Language: English
Original: French
PROJECT: Project to Upgrade Drinking Water Supply in the Rabat –
Casablanca Coastal Area
COUNTRY: Morocco
PROJECT APPRAISAL REPORT
Date: March 2010
Appraisal Team
Team Leader: Mr. B. BEN SASSI, Principal Water and Sanitation Engineer, OWAS.2
Team Members:
Messrs. H. KAMOUN, Consultant/Financial Analyst, OWAS.2
I. SAMBA, Consultant/Environment Expert, OWAS.2
M. ELOUAHABI, Water and Sanitation Specialist, MAFO
D. KISSI, Consultant/Public Utilities Economist, OWAS.2
Ms. R. COFFI, Procurement Expert, ORPF.1
Ms. K. BOURARACH, Consultant/Social Aspects Expert, OWAS.2
Sector Manager
: Mr. S. JALLOW, Division Manager, OWAS.2
Sector Director
: Mr. S. JALLOW, Officer in charge of Department, OWAS
Resident Representative: Ms. A. ABOU ZEID, ResRep, MAFO
Regional Director
: Mr. IS. LOBE-NDOUMBE, Director, ORNB
;
Peer Reviewers
- Mr. BA Mamadou Samba, Principal Agro-Economist, OSAN.1
- Mr. EL GHALI Mustapha, Consultant/Financial Analyst, FFCO.3
- Mr, HOURGAVYE Patrice, Senior Socio-Economist, OWAS.1
- Mr. M’BAYE Amadou El Hadji, Principal Water and Sanitation Engineer, OWAS.2
TABLE OF CONTENTS
Currency Equivalents, Fiscal Year, Weights and Measures, Acronyms and Abbreviations,
Project Brief, Project Summary, Logical Framework, Project Implementation Schedule. i - vii
I – Strategic Orientation and Justification .................................................................................1
1.1. Project Linkages with the Country Strategy and Objectives.......................................1
1.2. Justification for Bank intervention..............................................................................1
1.3. Aid Coordination.........................................................................................................2
II – Project Description..........................................................................................................3
2.1. Project Components ....................................................................................................3
2.2. Technical Options Adopted and Alternative Options Studied ....................................3
2.3 Project Type /Instrument.............................................................................................4
2.4. Project Cost and Financing Mechanisms ....................................................................4
2.5. Project Area and Beneficiaries....................................................................................5
2.6. Participatory Approach for Project Identification, Design and Implementation ........6
2.7. Consideration of Bank Group Experience and Lessons Learnt in the Project Design 6
2.8. Key Performance Indicators........................................................................................7
III – Project Feasibility ..............................................................................................................7
3.1. Economic and Financial Performance.........................................................................7
3.2. Environmental and Social Impact ...............................................................................8
IV – Implementation ................................................................................................................10
4.1. Implementation Arrangements..................................................................................10
4.2. Monitoring.................................................................................................................11
4.3. Governance................................................................................................................12
4.4. Sustainability.............................................................................................................12
4.5. Risk Management......................................................................................................13
4.6. Knowledge Development..........................................................................................13
V – Legal Framework ..............................................................................................................14
5.1. Legal Instrument .......................................................................................................14
5.2. Conditions Associated with the Bank’s Intervention................................................14
5.3. Compliance with Bank Policies ................................................................................15
VI – Recommendation .............................................................................................................15
Annex I. Country Development Indicators..............................................................................I
Annex II.
Table of ADB Active Portfolio in the Country (as on 31 January 2010) ........... II
Annex III. Key Related Projects Financed by the Bank and Other Development Partners of
the Country ............................................................................................................................ III
Annex IV. Map of Project Area...........................................................................................IV
Currency Equivalents
March 2010
UA 1 =
UA 1 =
UA 1 =
MAD 12.3222
EUR 1.12939
USD 1.53258
Fiscal Year
1 January – 31 December
Weights and Measures
1 km
1 km2
1 ha
1 ml
1 m3
1 m3/d
1 hm3
l/s
inh./ha
lpd
=
=
=
=
=
=
=
=
=
=
kilometre
=
square kilometre
=
hectare
=
linear metre
cubic metre
cubic metre per day
million cubic metres
litres per second
inhabitants per hectare
litre per person per day
1000 m
1000 m2
10 000 m2
Acronyms and Abbreviations
AFD =
ABH =
DWS =
DWSS =
CSP =
GTZ =
French Development Agency
Water Basin Agency
Drinking Water Supply
Drinking Water Supply and Sanitation
Country Strategy Paper
German Technical Cooperation Agency
for Development
KFW =
Kreditanstalt für Wiederaufbau (German
Development Agency)
LYDEC =
Casablanca Lyonnaise des Eaux
MDG =
Millennium Development Goal
WHO =
World Health Organization
ONEP =
National Drinking Water Authority
Water SAP = Water Sector Adjustment Programme
ESMP =
Environment and Social Management
Plan
SME =
Small and
Medium Size Enterprises
i
MAD =
PNEEI =
ERR =
IFRR =
SMBA =
EU
=
REDAL =
Moroccan Dirham
National Irrigation Water
Economization Programme
Economic Rate of Return
Internal Financial Rate of Return
Sidi Mohamed Ben Abdellah Dam
European Union
Delegated Management of
Electricity Distribution, DWS and
Liquid Sanitation Services of
Rabat/Sale
Project Brief
Client
BORROWER:
National Drinking Water Authority (ONEP)
EXECUTING AGENCY:
National Drinking Water Authority (ONEP)
GUARANTOR:
Moroccan Government (Ministry of Economy and
Finance)
Financing Plan
Source
Amount (UA)
Instrument
ADB
ONEP
179.64 million
41.67 million
ADB Loan
TOTAL COST
221.31 million
-
Important ADB Financing Information
Loan Currency
EUR (80%) and USD
(20%)
Improved variable
margin loan
EURIBOR / LIBOR
Nil
Nil
6 months
60 months
10.7%
MAD 1 264 million
16.8%
MAD 1 859 million
Type of interest*
Interest rate margin*
Commitment charge*
Other charges*
Tenor
Grace period
IFRR, NPV (baseline scenario)
ERR (baseline scenario)
*where applicable
Time Frame – Main Stages (expected)
Approval of Concept Note
Project Approval
February 2010
May 2010
Effectiveness
Completion
Last Disbursement
Last Reimbursement
October 2010
December 2013
December 2014
2030
ii
PROJECT SUMMARY
1.
The Project to Upgrade Drinking Water Supply in the Rabat-Casablanca Coastal
Area in Morocco consists in strengthening the drinking water supply to cities located along
the Rabat-Casablanca stretch (Rabat, Casablanca, Tamesna, Temara, Mohammedia,
Bouznika, Benslimane, etc.) as well as nearby urban and rural centres. This area is witnessing
significant urban and tourism development. The Project, which costs UA 221.31 million, will
require an implementation period of 48 months (2010-2013).
2.
The project is in line with Morocco’s new national water strategy, the second thrust
of which concerns the satisfaction of the country’s water needs and support of its socioeconomic development. It was designed on the basis of the priority needs adopted by ONEP
in its contract programme with the Moroccan State for the 2008-2010 period. Furthermore,
the project is consistent with the second pillar of Morocco’s CSP related to the development
and upgrading of economic infrastructure and enterprises.
3.
The project comprises a “production” component with water pumping station, a raw
water delivery pipe and a water treatment station, and a “transport” component with a treated
water main. It will strengthen the drinking water production and supply system in an area
whose current drinking water supply facilities will be saturated by 2013. Preliminary and final
engineering studies as well as environmental impact assessments have been conducted for the
two components of the project.
4.
In priority, the project will benefit the population of the cities concerned and
neighbouring urban and rural centres. As regards water supply, the project will enhance and
improve the quality and quantity of the drinking water supply to about 5 million people as
from 2014 (about 700 000 in rural areas), and will enable ONEP as producer and distributor,
and the private operators “LYDEC and REDAL”, as distributors, to support demand by the
population of the areas concerned up to 2030 (when the population in question is projected to
exceed 8 million inhabitants, with about 1 million in rural areas).
5.
Project implementation is being accelerated mainly because some neighbourhoods
of Casablanca were hit by drinking water shortages in the summer of 2009. ONEP’s decision
to propose to the Bank to part finance this Project stems mainly from the Bank’s experience
and proven comparative advantage in carrying out this type of project (involving urgent
operations in medium and large cities), as demonstrated by the implementation of the latest
Bank-funded projects in Morocco’s drinking water and sanitation sector.
6.
The Project to Strengthen Drinking Water Supply in the Rabat-Casablanca Coastal
Area in Morocco is technically feasible, financially profitable and economically viable, and
has significant socio-economic benefits. Measures to mitigate the risks of this project
(classified under Environmental and Social Category 2) were factored in so as to ensure its
sustainability at the environmental and social levels. Project implementation will consolidate
the country’s programme to enhance and secure DWS infrastructure. This project is a
significant contribution by the Bank to efforts of the Moroccan Government to ensure
sustainable supply of drinking water to the Kingdom’s urban and rural population. The
project’s financial rate of return (FRR) stands at 10.7% and the economic rate of return (ERR)
at 16.8%.
iii
RESULTS-BASED LOGICAL FRAMEWORK
Hierarchy of Objectives
Goal
Improve the socio-economic and health
conditions of the population by securing
drinking water supply to urban and rural
centres.
Project Objective
Strengthen
the
drinking
water
production and supply system in the
Rabat-Casablanca coastal area.
Expected Results and
Timeframe
Impact (Long term - 2030)
1. Rate of access to drinking
water
in
urban
centres
maintained at its current level.
2. Rate of access to drinking
water in rural centres increased.
3. Poverty reduced at the
national level.
Reach
(Target Population)
- Urban and rural
population of
Morocco
Effects (Medium term - 2015)
1. Drinking water production
system secured and reinforced
for the cities concerned.
2. Access to drinking water
increased
for
the
rural
population of the provinces
concerned.
- Urban population
of the cities and
centres concerned.
- Rural population
of the provinces
concerned.
- Private operators
distributing water in
the cities concerned
Performance Indicators
Tentative Targets
and Timeframe
- Rate of access to drinking water in
urban areas.
- Rate of access to drinking water in
rural areas.
- Rate of access in urban areas
maintained at 100% in 2030.
- Increase in the rate of access in
rural areas from current 87% to
95% in 2030.
- Water-borne diseases reduced to
the minimum in 2030.
- Proportion of women increased
from current 29% to over 40% in
2030.
- Prevalence rate of water-borne
diseases.
- Proportion of women in
productive activities in the country
(including agricultural activities).
- Rate of access to drinking water
for the urban population in the cities
concerned.
- Rate of access to drinking water
for the rural population of the
provinces concerned.
- Rate of maternal mortality (caused
by water-borne diseases).
- Rate of infant and child mortality
(caused by water-borne diseases).
Sources: ONEP, Boards, National
Statistics.
Project Resources and Activities
Outputs (Short term - 2013)
1.
Put in place technical support for
monitoring and supervising works.
2.
Procure land and conduct the
necessary geo-technical tests.
3.
Award contracts for goods, works
and services.
4.
Carry out reinforcement works of
the drinking water production
systems of the area concerned.
1. New water pumping station
and new raw water delivery
pipe built.
2. New water treatment station
built at Oum Azza.
3. New BR3 treated water
supply main up to Casablanca
built.
4. Existing BR1 and BR2
supply mains rehabilitated.
- Urban and rural
population.
- ONEP and private
operators.
- Consultancy firms
and contractors.
- Equipment
suppliers.
1. Additional capacity of pumping
raw water from the SMBA dam.
2. Additional water treatment
capacity of the DWS system for the
Kenitra-El Jadida area.
3. Additional treated water supply
capacity up to Casablanca.
4. Quality of water distributed.
Sources: Acceptance report, study
reports,
progress
reports,
supervision missions and reports of
the CE.
iv
- Maintenance of the rate of access
in urban areas in the cities
concerned at 100% in 2015.
- Increase in the rate of access in
rural areas in the provinces
concerned from current 87% to
above 90% in 2015.
- Number of deaths reduced from
more than 227 currently to less than
50 per 100 000 births in 2015.
- Number of deaths: contribute to
reducing from the current 40 to less
than 15 per 1000 inhabitants in
2015.
Assumptions/Risks
Assumptions
- Integrated and sustainable water resource
management.
- Government’s commitment to pursue the
water and sanitation sector development
programme and sector reform programmes
(Water SAP PNEEI).
Assumptions
- Implementation of the new national water
sector strategy.
- Implementation of the Health Ministry’s
2008-2012 strategy.
Risk
- Slippage in maintenance, servicing and
renewal of the water distribution and
sanitation system.
Mitigative Measure
- Implementation of the action plans of the
DWSS sector stakeholders (ONEP, boards
and private operators) to extend the water
distribution and sanitation network and
improve the operating conditions of this
infrastructure.
In 2013
Risk:
1. Additional raw water pumping - Availability of water resources in quantity
flow by 5m3/s (for an additional and quality (drought, etc.).
population of about 3 million Mitigative Measures
inhabitants) and laying of a 2 000 - Implementation of action plans under the
mm diameter pipe along a linear new national water strategy.
distance of 5.5 km.
- Support for water sector reform and
2. Additional capacity of water integrated water resource management
treatment by 5 m3/s.
(through Water SAP co-financed by the
3. Laying of a new 2 000 mm Bank).
diameter pipe on a linear distance of
73 km and rehabilitation of existing
1 400 mm to 1500 mm diameter
pipes on a linear distance of 2 km.
4. Quality of water distributed
compliant
with
WHO
and
Moroccan standards.
PROJECT IMPLEMENTATION SCHEDULE
v
REPORT AND RECOMMENDATION OF BANK GROUP MANAGEMENT TO THE
BOARD OF DIRECTORS CONCERNING A PROPOSAL TO GRANT A LOAN TO
MOROCCO FOR THE TENTH DWS PROJECT
Management submits the following report and recommendations on a proposed loan of EUR
162.31 million and USD 55.06 million (about UA 179.6 million) to the National Drinking
Water Authority (ONEP) to finance the Project to Upgrade Drinking Water Supply in the
Rabat-Casablanca Coastal Area in Morocco.
I.
Strategic Orientation and Justification
1.1.
Project Linkages with the Country Strategy and Objectives
1.1.1
The new national water strategy in Morocco (Annex A) is based on three thrusts: (i)
meeting the country’s water needs and supporting its socio-economic development; (ii)
appropriate use and management of water resources; and (iii) sustainable management of
water. This new strategy seeks to strengthen the national water sector policy, by focusing on:
(i) far more ambitious objectives for sustainably meeting the country’s water needs and
offsetting the effects of global warming; (ii) forcing a radical change in behaviour in terms of
resource use and management through an integrated management of demand and resource;
and (iii) fostering genuine long-term management of water (national visibility, political
commitment, public and private financing). The new water strategy will help to support
Morocco’s long-term development by meeting the needs engendered by economic growth,
accompanying major projects launched and protecting the country from the effects of global
warming.
1.1.2
In line with this national strategy, ONEP’s strategic plan (ONEP is the prime actor in
the drinking water and sanitation sector) lays special emphasis on the following three areas:
(i) generalizing access to drinking water for the population as a whole; (ii) active intervention
in the liquid sanitation sector; and (iii) sustainability and protection of existing infrastructure.
The Bank’s strategy in Morocco for the period 2007-2011 is built on three pillars: (a)
strengthening the governance system; (b) developing and upgrading economic and corporate
infrastructure; and (c) promoting human development. The mid-term review mission of this
strategy confirmed the first two pillars as the Bank’s areas of intervention in Morocco for the
period 2009-2011.
1.1.3
This project is in conformity with the second pillar of the CSP relating to the
development and upgrading of economic and corporate infrastructure, and falls within the
framework of the third focus area of the ONEP strategy concerned with sustaining and
protecting existing infrastructure. The project is also consistent with the Bank’s medium-term
strategy (2008-2012) which places the infrastructure sector high on the agenda.
1.2.
Justification for Bank intervention
1.2.1
The project was designed on the basis of the priority needs adopted by ONEP in its
Contract Programme with the Moroccan State for the period (2008-2010), in view of the
imminence of the saturation point of the production and supply system of the cities concerned
(2013). Its implementation was accelerated especially after a number of neighbourhoods in
Casablanca faced drinking water shortages in the summer of 2009. ONEP’s decision to
propose this project to the Bank is driven principally by the Bank’s experience and
comparative advantage in carrying out this type of project (with urgent operations affecting
medium and large population centres), as proven by the implementation of the latest projects
funded by the Bank in the drinking water and sanitation sector in Morocco. This track record
1
has been further consolidated in recent years with the presence of the Bank’s field office
(MAFO) in Rabat.
1.2.2
Primarily, the project will benefit the population of the cities concerned and those of
the nearby urban and rural centres. In terms of water supply, it will enhance and improve the
quantity and quality of the drinking water supply of about 5 million people as from 2014
(including about 700 000 in rural areas). It will also enable ONEP (as producer and
distributor) and the private operators “LYDEC and REDAL” (as distributors) to meet the
trend of demand of the population in the areas concerned by 2030, projected to exceed 8
million people (including 1 million in rural areas). Furthermore, the project will help to
consolidate MDG 7 concerning access to drinking water since the overall rate of access to
drinking water in Morocco (urban and rural) will exceed 90% by 2015.
1.2.3
In August 2009, the Government of Morocco formally requested the Bank to finance
the project. This report was prepared based on data collected and works done during the
project preparation and appraisal missions that took place in July and October 2009,
respectively.
1.3.
Aid Coordination
1.3.1
The Government carries out the development of the sector with support from a
number of bilateral and multilateral donors. Morocco’s key development partners in the water
and sanitation sector are the African Development Bank (ADB), the World Bank (WB), the
Islamic Development Bank (IsDB), Japanese International Cooperation Agency (JICA), the
European Investment Bank (EIB), the European Union (EU) and various European donors
(AFD, KFW, GTZ, Belgium, Spain, etc.), the Arab Fund for Economic and Social
Development (AFESD), the US Agency for International Development (USAID) and
Canadian Cooperation.
1.3.2
Overall, the coordination of various donors in the sector is through periodic
exchanges and during review and supervision missions in which sector-related information is
shared and the progress of the respective programmes and projects financed discussed with a
view to harmonizing operations. It is worth noting with regard to the Bank’s operations in the
drinking water and sanitation sector in Morocco that the Bank has remained the Kingdom’s
leading donor during the last five years and accounts for 22% of financing as shown in the
table given as Annex III.
1.3.3
The donors are coordinated through a water theme group co-chaired by AFD and the
EU. This theme group meets regularly (2 to 4 times every year) in Rabat with an agenda that
includes: (i) discussing developments in the sector; (ii) acquainting themselves with the
country’s policy and strategy by inviting officials from the line Ministry; (iii) familiarising
themselves with each other’s strategy; (iv) learning about each donor’s operations; and (v)
coordinating donor operations in support of different adjustment programmes (for instance,
the last national water sector reform programme which receives parallel funding from the
ADB, the World Bank and the European Union).
1.3.4
ONEP has an investment plan which is outlined in its Contract Programme with the
State of Morocco for the period 2008-2010. It coordinates the financing of this programme in
consultation with its traditional donors. The main purpose of coordination between the various
donors and ONEP is to maintain ONEP’s financial balance, which is the sole guarantee for
attracting financing to the DWSS sector.
2
II.
Project Description
2.1.
Project Components
2.1.1
While raising the level of the SMBA dam in 2006 (which increased its capacity from
480 to 975 million m3), a new water intake structure, a headrace tunnel and a link pipe
between the tunnel exit and the existing water pumping station were built. These facilities will
be used as headrace structures for carrying raw water to the facilities envisaged by this project
(the new planned pumping station on the dam’s downstream which will discharge water to the
planned water treatment station at Oum Azza). The project components are described in the
following table.
2.1.2
Table 2.1: Project Components
Name of Component
1
Reinforcement of DWS
systems of the RabatCasablanca coastal area
2
Technical support
Total, including
contingencies
Cost Estimate
(UA million)
217.46
3.85
Description of Components
Laying of a 2nd suction line;
Construction of a new raw water pumping station (Q
= 5 m3/s – Hmt = 140 m) ;
Construction of a new raw water discharge pipe (Ø
2000 mm on a linear distance of 5.5 km) ;
Construction of a new treatment station;
Construction of a new BR3 treated water supply main
(Ø 2000 mm on a linear distance of 73 km) ;
Rehabilitation of two existing BR1 and BR2 treated
water supply mains (Ø 1400 mm to Ø 1500 mm on a
linear distance of 2 km).
Studies, works control and supervision
221.31
2.2.
Technical Options Adopted and Alternative Options Studied
2.2.1
This project was identified as the most appropriate alternative by different DWS
master plans of the Rabat-Casablanca coastal area, which examined the different service and
interconnection scenarios between the existing regional water supply systems at the level of
the Bouregreg Basin and the Oum Rbia Basin, based on integrated water resource
management and investment optimization. The option adopted consists in reducing surface
water uptake at the waterworks in the Oum Rbia Basin and resorting to more abundant use of
the water of the Bouregreg Basin which still has harnessing potential (Sidi Mohamed Ben
Abdellah (SMBA) dam). The DWS Upgrade Plan for the Rabat-Casablanca coastal area is
therefore limited to the following two options:
A – Construction of a new independent production system starting from the SMBA
dam (option adopted);
B – Extension of the current Bouregreg water production system (option rejected).
3
Alternative Option Contemplated and Cause of Rejection
Alternation Option
Extension of the
Bouregreg drinking
water
production
system
Brief Description
- Extension of the existing raw
water pumping station;
- Extension of the existing water
treatment station;
- Construction of a new treated
water tank;
- Laying of a new supply main.
Cause of Rejection
- In case the water pumping or treatment
station stops even for a few hours (during
works), no alternative option is proposed to
supply the Rabat-Casablanca coastal area,
even partially.
- Risk engendered by the DWS of a very wide
area (Rabat-Casablanca) from just one
station (breakdown, power cuts, etc…).
2.2.2
Once the decision was taken to build a new independent water production system,
the preliminary and final design studies were prepared by independent consultancy firms and
approved by ONEP. The options selected were based on the final designs; these are rational
and optimal technical options aimed at covering the shortages at lower cost. Details of the
technical options are given in Annex C.3.
2.3
Project Type /Instrument
This is an investment project to be financed jointly with ADB and ONEP resources.
Unlike past projects with ONEP which all comprised several independent sub-projects and
were spread over several geographic areas (in particular, the 8th, 9th and 10th DWSS
projects), this project concerns only one drinking water production and supply system which
will exclusively benefit the coastal area from Rabat to Casablanca.
2.4.
Project Cost and Financing Mechanisms
2.4.1
The total project cost, net of taxes and customs duties, is estimated at UA 221.31
million. It comprises a provision of 7% for physical contingencies, 2% for foreign exchange
price escalation and 3% for local currency price escalation. The cost estimate is based on final
design studies and the provisions are estimated on the basis of the project preparation status
and practice on similar projects.
Table 2.2
Cost Estimate by Component [in UA million, net of taxes and customs duty]
Components
Reinforcement of DWS system
Technical support
Total base cost
Provision for physical contingencies
Provision for price escalation
Total Project Cost
Foreign
Exchange Cost
150.90
3.41
154.31
10.56
3.02
167.89
Local
Currency Cost
48.61
0.00
48.61
3.37
1.45
53.43
Total Cost
199.51
3.41
202.92
13.93
4.46
221.31
%
Foreign
Exchange
75.6
100.0
76.0
75.8
67.6
75.9
Note: The exchange rates used are indicated in the introduction of this report (Page (i)).
2.4.2
The Project will be financed jointly by the Bank and ONEP. The Bank will fund the
entire foreign exchange costs of the project estimated at UA 167.89 million and 22% of local
currency costs estimated at UA 11.75 million, both amounting to UA 179.64 million. This
amount represents 81.2% of the estimated project cost, net of taxes and customs duty.
4
Table 2.3
Sources of Finance [amounts in UA million]
Sources of Financing
ADB Group
ONEP
Total Project Cost
Foreign Exchange
Cost
167.89
0.00
167.89
Local Currency
Cost
11.75
41.67
53.43
Total Cost
% Total
179.64
41.67
221.31
81.2
18.8
100
Table 2.4
Project Cost by Expenditure Category [amount in UA million]
Expenditure Categories
Goods
Works
Services
Miscellaneous (*)
Total base cost
Provision
for
physical
contingencies
Provision for price escalation
Total Project Cost
Foreign
Exchange
Cost
65.01
85.89
3.41
0.00
Local
Currency Cost
Total Cost
% Foreign
Exchange
13.66
22.37
0.41
12.17
78.67
108.26
3.82
12.17
82.6
79.3
89.3
0.0
154.31
48.61
202.92
76.0
10.56
3.37
13.93
75.8
3.02
167.89
1.45
53.43
4.46
221.31
67.7
75.9
(*) Acquisition of the necessary land for the works and laying of pipes.
Table 2.5
Expenditure Schedule by Component [amount in UA million]
Components
Upgrade of DWS system
Technical support
Total base cost
Provision
for
physical
contingencies
Provision for price escalation
Total Project Cost
2010
2.00
0.24
2.24
0.15
2011
59.85
1.02
60.87
4.18
2012
79.80
1.36
81.16
5.58
2013
57.86
0.79
58.65
4.02
0.05
2.44
1.34
66.39
1.79
88.53
1.28
63.96
2.5.
Project Area and Beneficiaries
2.5.1
The project area lies between Morocco’s two large cities – Rabat and Casablanca.
This area is considered as the most densely populated and urbanized, and is witnessing a real
economic, tourism and industrial boom (60% of the national industrial fabric, the Bouregreg
valley project, the Azur de Bouznika station, etc.). The area also has major basic
infrastructure that are vectors of development (motorway, railway, airports, etc). The Rabat
pole comprises mainly the population centres of Rabat, Salé, Bouknadel, Temara, Skhirat,
Sidi Yahia de Zaers and Rommani, while the Casablanca pole comprises mainly the
population centres of Casablanca, Mohammedia, Bouznika, Benslimane and Aïn Aouda.
2.5.2
The project beneficiaries numbering about 5 million in 2014, will exceed 8 million in
2030, with one million in rural areas. They are concentrated in Casablanca (60%), Rabat
(12%) and Sale (15%) and distributed between the geographical poles mentioned above. The
main socio-economic characteristics of the beneficiaries are given in Annex B8 (§ Social
Analysis).
5
2.6.
Participatory Approach for Project Identification, Design and Implementation
2.6.1
During Bank preparation and appraisal missions, several meetings were held at the
central and local levels with all stakeholders, namely ONEP, private operators involved in
drinking water distribution, local councils, the Bouregreg Water Basin Agency (ABH) and the
State Secretariat for Water and the Environment, to note their respective concerns and take
them into account in project design and implementation. ONEP will ensure that the ongoing
resettlement operations organized by the municipality are carried out under the best
conditions.
2.6.2
In addition to different sensitization and communication campaigns organized by
ONEP and thanks to which the population was informed about project characteristics and
objectives, ONEP will also ensure, prior to the commencement of works, that the local people
are informed via their councils and/or local authorities about the nature of such works, any
possible damage and corresponding compensation, and the need for them to get organized in
order to enjoy benefits (part-time jobs, sale of products on the project sites, etc). Thereafter,
the contractors must maintain such consultation with the resident population throughout the
duration of works. The communication should relate mainly to: (i) the nature and period of
works; and (ii) precautions to be taken regarding the movement of machines.
2.7.
Consideration of Bank Group Experience and Lessons Learnt in the Project Design
2.7.1 The implementation performance of recent projects with ONEP is considered
satisfactory on the whole. ONEP has a very sound understanding of Bank policies and
procedures, and the studies conducted by the Authority are of good quality. The main
recommendations of the completion reports of previous projects, and in particular the last
three (5th, 6th and 7th ), are summarized as follows: (i) reinforce technical support and envisage
its presence until project completion; and (ii) strengthen project supervision missions
(especially in terms of the number of experts) to ensure better monitoring of project
implementation. These recommendations were taken into account in the last three ongoing
projects financed by the Bank in the sector (8th, 9th and 10th DWSS projects) and will also be
taken into account in this project, especially with the presence of the Bank’s Country Office
in Rabat (MAFO). In 2005, OPEV conducted a post-evaluation of the performance of Bank
operations in Morocco over the 1996-2004 period. The post-evaluation concluded that lending
operations (physical investments) performed well, while Bank assistance via non-lending
activities (studies) and institutional reform programmes were considered less satisfactory.
Unlike some autonomous boards which still suffer from uncontrolled costs, the projects
carried out by ONEP do not pose any problem of return on investments, especially drinking
water production and supply projects of large population centres (as is the case for this
project).
2.7.2
The 10 projects financed by the Bank (all completed except for the last two which
are still ongoing) helped to improve the harnessing, supply and distribution of drinking water
as well as wastewater sanitation and treatment services. The Water Sector Adjustment
Programme (Water SAP) helped in implementing an institutional and regulatory framework
for integrated water resource management to address the expected challenges of securing and
supplying drinking water in the country. These projects concerned the main towns of the
Kingdom nationwide (Marrakech, Tangier, Tetouan, Beni Mellal, Settat, Kenitra, Essaouira,
Ouarzazate, Khouribga, Tan Tan, etc.) and helped to protect access to drinking water in urban
areas which stands at about 100%, and to increase the rate of access to drinking water in rural
areas which rose from 14% in 1990 to about 87%. The sanitation access rate also improved
from under 50% in 1990 to more than 65% currently.
6
2.7.3
Based on these achievements, the main lessons learnt from the partnership between
the Bank and ONEP concern the need to build the monitoring/evaluation and post-evaluation
capacity of ONEP staff (particularly those in regional directorates). A project partnership was
initiated in that regard between OPEV, the Audit Department and ONEP following the
mission conducted by OPEV in December 2009, on the basis of which an action plan spread
over 18 months was prepared. Activities proposed under this plan will be geared towards
assisting ONEP to put in place an evaluation policy, a system of internal organization and
management of appraisal missions and to build the monitoring/evaluation and post-evaluation
capacity of its management staff.
2.8.
Key Performance Indicators
2.8.1
In the long term (2030), the key project performance indicator is the drinking water
access rate in urban and rural areas, and particularly in the project areas. The urban access rate
will be maintained at 100%, while in rural areas, the rate will increase from the current 87%
to 95% in 2030. Furthermore, the project will contribute to significantly reduce water-borne
diseases (currently at less than 10 cases per year) and increase the proportion of women in
production activities (from the current 29% to above 40% in 2030) by seizing opportunities
offered by new projects in the tourism and industrial sectors along the area stretching between
Rabat and Casablanca (project area).
2.8.2
In the medium term (by 2015), the project will help to maintain the drinking water
access rate at 100% in urban areas and increase the rate in rural areas from the current 87% to
90%. The project will contribute to maintaining the drinking water access rate at 100% by
supplying an additional quantity of drinking water that is commensurate with the evolving
needs of the Rabat-Casablanca region. In other words, if the project is not implemented, the
drinking water access rate will drop by a few points in the area concerned.
2.8.3
In the short term (by 2013), the project will guarantee an additional flow of 5m3/s of
water pumped, treated and supplied from the SMBA dam.
III.
3.1.
Project Feasibility
Economic and Financial Performance
Table 3.1
Key Economic and Financial Data
IRR : 10.7% - NPV: MAD 1 264 million
ERR: 16.8% - NPV: MAD 1 859 million
NB: See Annex B7 for detailed calculations
3.1.1
This is a structuring project which seeks to increase current production (Bouregreg
complex) to meet the needs of the area lying between Rabat and Casablanca, taking into
consideration the dimension involving securing DWS by transferring production facilities to a
new site. The project has multiple financial and socio-economic benefits. It will enable ONEP
to not only consolidate its production base and financial indicators but also to implement its
development strategy aimed at meeting future demand for drinking water in the RabatCasablanca area, the Kingdom’s largest development pole at the administrative, urban,
cultural and socio-economic levels. The project will also have an immediate impact on the
creation of part-time and full-time jobs, better profit-sharing among different economic
agents, serving as catalyst for the implementation of new large-scale tourism and townplanning projects such as the Bouregreg valley and Bouznika tourist complex, not forgetting
7
its induced effects on all economic activities and the standard of living of the urban and rural
population.
3.1.2
The internal financial rate of return (IFRR) of the project stands at 10.7%, with a
NPV of MAD 1 264 million, based on a discount rate of 7%. Sensitivity tests were conducted
according to the following possible situations:
Event
•
•
•
•
•
Impact on the IFRR
10% increase in investment cost
10% drop in demand
10% increase in energy cost
Combination of all three events
10% increase in demand
:
:
:
:
:
9.9%
10.3%
10.6%
9.4%
11.5%
3.1.3
The various IRR sensitivity tests for scenarios of poor performance show levels that
are above the weighted average rate of the investment cost estimated at 7%. The sensitivity
test whereby the performance is in line with project expectations and a 10% increase in
demand raise the IRR to 11.5%. This scenario seems the most probable since the project
offers sufficient delivery capacity for all additional demand during the first years of its
operation. In fact, the project is capitalistic and its design forms an inseparable block of all its
components, ruling out any partial or gradual implementation. Profitability is spread over
time.
3.1.4
The economic rate of return (ERR) stands at 16.8%. This rate is calculated on the
basis of the same financial return data plus the most quantifiable benefits represented by the
value of working days generated during project implementation and from the water-fetching
chore (in terms of time saved and used for more useful ends, particularly in rural areas).
3.1.5
The project is financially profitable and economically viable as shown by the rates of
return indicated above and the trend of ONEP’s structure and financial management
parameters.
3.2.
Environmental and Social Impact
Environment
3.2.1
The project is classified under environmental and social category 2 of the Bank. It
has “no significant negative and irreversible environmental and social impact or one that
might significantly affect environmental and social components considered sensitive by the
Bank or the borrowing country”. In fact, the project has only “specific impacts at the project
sites which can be minimized by applying appropriate mitigative measures”. The analysis of
the project components and activities, especially earthworks, civil engineering works and the
putting in place of a suitable sludge management system in the station show that the project
has no significant negative impacts. Added to this are the project’s expected positive outputs
from a social and public health point of view. Two impact assessment reports were submitted
(one on the production aspect and the other on the water transport aspect) which were
supplemented during the appraisal missions. It was agreed that the Environment Division in
ONEP’s Environment and Sanitation Department will, in collaboration with officials,
supervise works falling within the sphere of the Technical and Engineering Directorate (DTI).
8
Climate Change
3.2.2
Climate change in Morocco affects mainly water resources which are already scarce
owing to the semi-arid climate of the region, characterized by very low rainfall that is also
very irregular in time and space. Climate change has aggravated extreme phenomena, giving
rise to increasingly longer dry spells interspersed with episodes of brief and violent rains. In
the last three decades, the Kingdom has faced 20 dry years with 3 dry spells each lasting four
consecutive years. Although no official statistics exist that describe and corroborate the
impacts of climate change, water resources have shrunk overall by about 10 to 20%.
3.2.3
This aspect was taken into account in the project by ensuring firstly that the
Bouregreg Water Basin Agency (ABH) efficiently manages the available water of the SMBA
dam from which the DWS upgrade will be implemented, and which also offers the guarantee
of project sustainability. Secondly, some project activities incorporate water saving processes
such as water recycling in the treatment station and the rehabilitation of existing BR1 and
BR2 pipes. Apart from the project, the country has an adaptation strategy being implemented
in zones of high water stress which, among other things, is based on the treatment and re-use
of wastewater to water golf courses; the promotion of drip irrigation; the improvement of the
efficiency of the drinking water distribution system with a national output objective of 80% in
2015 so as to preserve substantial volumes of treated water and; lastly, seawater desalination.
Gender
3.2.4
The project offers great opportunities to effectively contribute to the promotion of
equality between women and men (EWM) in target areas in terms of involvement in
economic life. These areas host a sizeable portion of industrial (60% of national activity),
tourism and service activities known traditionally to use female labour. The steady and
permanent availability of sufficient quantities of water will enable women to seize
opportunities offered by new projects in the tourism and industrial sectors or for the creation
of their own income-generating activities (IGA) in synergy with other programmes (e.g.
National Human Development Initiative – NHDI). This will help to increase the number of
active women and thus bridge the gender gap in economic activities. Today, out of 38.5% of
active persons in the region, 70.1% are men and barely 2.9% are women (the target is to reach
40% in 2030).
3.2.5
Furthermore, to be in conformity with the Moroccan Government’s policy
orientations and the Bank’s guidelines, the project will adopt a gender-based approach to
ensure that the needs and interests of different groups are taken into account during the project
implementation phase and beyond (See Annex B8 Table: Mainstreaming Gender in Project
Activities: Cross-cutting Actions and Monitoring Indicators).
Social
3.2.6
The project will strengthen drinking water supply in densely populated areas (for
example, the average annual rate of increase is 1.54% for the project area and 5.29% for the
town of Temara) and help to improve the living conditions of 33% of the country’s urban
population. Overall, the project beneficiaries will exceed 8 million inhabitants in 2030. The
project will also ensure sufficient quantities of water to industrial and tourism enterprises in
the area which represent 60% of the national industrial activity.
3.2.7
Securing water supply to all these towns and villages will have a positive impact on:
(i) improving the hygiene and health conditions, thereby making it possible to consolidate the
gains of the Ministry of Health in terms of rolling back water-borne diseases like typhoid
fever and viral hepatitis; (ii) bringing relief to the current pressure on public water points, thus
9
reducing the waiting period for supply during peak hours or the summer months; (iii)
extending water supply without restriction and/or cuts to new towns and neighbourhoods
under construction; (iv) maintaining the economic momentum of the Rabat-Casablanca area;
(v) creating over 3 000 part-time jobs; (vi) creating SMEs for which water is the constraining
factor and which will generate new full-time jobs and help to reduce poverty; and (vii)
improving the quality and conditions of school enrolment by connecting water to schools (See
the convention between ONEP and the Education Ministry). The “no-project” scenario might
lead to a social and economic crisis in the area, perhaps even in the country.
3.2.8
The negative social impacts of the project are minor and transient like the risk of
spread of STDs especially HIV/AIDS. Mitigative measures and their costs are specified in the
ESMP.
Forced Resettlement
3.2.9
Twenty-five (25) households of the “Squila” village (“douar”) who occupied the
downstream right-of-way of ONEP and who form part of a set of squatter settlements of 6,000
households, were resettled through an ongoing operation whose costs is borne by the
municipality as part of the national slum-clearing programme. No resettlement operation has
been envisaged under this project.
3.2.10 Land necessary for the installation of the water treatment station and the raw water
delivery pipe will be expropriated for public utility for the DWS and procedures for the
expropriation of these private lands are underway (the landowners already expressed interest
in selling the land and expropriation costs were included in the project cost). For their part,
agricultural activities will be interrupted only partially on the right-of-way of the delivery pipe
since the farmers, though compensated, will still be authorized to cultivate crops annually
after the works.
IV.
Implementation
4.1.
Implementation Arrangements
4.1.1
ONEP is the project executing agency. It is well heeled in Bank procedures, having
already successfully implemented several ADB-financed projects. The Development Pole
Central Directorate is responsible, through the Technical and Engineering Department, for
implementing and monitoring the project. It has adequate material and human resources to
carry out the project on schedule. The Technical and Engineering Department will be
responsible for managing all the technical aspects of the project, in close cooperation with the
Supplies and Procurement Department for the procurement of goods, services and works, with
the Finance Department for the accounting and financial management of the project and
general coordination with the ADB, and with the Department of Sanitation and the
Environment for monitoring the mitigative measures concerning the environmental impacts of
the project. The Regional Directorate of the Atlantic Coast will support the day-to-day
management of the works.
4.1.2
The Technical and Engineering Department, which oversees project technical
management, will designate a project coordinator for the implementation and management of
all the components. Moreover, a Consulting Engineer will be recruited to supervise and
inspect works under the component related to project technical support.
10
4.1.3
All goods, works and consultancy services financed with Bank resources will be
procured in accordance with the Bank’s Rules of Procedure for the Procurement of Goods
and Works or, as the case may be, its Rules of Procedure for the Use of Consultants using the
standard bidding documents of the Bank for international competitive bidding (ICB) and
short-list, and using the procurement documents of ONEP as revised and amended by the
Bank for national competitive bidding (NCB). ONEP, through the Supplies and Procurement
Directorate, will be responsible for all contracts as described in detail in Annex B5. The
resources, capacity, expertise and experience of ONEP are presented in detail as Annex B5.
The contracts award plan featuring in Annex B5 was prepared and discussed with ONEP.
4.1.4
The ex-post review procedure was authorized for the earthworks contract of the water
pumping and treatment stations (UA 3.9 million) under the specific conditions defined in Annex
B5. The borrower requested and obtained the Bank’s approval for advance action on
procurement (AAP) for: (i) consultancy services for technical support, and (ii) rehabilitation of
existing BR1 and BR2 lines.
4.1.5
Disbursements will be made in accordance with the provisions of the Bank’s
disbursement manual. ONEP’s Finance Directorate, which is responsible for the financial
management of the project, is familiar with Bank rules of disbursement. ONEP will use the
different disbursement methods specified in the disbursements manual.
4.1.6
ONEP will keep separate financial accounts for the project based on data retrieved
from its IT system, to allow for identification and monitoring of expenditures by component,
expenditure category and source of financing. Project financial accounts will be audited once
a year by an audit firm recruited by ONEP for 3 consecutive years based on terms of
references agreed between ONEP and the Bank, and which take into account the external
audit requirements for projects financed by the African Development Bank Group. The audit
reports will be submitted to the Bank within six months following the end of each fiscal year,
in accordance with the provisions of the General Conditions Applicable to Loan Agreements
and Guarantee Agreements of the Bank.
4.2.
Monitoring
4.2.1
The physical implementation of the project will cover a period of 48 months, from
2009 to 2012. This time-frame is considered reasonable, taking into account the conventional
nature of the works and ONEP’s experience in similar works.
4.2.2
ONEP, the executing agency, will assume prime responsibility for monitoring the
project implementation and will prepare, in accordance with the method of presentation
recommended by the Bank, quarterly progress reports of project implementation covering all
aspects of its outputs. In particular, the reports will assess the project implementation status,
the expenditure, commitments and disbursements by component and source of financing, the
major problems encountered as well as the recommended solutions. Beyond the
implementation period and during the operation phase, ONEP has appropriate structures for
monitoring the project impacts; it will establish database, references and statistics for
monitoring and evaluating various performance indicators, in accordance with ONEP standard
models.
4.2.3
The Bank will monitor project implementation through supervision missions, ONEP
activity reports and financial statements. The presence of the Country Office in Morocco
(MAFO), with a water and sanitation expert, will help to improve project implementation
management and monitoring, while providing all the required assistance, particularly as
regards Bank rules and procedures for project implementation, procurement and disbursement
11
procedures, and project technical and financial management. At the end of the project, ONEP
will prepare a project completion report. Thereafter, the Bank will prepare the project
completion report and the project performance evaluation report.
4.2.4
The detailed project implementation schedule is presented at the beginning of this
report. The completion of the project is scheduled for December 2013. The proposed project
implementation schedule is summarized below:
Period
Stages
Monitoring Activities/Feedback Loop
2008 - 2009
Q1 2010
May 2010
Q3 2010
- Q1 2011
Q4 2010
- Q2 2011
2010 – 2011
2010 – 2013
2010 – 2013
August 2013
December 2013
Final design
Consultation of CE
Approval of the loan
Issue of BD for works
Approval of design by ONEP
Invitation to bid through AAP
Board of Directors of the Bank
Prepared by ONEP and verified by the Bank
Bid appraisal
Prepared by ONEP and verified by the Bank
Award of contracts
Execution of works
Monitoring of works
ONEP completion report
ADB completion report
Prepared by ONEP and verified by the Bank
By contractors and verified by ONEP
By the CE and verified by ONEP
Prepared by ONEP
Prepared by the Bank
4.3.
Governance
4.3.1
ONEP is closely attentive to strengthening management and organizational
procedures, as reflected by the new organization put in place to gradually decentralize its
activities with a view to endowing the regions with far-reaching autonomy. The first measures
concerned the devolution of essential functions such as studies, works, human resource
management and management control. The separation of production and service-related tasks
is in the implementation phase, the purpose being to foster greater proximity and visibility in
terms investment and commercial management.
4.3.2
In light of the reliability and efficiency of strategic and operational management
tools available the ONEP level (State-ONEP contract programme, internal performance
contract, SIONEP system, post-evaluation and quality management system, etc.), the
governance-related risks are low. Similarly, the reliability and efficiency of the control,
organization and, internal and external audit system has earned ONEP the privilege of moving
in May 2006 from an a priori control by the State to support control, reserved for entities with
proven competence in internal auditing, optimal management of resources and budget
implementation, and regularity of expenditure. In June 2009, ONEP initiated a study to
strengthen its internal audit system and put in place an overall risk management strategy. This
study is in its final phase. It plans to carry out a general diagnosis of the internal audit system,
identify the strengths and weaknesses of the system and propose improvements at the
organizational, procedural and operational level.
4.4.
Sustainability
4.4.1
Project sustainability depends mainly on ONEP’s capacity to implement the project
as well as monitor and maintain the facilities that will be put in place. ONEP has an
appropriate set-up as well as sufficient qualified technical staff who can operate and maintain
the drinking water supply systems of the cities concerned. As shown by some ONEP financial
projections, adequate financial resources will be generated and will cover the recurrent costs
related to the operation and maintenance of each of the structures to be put in place.
4.4.2
The sustainability of drinking water supply from the SMBA dam depends on several
factors: the preservation of water quality, the right balance between abstraction (water
12
removal and losses from infiltration and evaporation, and the useful volume of the lake) and
supply (which depends on rainfall and climate change). All these factors are managed by the
Bouregreg Water Basin Agency (ABH) so as to perpetuate the resources of the storage dam
(see Annex C1).
4.4.3
Project sustainability also depends on the sound management of water distribution
systems by ONEP and the two private operators that distribute water to Rabat and
Casablanca. This management is reflected in the performance indicators of networks
mentioned in ONEP annual reports and the two operators as well as satisfaction of their
clients (Annex C2). The water tariff policy seeks to reconcile the interests of consumers and
those of stakeholders so as to guarantee service sustainability. The tariffs are based on a
national equalization system that makes it possible to establish social equity. The progressive
rate system accommodates low income-earners and incites heavy consumers to use potable
water more economically. Under the State-ONEP Programme Contract revised periodically
which entrenches the objective of service sustainability, the DWS in rural areas and
sanitation benefit from targeted subsidies to ensure ONEP’s financial balance.
4.4.4
Lastly, project sustainability will be guaranteed by the reforms and programmes
initiated by the Government of Morocco particularly through the Water Sector Adjustment
Programme (Water SAP) co-financed by the Bank, the World Bank and the European Union,
and the National Irrigation Water Economy Programme (PNEEI). These reforms, most of which
have already been implemented, will lead to integrated water resource management, the
protection of water basins from erosion, the rehabilitation of DWS distribution and irrigation
systems to reduce losses, the promotion of new irrigation techniques to save water and, lastly, the
introduction of adequate tariffs based on economic cost.
4.5.
Risk Management
4.5.1
Possible project risks concern the preservation and sustained availability of water
resources, the integrated and optimal management of these resources and the political will on
the part of the Government to continue ongoing reforms.
4.5.2
The conservation and integrated management of water resources is one of the major
concerns of the Water SAP measures co-financed by the Bank, the European Union and the
World Bank. These measures define quality standards for surface water and water intended
for DWS. These standards fix the threshold values for water discharged into the sanitation
systems and the natural environment as well as the values for liquid discharged from different
industrial and handicraft sectors. ONEP services have ensured the sustainable availability of
resources which will guarantee the drinking water supply of the project area (Annex C1).
4.5.3
Concerning the second risk, the political will on the part of the Government to
continue the reforms is increasingly affirmed with the implementation of the conditions listed
in the Water SAP and the programme of reforms, thanks to support from the World Bank in
the form of a Water Sector Development Policy Loan (DPL) and a new European Union
support programme (under study). It is also corroborated by the adoption of a new water
strategy and its implementation plan.
4.5.4
Socially, there are no risks that can hamper the project outputs. The civil society and
the project beneficiaries are sufficiently involved in the design of this project and express
their commitment to easing its implementation.
4.6.
Knowledge Development
4.6.1
Project implementation will enrich ONEP’s experience in executing and operating
drinking water supply and sanitation projects in urban and rural areas. ONEP’s involvement
13
in integrated water resource management, the participation of various population segments
and their sensitization to the choice of projects are obvious gains for the project.
4.6.2
The project implementation approach will seek the involvement of the maximum
number of personnel in the design and application of technical options, the optimization of
investments and the rational use of water, the adoption of technical options adapted to the
environment of the different project components and reconciling environmental, financial and
socio-economic interests.
4.6.3
ONEP, through its website, will disseminate its experience within the country and
beyond its borders. Its training centre will play a knowledge dissemination and research role,
as recognized by the WHO. The dissemination of experience will further confirm the status of
ONEP as a DWSS sector benchmark in Africa having close links with universities, research
centres and similar bodies throughout the Continent and beyond, and collaboration geared
towards sharing knowledge and know-how. The Bank will definitely benefit from it for the
orientation of its future DWSS sector operations, and will share the experience from this
project with the other units within the Institution.
4.6.4
Technical support will be an instrument of assistance and transfer of knowledge and
lessons learnt in monitoring and supervising the environmental and social aspects. Technical
support will include an environmentalist who will help ONEP to properly monitor and
evaluate environmental and social indicators. S/he will enable the transfer of knowledge
through the design of a monitoring and surveillance guide and the necessary tools for this
work which is new to ONEP. All the documents and tools produced for the environmental and
social component will be disseminated on the ONEP website.
V.
Legal Framework
5.1.
Legal Instrument
This is an ADB loan agreement.
5.2.
Conditions Associated with the Bank’s Intervention
The granting of the ADB loan shall be subject to the following conditions:
Conditions precedent to effectiveness
Effectiveness of the loan agreement shall be subject to its signature.
Conditions precedent to first disbursement
i)
Provide the Bank with evidence of appointing the Project Coordinator whose
qualification and experience shall be deemed acceptable beforehand by the
Bank.
Other Conditions
i)
Submit to the Bank, before commencement of the works of each operation, the
appropriate supporting documents showing occupancy of each of the pieces of
land concerned;
14
ii)
Submit to the Bank, at the end of each quarter, a quarterly environmental and
social report based on the implementation of the environmental and social
management plan approved by the Bank. The report could form part of the
quarterly project implementation report.
5.3.
Compliance with Bank Policies
5.3.1
It is recommended that above-ceiling approval of UA 100 000 to 3.9 million per
fixed contract be granted for a posteriori review in accordance with the Bank’s “Guidelines
on the Application of a Posteriori Review Procedure to Certain Contracts”.
5.3.2
The project is in conformity with all other applicable policies, in particular the
Bank’s policies, guidelines and procedures on environmental and social management. It is a
category 2 project. The ESMP summary was prepared and the cost of implementation of
mitigative measures was included in the project cost.
VI.
Recommendation
It is recommended that an ADB loan not exceeding a total amount of EUR 162.31
million and USD 55.06 million (about UA 179.6 million) be granted to ONEP with State
guarantee. The loan will be used in financing 81.2% of the total project cost, net of taxes and
customs duty.
15
Annex I
Country Development Indicators
I
Annex II
Table of ADB Active Portfolio in the Country
(as on 31 January 2010)
II
Annex III
Key Related Projects Financed by the Bank and Other Development Partners of the Country
1.
The list of key projects financed by the Bank and other development partners in the DWSS sector is given as Annex A.
2.
The table of distribution of the key donors’ interventions in the DWSS sector in Morocco as at October 2009, is given below (in EUR
million).
III
Annex IV
Map of Project Area
LEGENDE
KEY
Axe
concerné
par le projet
Situation
Project
Areagéographique
des
projets d'AEP rurale et
d'Assainissement
Major
citiesvilles
concerned
by the
Principales
concernées
par
le projet
project
IV