IFC Subnational Investment Helps Improve Infrastructure in Morocco
In Morocco:
Joumana Cobein
Phone: + (212) 3765-2479
Fax: + (212) 3765-2893
E-mail: jcobein@ifc.org
In Cairo:
Riham Mustafa
Phone: 0020 2 461 9150 Ext. 306
E-mail: rmustafa@ifc.org
Morocco, May 19, 2008—IFC, a member
of the World Bank Group, has signed a risk- sharing agreement with four
local financial institutions to support a priority sewerage investment
of the municipal water supply and sanitation and electricity distribution
utility in El Jadida, Morocco. This will improve the living standards
of the people, while supporting development of tourism and other local
industries.
IFC’s involvement with local banks has allowed them to increase the maturity
of loans from a 10-year tenor to 15 years. IFC’s investment of up to 150
million Moroccan dirhams (about $20 million equivalent) will help rehabilitate
and expand the sewerage collection infrastructure and connect poorer neighborhoods
to the network for the first time. This will help reduce health hazards
due to the discharge of untreated sewage to surface and coastal waters
and the associated pollution of beaches. The loan will also help build
new treatment and discharge facilities that will bring El Jadida and surrounding
communities up to Morocco’s national standards.
“The investment, the first of its kind for IFC in the Middle East and
North Africa, supports a broader World Bank Group strategy to assist the
Moroccan authorities in facilitating a disciplined transition of municipalities
and their enterprises to market-based financing, without sovereign guarantees,”
said Joumana Cobein, IFC Country Officer in Morocco.
The agreement will provide incentives for local water utilities to improve
their financial and operating performance, helping them attract commercial
financing.
About IFC
IFC, a member of the World Bank Group fosters sustainable economic growth
in developing countries by financing private sector investment, mobilizing
private capital in local and international financial markets, and providing
advisory and risk mitigation services to businesses and governments. IFC’s
vision is that poor people should have the opportunity to escape poverty
and improve their lives. In FY07, IFC committed $8.2 billion and mobilized
an additional $3.9 billion through syndications and structured finance
for 299 investments in 69 developing countries. IFC also provided advisory
services in 97 countries. For more information, visit www.ifc.org.
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