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Press Releases

NR2000-8
June 9, 2000

Overseas Economic Cooperation Operation

JBIC PROVIDES LOAN FOR RURAL WATER SUPPLY PROJECT
IN MOROCCO
ODA Loan to the Government of the Kingdom of Morocco

Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Yasuda) signed today at its Head Office in Tokyo an agreement to provide an ODA loan totaling 2,462 million yen to the government of the Kingdom of Morocco for the country's Rural Water Supply Project (II). With this loan, JBIC's total ODA loan commitments to Morocco to date amount to 119,444 million yen for 16 projects.

This Project is part of the rural water supply project undertaken by the Moroccan government in the four provinces of Azillal, Beni Mellal, Khenifra, and Khouribga, which aims to provide a stable water supply to local residents through construction of water supply facilities that use wells as water sources, thus achieving better living conditions in rural areas. The proceeds of the JBIC's loan will be used to purchase equipment, materials and to undertake civil works for the project.

In Morocco social infrastructure development is lagging in rural areas compared with urban areas, and the difference of development level between them poses a major problem for the country's sustainable development and social stability. To reduce this difference, the Moroccan government has been undertaking a rural water supply development program through the Ministry of Equipment and the Office National de l'Eau Potable (ONEP) since 1996. Under this program about 11 million people in 31 thousand villages will gain access to water supplies across the country. This will increase the current low coverage of the population with water supply systems (only 20 per cent is connected to systems) and achieve a stable supply of water. This program has received financial assistance not only from JBIC, but also from the World Bank, KfW in Germany and AFD in France.

In parallel with this Loan, JBIC has also agreed on March 23, 2000, to extend an ODA loan totaling 5,004 million yen to ONEP of the Kingdom of Morocco for the country's Rural Water Supply Project (I). This ODA Loan is aimed to improve the water supply system in the three provinces of Fes, Safi and Tiznit, and it is also directed toward facilitating the rural water supply project undertaken by the Moroccan government.

(See Appendix for details.)

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