide geographic areas likely to attract investors. In this regard, Mr. MATONDO-FUNDANI stated that ADB could be of assistance to consolidate interconnection to promote a regional market and reinforce the national electric network.
Mr. TALBI also referred to ONE`s restructuring and said that the Office is neither a pension fund nor a compensation fund, and should, therefore, focus on its main mission.
Mr. TALBI subsequently raised the issue of external financing and stressed the importance of making sure public enterprises are able to implement projects prior to mobilising the necessary funds. It was, according to him, essential to strengthen managerial capacities in some public enterprises (human resources, management tools, information system) before embarking on large-scale projects.
Finally, with regard to the mobilisation of funds for PPPs , Mr. TALBI explained that Law n°54-05 relating to delegated management of public service, made provisions for launching PPPs.