Morocco: OBA Subsidies to Water & Sanitation

Connections in Poor Peri-urban Areas

The GPOBA pilot and the full scale INMAE project in the Greater Casablanca

Christophe Cluzeau (LYDEC)Alain Mathys (Suez Environment)

Background: LydecBackground: Lydec

• 30 years concession contract started on August 1st, 1997

• Management of 3 public services : • water• sewerage• electricity

• Delegated authority : Regional Authority of Greater Casablanca

• Total population : 4,5 million

• Population without adequate access to water and sewerage : close to 1 million (145,000 households)

in urban areas

in rural areas

INMAE objective :INMAE objective :household connections household connections

for for 145,000 families before 145,000 families before

20102010

INMAE project is integrated into the National Initiative for Human Development

(INDH)

Types of low income Types of low income settlements settlements

Urban

Rural

The GPOBA pilotThe GPOBA pilot2 neighborhoods :

- Lahraouiyine (5.580 households)

- Lemkensa (7.996 households)

Value added of the Value added of the GPOBA pilotGPOBA pilot

• Understand the issues and put the problems on the table (progressive land tenure and ownership regularization, recognition of the population in illegal settlements, financing needs, etc.)

• Clarify the role of all parties and allocate clear responsibilities on how to solve these problems

• Strengthen the partnership between the parties, for and beyond the pilots, based on shared development objectives

• Adapt LYDEC’s organization to meet INMAE objective (70 staff dedicated to the project)

Total households

GPOBA coverage

Relocation to social housing 30 000

Relocation to equiped lots 25 000

On site upgrading (access to services) 85 000 6 200

Challenges ahead:Challenges ahead:INMAE in INMAE in CasablancaCasablanca

145 000 Hhs

Before 2010 :

Relocation is integrated in publicly funded programs

What about on site upgrading?

Challenges ahead:Challenges ahead:INMAE in INMAE in CasablancaCasablanca

Needs to expand service to “On site upgrading” :

• Estimated cost : US$ 137m

• Available local financing mechanisms (LYDEC, investment funds, user connection fees, local institutions) : US$ 87m

• Financing gap : US$ 50m

Next steps :

• How to finance pilot project scale up ?

• What role for the World Bank Group ?

Thank youThank you