Translated Document
AFRICAN DEVELOPMENT BANK
MOROCCO
RAILWAY INFRASTRUCTURE REINFORCEMENT PROJECT
APPRAISAL REPORT
OITC DEPARTMENT January 2016
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TABLE OF CONTENTS
I. STRATEGIC GUIDELINES AND RATIONALE OF THE PROJECT ……………………1
1.1. Key Development Constraints ...................................................................................................... 1 1.2. Project Linkage with Country Strategy and Objectives ............................................................... 1 1.3. Rationale for Bank Involvement .................................................................................................. 2 1.4. Coordination of Technical and Financial Partners ....................................................................... 2
II. PROJECT DESCRIPTION ………………………………………………………………3
2.1. Project Objectives and Components ............................................................................................. 3 2.2. Technical Solutions Adopted and Alternative Solutions Considered .......................................... 3 2.3. Type of Project ............................................................................................................................. 4 2.4. Project Cost Estimate and Financing Mechanisms ...................................................................... 4 2.5. Project Area and Beneficiaries ..................................................................................................... 5 2.6. Participatory Approach to Project Identification, Design and Implementation ........................... 6 2.7. Bank Group Experience and Lessons Reflected in 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 11 4.1 Implementation Arrangements ................................................................................................... 11 4.2 Procurement Arrangements ........................................................................................................ 11 4.3 Financial Management and Disbursement Arrangements .......................................................... 12 4.4 Monitoring of Project Activities ................................................................................................. 13 4.5 Governance ................................................................................................................................. 14 4.6 Sustainability .............................................................................................................................. 14 4.7 Risk Management ....................................................................................................................... 15 4.8 Knowledge Development ........................................................................................................... 15
V. LEGAL INSTRUMENT 15 5.1. Legal Instrument ........................................................................................................................ 15 5.2. Conditions Associated with the Bank’s Intervention ................................................................. 15 5.2.1. Conditions Precedent to Loan Effectiveness .............................................................................. 15 5.2.2. Condition Precedent to First Loan Disbursement. ........................................................................ 16 5.2.3. Other Conditions ........................................................................................................................ 16 5.2.4. Commitments ............................................................................................................................. 16
VI. RECOMMENDATION………………………………………………………………………16
Annex I: Comparative Socio-Economic Indicators of Morocco ……………………………I
Annex II: Table of Bank Operations in Morocco as of 14 Sept. 2015……………………...……..II
Annex III: Main related Projects Financed by the Bank and other Development Partners of
Morocco over the last ten years………………………………………………..………..III
Annex IV: Map of the Project Area……………………………………………………………..….IV
LIST OF TABLES AND GRAPHS
Table 2.1: Project Components ................................................................................................... 3
Table 2.2: Alternative Solutions Considered and Reasons for Rejection ................................... 4
Table 2.3: Summary of Estimated Costs per Component for the Whole Project ....................... 4
Table 2.4: Summary of Costs per Expenditure Category for the Whole Project ....................... 4
Table 2.5: Summary of Project Costs by Financing Source ....................................................... 5
Table 2.6: Estimated Project Costs by Component and by Financing Source (in USD million)5
Table 2.7: Expenditure Schedule by Financing
Source…………………………………………………………………………..……5
Table 4.1: Project Monitoring and Supervision ........................................................................ 14
Currency Equivalents
October 2015
UA 1 = 1.404 USD
UA 1 = 13.669 MAD USD 1 = 9.738 MAD
Fiscal Year
1st January – 31st December
Weights and Measures
1 metric ton = 2204 pounds
1 metre (m) = 3.28 feet
1 millimetre (mm) = 0.03937 inch
1 kilometre (km) = 0.62 mile
1 hectare (ha) = 2.471 acres
i
ACRONYMS AND ABBREVIATIONS
ADB African Development Bank
ADS Agency for Social Development
AFD French Development Agency
AFESD Arab Fund for Economic and Social Development
APA Advanced Procurement Action
CE-BSG Centre of Excellence for Gender-Sensitive Budgeting
CGEM General Confederation of Enterprises in Morocco
CSP Country Strategy Paper
CWR Continuous Welded Rail
DEPP Directorate for Public Enterprises and Privatization
DFCG Directorate for Finance and Management Control
DPD Detailed Preliminary Design
EAP Environmental Action Plan
EBRD European Bank for Reconstruction and Development
EIB European Investment Bank
EMS Environmental Management System
ESIA Environmental and Social Impact Assessment
ESMP Environmental and Social Management Plan
EU European Union
GSB Gender-Sensitive Budgeting
GWh Gigawatt/hour
HCP High Commissioner for Planning
HSL High-speed line
IGF General Inspectorate of Finance
INDH National Human Development Initiative
inhab Inhabitants
IRR Internal rate of return
JICA Japanese International Cooperation Agency
KFAED Kuwait Fund for Arab Economic Development
LC Local currency
LTS Long-term strategy (of the Bank)
MAD Moroccan Dirham
MEF Ministry of the Economy and Finance
METL Ministry of Equipment, Transport and Logistics
Mn Million
NGO Non-governmental organization
NPV Net present value
NTCD Net of taxes and customs duties
ONDH Human Development Observatory
PA Project area
PAP Project Affected Persons
PEE Public Establishments and Enterprises
PHSE Hygiene and Health Plan
PIC Infrastructure and Traffic Pole
ii
PROJECT INFORMATION SHEET
PSSE Environmental Surveillance and Monitoring Framework
RP Resettlement plan
SDF Saudi Development Fund
UA Unit of Account
UFA Usable Farm Area
UIC International Union of Railways
USD United States dollar
WB World Bank
Client Information
Borrowers: NATIONAL RAILWAYS AUTHORITY (ONCF)
Project Title: RAILWAY INFRASTRUCTURE REINFORCEMENT PROJECT
Project Area: REGIONS OF CASABLANCA-SETTAT AND MARRAKECH-SAFI
Executing Agencies: NATIONAL RAILWAYS AUTHORITY (ONCF)
1. Financing Plan
Source Amount (MAD
million)
Amount (UA
million)
Amount (USD
million)
Instrument
ONCF 2,831.84 207.17 290.81 Own resources
AfDB 1093.49 80.00 112.30 Project loan
TOTAL 3,925.33 287.17 403.11
2. Key Financial Information of the AfDB
Loan currency Dollar (USD)
Interest Type Floating base rate with a free fixing option
Base rate (floating) 6-month LIBOR
Contractual margin 0.60% (60 basis points (bp))
Funding margin The Bank’s cost of borrowing relative to six-month EURIBOR. This margin
is reviewed every 1st January and 1
st July
Service commission Not applicable
Administrative costs Not applicable
Other Fees None
Tenor 20 years
Grace period 5 years
3. Duration – Main stages (projected)
Activities (Month, Year)
Approval of the concept note 5 September 2015
Project approval 27 January 2016
Date of signature of loan and guarantee agreements 3 April 2016
Effectiveness 25 May 2016
Completion date 31 December 2019
Date of last disbursement on the loan 31 December 2020
Last reimbursement of loan 15 June 2036
iii
EXECUTIVE SUMMARY
General Overview of Project
1. The Tangier-Marrakech railway line covered by this project, comprises the Kenitra-Rabat-
Casablanca and the Casablanca-Settat-Marrakech lines, linking the South to both the North and the East
of the country. Given its strategic position within the national railway network, the Kenitra-Casablanca
line is a vital link between the economic centres of Tangier (North), Oriental and Casablanca (Centre).
Considering that it accounts for almost 50% of freight (excluding phosphate) traffic and 70% of passenger
traffic, this line plays a significant commercial role in the activities of the National Railways Authority
(ONCF). Meanwhile, the Casablanca-Marrakech line links Casablanca, the national economic
megalopolis, to Marrakech, the tourism capital of the Kingdom.
2. Providing this railway line with infrastructure that is tailored to market needs in competitiveness
terms (travel time and quality of service) was planned in several phases. The infrastructure currently
under construction has a physical execution rate of 75%. The project comprises works on: (i) the Kenitra-
Rabat-Casablanca line, comprising the reinforcement of existing tracks, including the construction of a
third 148-km railroad for freight between Zenata and Kenitra; and (ii) the Casablanca-Marrakech line,
which involves the upgrading and partial doubling of 38 km of the track between Settat and Marrakech.
The phase targeted by the project relates to: (i) complete doubling of 141 km of the track between Settat
and Marrakech; and (ii) the construction of 5 (five) modern railway stations between Tangiers and
Casablanca. Its total estimated cost, net of taxes and customs duties, is MAD 3.925 billion or USD 403.11
million. It will be co-financed by ONCF for USD 290.81 million and the Bank for a loan of USD 112.3
million. The relevant activities will be implemented between 2015 and 2020.
3. Apart from the benefits related to increased railway traffic between Casablanca and Marrakech,
the project will generally help to enhance the logistical competitiveness of the national economy. Its
direct beneficiaries are users of railway transport and project area communities. This project is expected
to: (i) ease the traffic between Casablanca and Marrakech; (ii) increase the operational efficiency of the
Casablanca-Marrakech line and expand the accommodation capacity of the Tangiers and Casablanca
railway stations; and (iii) improve the living standards and socioeconomic conditions of project area
communities.
Needs Assessment
4. The Casablanca-Marrakech line has witnessed a sharp increase in transport demand, driven by
the socioeconomic, cultural and tourism potential of both cities and the actions executed by ONCF to
implement the commercial strategy. For instance, passenger traffic has increased by 20% in five years,
rising from 3.82 million in 2010 to 4.6 million in 2014, representing an average yearly increase of 4.75%.
Meanwhile, freight traffic surged from 142,000 tons in 2013 to 207,000 tons in 2014, representing an
increase of approximately 47%. Passenger flows are projected to rise to 4.78 million by end-2015 and
7.41 million by 2020. This growth is expected to continue at an average annual rate of 4% during the next
decade. Goods traffic is expected to rise to 217,000 tons by end-2015 and 504,000 tons by 2020, and then
grow by a steady average annual rate of 5% subsequently.
5. The Settat-Marrakech segment currently has constraining characteristics, in particular a single
141 km track, partially doubled over 38 km with a low curve radius (300 metres) in certain places. If no
action is taken, the outcome would be: (i) saturation of the line with 28 trains per day; (ii) delays and
cumulative delays for passengers; (iii) difficulties in managing time slots reserved for track maintenance;
and (iv) precarious safety along the track. The minimum capacity required to meet the demand for
passenger traffic alone is estimated at 36 trains per day by 2020. Consequently, there is need to
programme the operations to eliminate the constraints along this line in order to cope with the projected
transport demand.
iv
Value-added of the Bank
6. In Morocco, the Bank financed many operations in all sectors, and especially in several transport
sub-sectors. In the railway sub-sector in particular, the Bank financed three projects, namely: the transport
sector rehabilitation project which had a rail component (1993), the railroad rehabilitation project (1998),
and the project to increase the capacity of the Tangier-Marrakech railway line (2010) which is currently
under construction. Execution of the first two projects helped to expand the operational capacity of the
ONCF, thereby improving the quality of services offered and boosting its revenue. With the relevant
gains from these projects and reorganisation of ONCF structures into different business poles, the ONCF
is now equipped to satisfy customer needs. The relevant operational experience and technical expertise in
implementing such projects have been factored into the design of this project and will also be considered
during the implementation phase.
Knowledge Management
7. The main potential lessons from this project will come from the monitoring mechanism that will
be established to document its outcomes and impact. That mechanism will comprise: (i) monitoring of the
various project activities executed by ONCF; (ii) impact assessment at project completion by
beneficiaries, including rail transport users, through periodic opinion polls commissioned by the ONCF;
and (iii) analysis of the level of attainment of targeted development objectives, to be executed by High
Commission for Planning (HCP) and the Human Development Observatory (ONDH). The reports
produced for this purpose should be widely disseminated to various project stakeholders.
v
RESULTS-BASED LOGICAL FRAMEWORK OF THE PROJECT Country and Project Title: Morocco - Railway Infrastructure Reinforcement Project.
Project goal: To enhance the competitiveness of the Casablanca-Marrakech railroad as well as the living conditions of project area communities.
RESULTS CHAIN
PERFORMANCE INDICATORS MEANS OF
VERIFICATION
RISKS/ MITIGATIVE MEASURES Indicators
(including ISCs) Baseline Situation Target
IMP
AC
T Help to increase the volume of
railway transport between
Casablanca and Marrakech
Number of passengers
transported
Tonnage of freight transported
In 2014:
4.6 million passengers
207,000 tons
In 2020:
7.41 million passengers, with
55% being women; 504,000 tons
Sources:
Reports of
MICIEN/METL/HCP/ONDH
Risks
Competition with the pipeline for the transport of phosphate.
Mitigative Measures
The new passenger and freight strategies of the ONCF focus on the
diversification of activities, including freight (oil, cereals, materials,
etc.). Furthermore, all the product types from the OCP cannot be transported by pipeline.
OU
TCO
MES
1. Easing of traffic between
Casablanca and Marrakech;
2. Operational efficiency is
improved on the lines concerned;
3. Living conditions of PA
communities improved;
1.1. Number of passenger trains
1.2. Number of freight trains
2.1. Time gain
3.1. Number of jobs created
during the works
3.2. % of PA women with less
than MAD 1000 per month
In 2015:
1.1. 24 trains/day
1.2. 5 trains/day
2.1. 3h 37 min.
3.1. 0
3.2. 20%
In 2020:
1.1. 36 trains/day
1.2. 12 trains/day
2.1. 2 h 59 mn.
3.1. 75,000 man-days of work (including 22% for
women)
3.2. 15%
Sources:
Reports from ONCF/HCP/ONDH
OU
TPU
TS
1. Construction of rail infrastructure; 1.1 Railroad constructed and
equipped;
1.2 Railway station constructed
and equipped; 1.3 Repair workshop
constructed and equipped;
In 2015:
In 2020:
1.1. 141 km
1.2. 10,000 m2
1.3. 5,000 m2
Sources: Consultancy offices /
ONCF
Risks
(i) Delays in raising counterpart resources;
(ii) Increase in construction costs;
(iii) Procurement bottlenecks/delays that result in late commencement of works;
(iv) Environmental risk.
Mitigative Measures
(i) The ONCF has sufficient self-financing capacity. Furthermore,
the ONCF can also resort to bond issues;
(i) Estimates based on current unit prices on the market, taking into account physical and financial contingencies;
(ii) Sound knowledge of the Bank’s procurement rules and
procedures and recourse to APAs;
(iii) Close monitoring of the implementation of the environmental
and social management plan.
2. Related Works; 2.1. Number of pedestrian
overpasses constructed
2.2. Number of vehicular overpasses constructed
2.3. Number of automatic gates
constructed; 2.4. Protective fencing
constructed 2.5. Number of gender initiatives
implemented.
2.1. 5
2.2. 40
2.3. 3
2.4. 150 km
2.5. 25
3. Project management and
coordination services
3.1. Number of progress
monitoring and outcome
assessment reports 3.2. Number of annual project
account audit reports
3.1. 8
3.2. 3
KEY
AC
TIV
ITIE
S COMPONENTS RESOURCES (IN USD MILLION)
1. Construction of rail infrastructure;
2. Related Works;
3. Project management
4. and coordination services
1. Construction of rail infrastructure; 344.70
2. Related Works: 45.06
3. Procurement of land and vacation of the project right-of-way: 10.27
4. Project management and coordination services: 3.08
TOTAL RESOURCES: 403.11
vi
INDICATIVE PROJECT IMPLEMENTATION SCHEDULE
Jan Feb M ar Apr M ay Jun Jul Aug Sep Oct Nov Dec Jan Feb M ar Apr M ay Jun Jul Aug Sept Oct Nov Dec Jan Feb M ar Apr M ay Jun Jul Aug Sept Oct Nov Dec Jan Feb M ar Apr M ay Jun Jul Aug Sept Oct Nov Dec Jan Feb M ar Apr M ay Jun Jul Aug Sep Oct Nov Dec Jan Feb M ar Apr M ay Jun Jul Aug Sep Oct Nov Dec
1. Project approval and loan effectiveness
1.1. Project approval by the Board of Directors
1.2. Signature of loan and guarantee agreements
1.3. Effectiveness of the loan agreements
2. Construction of rail infrastructure
2.1. Complete doubling of the Settat-Marrakech track
2.1.1. Construction works on infrastructure and bridge structures
between Imfout and Skhours
2.1.2.Rehabilitation works on bridge structures between Casablanca
and Marrakech
2.1.3. Laying of the track between Settat and Marrakech
2.1.4. Laying of the catenary between Settat and Marrakech
2.1.5. Refurbishment of stations between Settat and Marrakech.
2.1.6. Construction and equipment of sub-stations
2.1.7. Supply of railway engines for doubling of the track
2.2. Refurbishment of the railway stations and the Casablanca triangle
2.2.1.Refurbishment of the railway stations and the Casablanca
triangle
2.2.2. Refurbishment of the Casablanca passenger station
2.3. Construction of stations
2.3.1. Construction of the Rabat Agdal station
2.3.2. Construction of the Kénitra station
2.3.3. Construction of the Casablanca passenger station
2.3.4. Construction of the Rabat city station
2.3.5. Construction of the Tangier station
3. Ancillary works
3.1. Safety at track crossings
3.1.1. Construction of engineering structures
3.2. Construction of workshops for roll ing stock
3.2.1.Construction of a workshop for roll ing stock at the Marrakech
station
3.2.2.Construction of a workshop for roll ing stock at the Kénitra
station
3.2.3.Construction of a workshop for roll ing stock at the Casa Voy
station
Activities2018 2019 20202015 2016 2017
1
REPORT AND RECOMMENDATIONS FROM BANK GROUP MANAGEMENT TO THE BOARD OF
DIRECTORS CONCERNING AN ADB LOAN TO THE NATIONAL RAILWAYS AUTHORITY OF
MOROCCO TO FINANCE THE RAIL INFRASTRUCTURE REINFORCEMENT PROJECT
Management submits this report and recommendations on a proposal to award an AfDB loan of USD
112.3 million to the National Railways Authority to finance the railway infrastructure reinforcement
project.
I. STRATEGIC GUIDELINES AND RATIONALE OF THE PROJECT
1.1. Key Development Challenges
1.1.1 Morocco recorded robust economic performance with an expected growth rate of 5% in 2015,
despite a difficult international and regional context. This growth, however, is mainly driven by the
agricultural sector and does not create enough jobs for newcomers into the job market. Consequently,
over the last 10 years, the country has embarked on transforming its economic model through the
Emergence Plan (2006) and the Industrial Strategy (2014). This plan and strategy defined a general
development framework, comprising sectors in which Morocco has a competitive advantage: offshoring,
automobile, aeronautics, electronics, agro-food and textiles-leather. To support the implementation of this
strategy, substantial quantitative and qualitative efforts were made to develop and modernize transport
infrastructure.
1.1.2 However, the growth diagnosis conducted by the Bank in 2014 revealed the need to improve
infrastructure access in rural inaccessible areas. In particular, it revealed that the railway network is
inequitably distributed on the national territory. Furthermore, an effort has to be made to develop
logistical poles that facilitate the higher volume of flows, cut goods transport costs and create
employment within the country. Similarly, the transportation of goods by rail is relatively poorly
diversified due to the lack of logistical connections. It follows therefore that the railway network presents
enormous opportunities for economic and social development. The railway line covered by the current
project links Casablanca to Marrakech, among others. Transport demand has skyrocketed on this line,
driven by the steady socioeconomic, cultural and touristic dynamism of these cities. This trend is also
driven by the actions executed under the trade strategy implemented by the National Railways Authority
(ONCF).
1.1.3 For instance, passenger traffic has increased by 20% in five years, rising from 3.82 million in
2010 to 4.6 million in 2014, or an average yearly increase of 4.75%. Meanwhile, freight traffic surged
from 142,000 in 2013 to 207,000 tons in 2014, representing an increase of approximately 46%. Passenger
flows are projected to rise to 4.78 million by end-2015 and 7.41 million by 2020. This growth should
continue at an average annual rate of 4% in the next decade. Goods traffic should rise to 217,000 tons by
end-2015 and 504,000 tons by 2020, and grow by a steady average annual rate of 5% subsequently. Given
the current situation, especially on the Settat-Marrakech segment which has a single track over 141 km,
that is partially doubled over 38 km with a low curve radius (300 m) in places, the maximum transport
volume along the Casablanca-Marrakech line is only 28 trains/day. The minimum capacity required to
meet the demand for passenger traffic alone is estimated at 36 trains/day by 2020. There is need therefore
to eliminate the constraints along this line in order to cope with the projected transport demand. Besides,
according to (i) various satisfaction surveys commissioned by ONCF and targeting railway transport
users, and (ii) capacity analysis studies, there is an urgent need to improve on the quality of services and
expand the intake capacity of the railway stations currently in operation.
1.2. Project Linkage with Country Strategy and Objectives
This project is consistent with the priorities outlined in Morocco's economic and social development
programme for 2012-2016. It seeks to address the competitiveness challenge and preserve Morocco's
macroeconomic viability with a view to generating sustained and inclusive growth that can sustainably
improve the living conditions of the people.
2
The project is also consistent with the Strategy of the Ministry of Equipment, Transport and Logistics
(METL) for 2012-2016, especially its Pillar I on “Transport Infrastructure Development”. This strategy
seeks to boost the harmonious development of transport infrastructure in accordance with international
standards, in a manner that enhances the Kingdom's connectivity to major international centres that
import and export goods and raw materials and, consequently, the competitiveness of the entire national
territory. This will be done by constructing an efficient, profitable and durable multimodal transport
system that facilitates passenger and goods mobility.
1.3. Rationale for Bank Involvement
The Bank's involvement in this project is justified by its consistency with Pillar II (“Support to green
infrastructure development”) of the AfDB’s 2012-2016 Country Strategy Paper (CSP) for Morocco.
Indeed, it mirrors the Bank's determination to focus its operations, between 2015 and 2016, on aspects
that support Morocco in the effective transformation of its economic model. Such aspects are the
promotion of value chains especially in the export sector, improvement of the business environment,
connection of businesses to markets through export zones, and hinterland development to boost the
competitiveness of the economy and open up access to the various regions. Furthermore, the project is
consistent with the Bank's 2013-2022 Ten-Year Strategy which gives priority to infrastructure and private
sector development. Moreover, this project is fully consistent with the Bank's new guidelines on transport
infrastructure which recommend greater diversification of its portfolio and especially greater involvement
in the railway sub-sector.
1.4. Coordination of Technical and Financial Partners
1.4.1 The Technical and Financial Partners (TFPs) present in Morocco collaborate regularly through
consultations at thematic meetings and sectoral working groups. Regular consultations among TFPs
guarantee the synergy and complementarity of their various operations. Since it was opened in 2006, the
AfDB field office in Morocco has played a key role in consolidating dialogue with the Government and
with other development partners. To enhance the coordination of operations among TFPs, the
Government established the Geographical Information System (GIS) which facilitates real-time
monitoring of various operations by region, sector and invested amount. The GIS is managed by a
steering committee composed of the Ministry of the Economy and Finance (MEF) and focal points of
TFPs. Morocco's five leading TFPs, in addition to the Bank, are France, Spain, World Bank (WB),
European Union (EU) and the European Investment Bank (EIB) with respective commitment levels
ranging from EUR 1.9 to 2.2 billion. Aggregate TFP commitments amount to almost MAD 140 billion, or
over EUR 12 billion.
1.4.2 Several donors operate in Morocco’s transport sector. Apart from the Bank, there are the EIB, the
Islamic Development Bank (IsDB), WB, EBRD, the Arab Fund for Economic and Social Development
(AFESD), the French Development Agency (AFD), the Japanese International Cooperation Agency (JICA), the
Kuwait Fund for Arab Economic Development (KFAED), the Saudi Development Fund (SDF), the Abu Dhabi
Development Fund, Portugal, Italy, Spain and private French banks. Aid coordination is generally the
responsibility of the Ministry of the Economy and Finance (MEF). More specifically, transport sector
coordination is conducted among the main financial partners through a consultative mechanism that includes
periodic meetings between the Bank and development partners represented in the country. Specific meetings
between partners are also organized when necessary and during missions of various partners to share information
on the sector and on the status of various projects and programmes. These meetings provided the Bank with an
opportunity to coordinate and harmonize its sector operations with those of other partners during the preparation
and appraisal missions of this project. Furthermore, since 2013, METL has undertaken to centralize the
coordination of various partner operations within the cooperation unit. The Bank team held consultative
meetings with the main TFPs, including EBRD, AFD and JICA. The working sessions aroused the interest of
these partners in the project.
3
II. PROJECT DESCRIPTION
2.1. Project Objectives and Components
2.1.1 This project is executed as part of the National Transport Sector Development Strategy for 2012-
2016. Specifically, it entails continuing with the upgrade and modernization of infrastructure and services
in order to boost the logistical competitiveness of the national economy by cutting transport costs in
domestic and external trade. The sector objective of the project is to increase the railway transport volume
between Casablanca and Marrakech and enhance the accommodation capacity and quality of service in
the railway stations between Tangiers and Casablanca, so as to address goods and passenger transport
needs by 2020. Specifically, it seeks to: (i) facilitate railway traffic along the Casablanca-Marrakech line;
(ii) enhance the operational efficiency and intake capacity of the railway stations along these segments;
and (iii) improve the living conditions of project area (PA) communities.
2.1.2 The project comprises the following three components: (i) construction of railway infrastructure;
(ii) related infrastructure; and (iii) project management.
Table 2.1 - Project Components
No. Name of Component Cost Detailed Description of Sub-components
A
CONSTRUCTION OF
RAILWAY
INFRASTRUCTURE
USD
344.7
million
A.1. Works: (i) construction of the sub-grade and engineering structures
between Imfout and Skhours (41 km); (ii) laying of the track, catenary,
and sub-station equipment between Settat and Marrakech (141 km); (iii)
refurbishment of the railway stations along the Settat-Skhours and
Benguerir-Sidi Ghanem lines; (iv) construction of railway stations
between Tangiers and Casablanca; and (v) implementation of
environmental protection measures;
A.2. Works Control and Supervision
B RELATED WORKS 45.06
USD
million
B.1. Consolidation of Gender Achievements in the PA : (i) income-
generating activities, multipurpose centres, women's homes (delivery centres for
women), youth support and student residential centres, day-care centres
and preschool infrastructure in poor areas (INDH actions); (ii)
development of local products, individual business platform, capacity-
building through grassroots guidance and the socioeconomic integration
of the youth (ADS actions de l’ADS);
B.2. Safety at Road Crossings: Construction of (i) railroad pedestrian
overpasses; (ii) vehicular overpasses; (iii) protective fencing; (iv)
automatic gates at level crossings; and (v) workshops for rolling stock.
B.3. Works Control and Supervision
C VACATION OF THE
PROJECT RIGHT-OF-
WAY
10.27
USD
million
C.1. Land acquisition;
C.2. Vacation of the project right-of-way
D PROJECT
MANAGEMENT
3.08
USD
million
D.1. Project monitoring and Coordination
D.2. Audit of project accounts
2.2. Technical Solutions Adopted and Alternative Solutions Considered
2.2.1 In 2008, ONCF initiated a study on the capacity of its Tangiers-Casablanca-Settat-Marrakech
railway network, with a view to executing development works on the existing network and addressing
freight and passenger transport concerns in 2015 and 2020. Several scenarios were analysed. Of the three
scenarios (A, B and C) studied, Scenario C, which includes this project, was finally selected for
investment cost optimization reasons relating to rail services and consistent with the strategy adopted by
ONCF to execute its priority development programme under the programme contract (2010-2015).
2.2.2 The alternative chosen for 2020 is the complete doubling of the track between Settat and
Marrakech and a speed increase, which entails making a few rectifications in the curve radius and raising
the superelevations. This involves excavation works to develop a platform over 41 km and a lateral
expansion of close to 4 m on average. Such expansion could go up to 15 m over a continuous segment of
6 km, in the areas where the curve radius has to be rectified. The works will be executed within the
alignment of the current track and will include the extension of hydraulic structures and, in certain places,
4
the expansion of their section. There are also plans to double the bridge structures. Protection of the
earthworks will require anti-contamination geotextiles to prevent the growth of mould and invasive
weeds. The track body will consist of a ballast bed that is 45 cm thick that would ballast the track itself.
The track will consist of a UIC60 continuous welded rail (CWR), supported and stabilized by concrete bi-
block sleepers.
Table 2.2 - Alternative Solutions Considered and Reasons for Rejection
Scenario Brief description
Reason for rejection By 2015 By 2020
Scenario A Settat-Marrakesh
Partial doubling
High-Speed Line (HSL)
between Settat and Marrakech
High cost for the 2015
and 2020 time horizons
Scenario B Settat-Marrakesh
Partial doubling
Speed increase between Casa
and Rabat
Additional speed increase
between Settat and Fès
HSL between Settat and
Marrakesh
High cost for the 2015
and 2020 time horizons
2.3. Type of Project
The project is an investment operation. An AfDB loan is the financing instrument deemed to be the most
adapted to the Bank's involvement in this operation.
2.4. Project Cost Estimate and Financing Mechanisms
2.4.1. The total project cost, net of taxes and customs duties (NTCD), is MAD 3,925.23 billion or USD
403.11 million. The provision for physical contingencies is 7% of the total base cost, while the provision
for price increase is 4% of the total base cost plus physical contingencies. This cost was determined based
on the final draft study (FDS) conducted in September 2014 and recent similar contracts. The summary of
estimated costs by project component is presented in the table below:
Table 2.3: Summary of estimated costs per component for the whole project
COMPONENTS MAD million USD million UA million
F.E. L.C. Total F.E. L.C. Total F.E. L.C. Total
1. Construction of rail
infrastructure
682.88 2,333.08 3,015.96 70.13 239.60 309.72 49.96 170.68 220.64
2. Ancillary works 299.65 94.59 394.25 30.77 9.71 40.49 21.92 6.92 28.84
3. Vacation of the project
right-of-way
- 89.85 89.85 - 9.23 9.23 - 6.57 6.57
4. Project management
and monitoring
- 26.96 26.96 - 2.77 2.77 - 1.97 1.97
Baseline cost 982.54 2,544.39 3,527.02 100.90 261.31 362.21 71.88 186.15 258.03
Physical contingencies 68.78 178.11 246.89 7.06 18.29 25.35 5.03 13.03 18.06
Financial contingencies 42.18 109.24 151.42 4.34 11.22 15.55 3.09 7.99 11.08
Total Cost NTCD 1,093.49 2,831.84 3,925.33 112.30 290.81 403.11 80.00 207.17 287.17
2.4.2. The summary of estimated costs by project category is presented in Table 2.4 below:
Table 2.4: Summary of costs per expenditure category for the whole project
EXPENDITURE CATEGORIES MAD million USD million
F.E. L.C. Total F.E. L.C. Total
1. Works 880.40 2,262.35 3,142.75 90.41 232.33 322.74
2. Goods 89.85 192.29 282.14 9.23 19.75 28.97
3. Services - 89.85 89.85 - 9.23 9.23
4. Miscellaneous 12.28 - 12.28 1 ?26 - 1.26
Baseline cost 982.54 2,544.48 3,527.02 100.90 261.31 362.21
Physical contingencies 68.78 178.11 246.89 7.06 18.29 25.35
Financial contingencies 42.18 109.24 151.42 4.33 11.22 15.55
Total Cost NTCD 1,093.49 2,831.84 3,925.33 112.30 290.81 403.11
5
2.4.3. The project will be financed in parallel and in accordance with the projected schedule below by
the ONCF, using own resources amounting to MAD 2,831,840,000, or 72.14% of the total project cost
NTCD; and by the Bank, through an AfDB window loan of EUR 112.3 million, or 27.86% of the total
project cost. The Bank's contribution will cover approximately 23% of the component on "railway
infrastructure construction" and approximately 76% of the related "related infrastructure” component.
Table 2.5: Summary of project costs by financing source
Financing
Source
MAD million USD million UA million Percentage
F.E. L.C. Total F.E. L.C. Total F.E. L.C. Total
ONCF - 2,831.84 2,831.84 - 290.81 290.81 - 207.17 207.17 72.14%
AfDB 1093.49 - 1093.49 112.30 - 112.30 80.00 - 80.00 27.86%
Total 1,093.49 2,831.84 3,925.33 112.30 290.81 403.11 80.00 207.17 287.17 100.00%
Table 2.6: Estimated project costs by component and by financing source (in USD million)
Components ONCF AfDB TOTAL
1 Construction of rail
infrastructure 239.60 70.13 309.72
2 Ancillary works 9.71 30.77 40.49
3 Vacation of the project right-of-
way 9.23 - 9.23
3 Project management and
monitoring 2.77 - 2.77
Total base costs 261.31 100.90 362.21
Physical contingencies 18.29 7.06 25.35
Financial contingencies 11.22 4.33 15.55
Total Cost NTCD 290.81 112.30 403.11
2.4.4. The expenditure schedule (in EUR million) by financing source is presented in the table below:
Table 2.7: Expenditure schedule by financing source (in USD million)
SOURCE 2015 2016 2017 2018 2019 2020 2021 Total
ONCF 4.98 25.76 60.78 64.07 68.07 40.99 15.89 290.81
AfDB - 37.68 56.18 17.83 0.62 - - 112.30
Total Cost
NTCD 4.98 63.44 116.96 81.90 68.68 40.99 145189 403.11
% of total cost 1.27% 16.15% 29.77% 20.85% 17.48% 10.43% 4.04% 100.00%
2.5. Project Area and Beneficiaries
2.5.1 The direct project area (PA) covers the regions of Casablanca-Settat and Marrakech-Safi, and has
an estimated population of over 8.6 million inhabitants, or over 28% of the national population. It
includes the provinces of Settat, Kelaa des Seraghna and Marrakech. The Settat-Marrakesh railway study
area covers the above territories and their resident population of 1,286,000 inhabitants, or 15% of the
population in the three PA regions.
2.5.2 The economic activity in the Casablanca-Settat region is dominated by the primary sector
(agriculture and stockbreeding) which employs approximately 50% of the labour force. Hence,
agriculture is crucial to the promotion and development of the region's economic activity. Consequently,
considering that it has a usable farm area (UFA) of 60% of the total regional surface area, the region is
essentially geared towards agriculture. It is one of the most fertile regions in the country. With regard to
stockbreeding, the region has approximately 1.9 million sheep, representing 12.3% of the national sheep
population in 2007. It is home to approximately 389 industrial establishments, or 5% of the industrial
units in the country. The industrial sector permanently employs 21,000 persons and accounts for 5.2% of
the national output. In productivity terms, the leading sector is the agro-food industry with an estimated
output of MAD 4 billion.
6
2.5.3 The Marrakech-Safi region is predominantly rural and reliant on agriculture for the development
of its economic fabric. The UFA is 1,554,500 hectares, or 17.3% of the national UFA. The main product
of the region remains cereals with almost 2.2 million quintals. Moreover, the region’s citrus output is
65,300 tons, or 5.1% of the national output. It has close to 475 industrial establishments, or 6.1% of the
industrial units in the country. The industrial sector permanently employs over 18,200 persons and
generates a turnover of MAD 6.5 billion. The agro-food sector generates the highest output with a little
over MAD 3.5 billion, followed by the chemical and para-chemical industry, and the textiles and leather
industry.
2.6. Participatory Approach to Project Identification, Design and Implementation
2.6.1 It should be recalled that this project is part of the ONCF programme contract for 2010-2015, which
itself derives from the government’s railway strategy in particular and the transport sector in general.
Consequently, the project was designed through a broad participatory approach involving elected
representatives, members of associations, the local community and railway users at various levels. After the
adoption of its programme contract, the ONCF organized information seminars on its investment
programme, as well as sensitization programmes targeting the civilian population, local elected
representatives, government officials, the General Confederation of Enterprises in Morocco (CGEM), NGOs
and associations.
2.6.2 The local population was involved in the selection of various railroad alignment options, in order to
reduce expropriations to a minimum and adopt measures and investments that mitigate noise pollution and
accidents. Satisfaction and traffic surveys targeting the current railroad users concerned also contributed to the
sizing and development of optimal options for ensuring the functionality of railway stations and enhancing the
level of service. The participation of various stakeholders to the project will be sought during project
implementation. Support to consolidate gender achievements will be provided through a participatory approach
as in the other projects/actions of the National Human Development Initiative (INDH)/Social Development
Agency (ADS).
2.7. Bank Group Experience and Lessons Reflected in Project Design
2.7.1 The last review of the Bank's portfolio in Morocco conducted in June 2014 revealed satisfactory
performance with a score of 2.56 out of 3. This performance has remained stable since 2012. The
portfolio is new with an average age of 3 years and contains no project at risk. The main constraints noted
in the execution of investment projects in Morocco relate to: (i) protracted procurement delays; (ii) poor
data quality at commencement for certain operations; (iii) occasional late commencement of certain
operations; and (iv) late submission of audit reports.
2.7.2 The Bank finances several similar operations on the continent. More specifically, it has already
supported three projects in Morocco’s railway sub-sector. These are: (i) rehabilitation of the transport
sector which included a railway component (1993); (ii) railway rehabilitation (1998); and (iii) expansion
of the capacity of the Tangier-Marrakesh railway line (2010). Implementation of the first two projects
contributed to developing the operational capacity of the ONCF, with an improvement in service quality
and an increase in revenue. With the relevant gains from these projects and reorganisation of the
structures of the ONCF into different business poles, the ONCF is now equipped to satisfy customer
needs.
2.7.3 Operational experience and technical expertise in implementing such projects were factored into
project design and will also be considered during the implementation phase. Hence, to mitigate the
consequences of long procurement delays, advance procurement actions (APA) were adopted to ensure
the rapid commencement of works upon approval of the project by the Bank. Furthermore, the ONCF has
sought the Bank's agreement to resort to retroactive financing. Similarly, the project appraisal mission
team was informed that a new external audit firm had been recruited by ONCF for 2016-2018, based on
the Bank’s standard terms of reference.
7
2.8. Key Performance Indicators
2.8.1 In accordance with the components and activities envisaged for this project, the main expected
achievements are: (i) 25 actions/initiatives to build on gender achievements; (ii) 141 km of railway
constructed and equipped; (iii) 10,000 m2
of stations constructed and equipped; (iv) 5000 m2 of rolling
stock repair shops constructed; (v) 5 pedestrian overpasses constructed; (vi) 40 vehicular overpasses
constructed; (vii) 3 automatic gates installed; and (viii) 150 km of protective fencing constructed.
2.8.2 To gauge the achievement status of the project’s development targets, the following outcome
indicators will be monitored: (i) volume of passenger traffic generated by gender; (ii) volume of freight
traffic generated; (iii) gains in travel and waiting times; (iv) number of jobs created by gender; (v) volume
of traffic generated per station; (vi) road safety gains; and (vii) user satisfaction rates per gender.
2.8.3 To ensure that these activities are implemented within the prescribed deadlines, performance
indicators, other than results and impact indicators, were set relative to the Bank's institutional
performance indicators. These include: (i) loan effectiveness deadlines; (ii) deadline for fulfilment of
conditions precedent to first disbursement; (iii) procurement deadlines; (iv) average project progress
status indicator (PI); and (v) changes in the disbursement rate in accordance with the expenditure
schedule. These indicators will be monitored during supervision missions and in the daily management of
the project.
III. PROJECT FEASIBILITY
3.1. Economic and Financial Performance
Economic Feasibility
3.1.1 The economic evaluation of the project is based on a cost-benefit differential analysis between
the "no project" and "project" situations. Its economic life span is 60 years for the infrastructure, 30 years
for the railway infrastructure and 50 years for the stations. In keeping with the recommendations of the
High Commission for Planning in Morocco, a discount rate of 5% was adopted for basic infrastructure
with long-term depreciation. In the baseline (i.e. no project) situation, the values considered for
"passenger” traffic are 24 trains per day, for a travel time of 2 h 45 min between Casablanca and
Marrakech. This yields a volume of 3.48 million passengers/year, at an annual growth rate of 4%. With
regard to "goods” traffic, the daily statistics are five trains per day, with a total freight volume of 207,000
tons/year in 2014, at an annual growth rate of 5%.
3.1.2 In the "project" situation, "passenger" traffic will increase to 36 trains per day, for a travel time
of 2 h 37 min and a waiting time reduced by 30 min. This yields total time savings of 38 minutes, in terms
of reduced travel and waiting times. "Passenger" traffic at commissioning will consist of the normal
traffic, traffic generated by the expanded transport capacity and the improved quality of customer services
(stations and trains) and diverted traffic resulting from the modal shift of passengers from road to rail
transport. Overall, it is estimated at 5.31 million passengers/year in 2018. "Passenger" activity will grow
gradually over a period of 4 years, before reaching cruise speed. The annual traffic growth rate will then
be 4%, corresponding to the variations observed over the last few fiscal years. With regard to goods
traffic, the volume that would be generated by the project is evaluated at 99,000 tons/year at
commissioning. It will grow progressively over a period of 4 years, after which it would reach saturation
point. The annual growth rate will then be 5%, in line with previous trends.
3.1.3 The overall economic investment costs factored into the analysis include: (i) direct investment
costs for infrastructure rehabilitation, procurement of railway equipment and the development of railway
stations; and (ii) indirect costs for infrastructure servicing and maintenance, as well as heavy mid-life
refurbishment of infrastructure and equipment. They were calculated based on financial costs, less taxes
and domestic transfers to the economy. The economic benefits expected by the community can be
subdivided into: (i) time gains for travellers; (ii) value-added in terms of direct, indirect and induced jobs
during infrastructure construction and operation; and (iii) externality gains from the modal shift of
8
"passenger" and "goods” traffic from road to rail transport (reduction of road accidents, reduction of air
pollution on the roads and motorways, reduced road maintenance costs, etc.).
3.1.4 The economic benefits of project implementation during the analysis period yield a 13.5%
economic rate of return (ERR) and a net present value (NPV) of MAD 9,397,900,000. A summary of the
economic analysis is provided in the table below. After conducting the sensitivity test (10% increase in
project costs and 10% reduction in benefits), the project´s ERR finally stands at 11.6%. Hence, the project
is economically profitable to the community and the investment is largely justified.
Economic Parameters Analysed Values Obtained
Economic rate of return (ERR) 13.5%
Net present value (NPV) in MAD million 9,397.9
ERR sensitivity test (+10% of costs and - 10% of benefits) 11.6%
Discount rate 5%
Residual value of the investment after 60 years 1,782.24
Financial Feasibility
3.1.5 The financial internal rate of return (FIRR) is the base indicator retained to assess the project’s
financial performance. This rate is determined based on investment costs (net of customs duties and
taxes), operating and maintenance costs and revenue generated by the project (passengers and goods
transport, lease of the commercial facilities in the stations). Assuming that the real discount rate is 8%
(rate based on the weighted average cost of capital as calculated by ONCF), the FIRR for the base case
scenario is 10.6% and the financial net present value (FNPV) is MAD 1,367 million. A sensitivity test
yielded a FIRR of 8.9%. The financial analysis results show that the project is financially justified.
3.1.6 Despite an investment rate that is unprecedented in the history of the ONCF and the resulting
debt level, the financial situation of the ONCF remains solid for the period under consideration. This
situation is characterized by: (i) substantial self-financing capacity; (ii) a working capital fund that
improves from year to year; (iii) an improving cash position despite a rapid disbursement rate driven by
investments and debt servicing; (iv) a comfortable debt ratio; and (v) a good debt service coverage ratio.
3.2. Environmental and Social Impact
Environment
3.2.1 The project was classified under Category I, in accordance with the Bank's Integrated Safeguards
System requirements. The Environmental and Social Impact Assessment (ESIA) and the accompanying
Environmental Surveillance and Monitoring Plan (ESMP), were drafted in March 2013. It was recognized
as environmentally compliant by Morocco’s Department of the Environment in March 2013. The ESMP
was published in January 2015 on the website of the ONCF and Morocco’s Department of the
Environment/Secretariat of State for the Environment and in August 2015 on the Bank’s website. All
works are carried out within the right-of-way of the existing line, which will simply be expanded without
any particular environmental and social consequences. The works phase will generate the following major
negative impacts: (i) prior compensation of 384 projects affected persons (PAPs), including for loss of
agricultural assets; (ii) displacement of various networks, infrastructure and fencing; (iii) disruption of
certain transverse access roads or motorways (level crossings, overpasses), as well as pedestrian paths;
(iv) disruption of rail traffic by works on the track; (v) gas and dust emissions; (vi) risk of accidental spillage
of pollutants; and (vii) risk of accidental discovery of archaeological or cultural vestiges.
3.2.2 In the operational phase, the main negative impacts will be generated by usage of built
infrastructure and installed equipment, especially the increased frequency of trains and higher traffic
speed. These relate to: (i) risk factors and possible accidents for local residents and road users especially
at level crossings; (ii) greater noise pollution in localities situated near the railway line.
9
3.2.3 The main positive impacts of the project are: (i) greater mobility of passengers between the
Grand Casablanca region and the tourist metropolis of Marrakech; (ii) improved services in the stations;
(iii) job creation; and (iv) facilitation of access to the socioeconomic centres between Grand Casablanca,
Ben Guerrir and Marrakech.
3.2.4 The main mitigative measures scheduled are: (i) the commitment of businesses to comply with
the ONCF Environmental Management System (EMS) certified as ISO 14004; (ii) provisions governing
work organization and environmental best practices, whose terms of reference and ESMP require the
development of Environmental Action Plans (EAPs) and Hygiene and Health Plans (HHPs). Each of them
will be supplemented by emergency intervention procedures. The mitigating measures for the works
phase, specified in the ESMP, will be included in the terms of reference for contractors and control
missions for implementation. The following technical measures were also factored into project design:
(iii) 33,000 m3 of ballast will be recovered and reutilized; (iv) 3,600 rails of 18 ml will be recovered and
reused for secondary lines and stations; (v) 150,000 m3 of excavated material will be reused for
backfilling. Details on measures taken during the construction and operational phases are provided in the
annexes presenting the ESMP.
3.2.5 The cost of the environmental and social measures outlined in the ESMP shall be included in the
total cost of works. It amounts to MAD 31.52 million, or 1.6% of the net project cost (excluding chance
factors and physical contingencies). Costs relating to surveillance and environmental monitoring activities
shall be borne by the monitoring unit (MU) attached to the ONCF project supervision structure. They
represent a net amount of MAD 0.7 million. Monitoring of the execution of project components and
implementation of the ESMP shall be ensured by the ONCF through its project supervision department.
That department comprises a project impact surveillance and monitoring unit (MU).
Climate Change
3.2.6 Despite the average sensitivity of the region traversed by the railway (heavier rainfall, longer
droughts and higher temperatures), the nature of the railway infrastructure and the specific geometry of
the railway alignment makes it possible to avoid the effects of these changes. The raised railroad bed is
adequately drained. Hence, the continuous welded rail (CWR) makes it possible to safely resist
temperatures of almost 85°C and the new suspended catenary absorbs both winds and dilations caused by
high temperatures. Curve rectification zones will have their embankments stabilized over a stretch of 70
metres. Moreover, the envisaged infrastructure will result in a modal shift from road to railway transport
for a significant share of current and future transport demand between Grand Casablanca and Marrakech.
Hence, the project will contribute to the reduction of emissions, with 6.5 million tons of carbon dioxide
equivalents of greenhouse gases (GHGs) avoided per year. This result should be considered for the entire
life of the infrastructure and compared to the "no project" situation which entails continuing to use the
road network to transport goods and passengers. This reduction of emissions is made possible by the
annual generation of almost 240 GWh of energy by two wind farms (emission-free renewable energy), for
the operation of the ONCF electrical traction network.
Gender and Vulnerable Persons
3.2.7 At the end of 2012, Morocco had 2.74 million employed women (1.03 million in urban areas and
1.71 in rural areas). The female employment rate in 2013 was 22.7% (compared to 66.4% for men).
Within the public service, women accounted for 38.6% of the 860,000 civil servants in 2012 (4.6% higher
than in 2002). They are heavily present in the health (56.61% of the workforce) and justice (48.56%)
departments. Almost seven female civil servants out of ten (67.65%) are managers and two out of 10
(20.88%) are supervisors. The proportion of women executives is higher in regional services (68.81%)
than in the central services (53.41%). It should be noted that the employment rate for women is
characterized by wide regional disparities. It exceeds or is close to 30% in predominantly agricultural
areas: Doukkala - Abda (34.4%); Chaouia-Ouardigha (32.4%); Souss-Massa - Drâa (31.1%), El Gharb
(30.8%) and Marrakech - Tensif-El Haouz (29.3%).
10
3.2.8 Despite persistent inequalities between men and women, it is clear that Morocco has made
significant efforts in gender promotion. Indeed, over the last two decades, constitutional and statutory
reforms have facilitated and driven the participation of Moroccan women in development. Examples
include: (i) implementation by the Government of Morocco, since 2006, of a national strategy for
mainstreaming gender into all public and sectoral policies, as well as a "national strategy to combat
violence against women"; (ii) a State budget "genderization" process launched by MEF as part of public
expenditure reform; and (iii) gender-sensitive budgeting (GSB), introduced since 2005, which has made it
possible to generate knowledge and tools for evaluating public policies from the gender standpoint. When
GSB was launched, it covered four ministries. In 2013, it was extended to over 27 ministries. In June
2013, MEF and UN-Women signed an agreement for 2013-2016 on the establishment and development
of a centre of excellence for gender-sensitive budgeting (CE - GSB) based on capitalization, innovation,
learning and sharing.
3.2.9 As regards combating poverty and social exclusion, Morocco has implemented major structuring
programmes that have had a significant impact on the socioeconomic situation of the poor. Examples
include the actions carried out by the "Pole genre" of ADS and implemented in tandem with INDH
operations. The INDH is currently on its second programme (2005-2010 and 2011-2015). These actions
made it possible to identify: (i) 403 rural councils deemed eligible on the basis of their poverty rate which
is close to or exceeds 30% (from the poverty mapping prepared in 2004); and (ii) 264 urban
neighbourhoods in cities and towns with a population exceeding 100,000 inhabitants.
3.2.10 Within the immediate PA, INDH has, over the past 10 years, funded 2276 projects and 597 actions
for the benefit of 367,349 associations, of which 178,781, or 48.7%, are women's associations. To support
efforts aimed at improving the socioeconomic conditions of women and enhancing their economic
empowerment, the project will help to consolidate INDH actions in the PA. To that end, provision is
made for financing projects and actions that have a significant impact on women. These include: (i)
income-generating activities; (ii) women's homes (delivery centres for women); (iii) support to the youth
and student residential centres; and (iv) day-care centres and preschool infrastructures in poor
neighbourhoods. In this regard, a collaboration agreement will be signed between ONCF and INDH for
the execution of its activities using governance and implementation techniques that have proven their
worth since the launch of INDH activities in 2005. The ADS also has four socioeconomic development
support programmes in the PA as follows: (i) development of local products; (ii) individual
entrepreneurship platforms; (iii) capacity-building through grassroots guidance; and (iv) socioeconomic
integration of the youth. It solicited support for the consolidation of the gender dimension in these
programmes. An agreement will eventually be signed between ONCF and ADS to establish this gender
support in the PA.
Social
3.2.11 According to the results of the 2014 general population and housing census, the legal population
of Morocco, as of 1 September 2014, was 33,848,242, composed of 33,762,036 Moroccans and 86,206
foreigners. The number of households is 7,313,806. Relative to the 2004 census, Morocco’s population
has increased in absolute terms by 3,956,534 inhabitants, representing a general growth rate of 13.2% and
an average annual growth rate of 1.25% from 2004 to 2014, compared to 1.38% for the intercensal period
(1994-2004).
3.2.12 As regards poverty, the various programmes implemented to improve the living conditions of the
people, have had notable effects in this area. Indeed, between 2004 and 2007, the poverty rate was
reduced in all regions of Morocco. Over this period, there was a significant decline in poverty levels. In
absolute terms, this decrease is most notable in the poorest regions according to the 2004 poverty survey.
It is -43.6% in the region of Chaouia-Ouardigha and-41.8% in Marrakech-Tensift-Al Haouz, two areas
which fall within the PA of this project. For their part, almost all the provinces recorded a decline in
poverty (93.5%) between 2004 and 2007.
11
3.2.13 Implementation of this project will further improve the living conditions for the affected
communities and major users of this railway line. Indeed, as already indicated in the section on
environmental impact, this project will (i) create 269,000 man/months of work during the construction
phase (including 22% for women) and 50 permanent jobs during the operational phase; (ii) yield global
time gains (travel and waiting periods) of 38 minutes; and (iii) further increase access to basic
socioeconomic services (administration, health centres, schools), and the main tourist centre of
Marrakech. The construction of these planned facilities (overpasses, footbridges, automatic gates and
protective fencing) will enhance security and safety for passengers and the local population. Actions to
consolidate gender achievements will contribute to improving the socioeconomic conditions of women
and other vulnerable groups.
Involuntary Resettlement
3.2.14 A Comprehensive Resettlement Plan (CRP) was designed in July 2015 and published on the
ONCF website, and its summary was published on the Bank's website in August 2015. The census
conducted by ONCF did not identify any need for population resettlement or displacement of homes. It
solely and exclusively identified the expropriation of strips of land along the existing railroad right-of-
way. The CRP identified 384 landowners who will be affected by the project, for a total land surface area
of almost 35.64 ha. All decrees of expropriation in the public interest, together with the list and status of
the plots concerned, are published in the Official Gazette. They can also be consulted at the ONCF. The
cost of land procurement and vacation of the right-of-way was estimated at MAD 100 million.
IV. IMPLEMENTATION
4.1 Implementation Arrangements
Project implementation will be steered by the Infrastructure and Traffic Pole (PIC) of ONCF which shall
also ensure project management and supervision. This Pole is appropriately organized and has qualified
and experienced staff to carry out this duty through its various services. In this regard, it will rely, inter
alia, on the Projects Department, the Directorate for Project Supervision and the Directorate for
Engineering. Field supervision of the project will be carried out by the Directorate for Project Supervision
which has the competent services and has the necessary means to perform its duties. These teams will
also receive technical assistance from external consulting firms. The measures adopted have proven their
worth in recently completed and ongoing projects, including the construction of Tangier Med and
Taourirt Nador lines, as well as the ongoing project to expand the capacity of the Tangier-Marrakech
railway line.
4.2 Procurement Arrangements
4.2.1. All international competitive bidding (ICB) for works and goods procurements, fully or partially
financed with AfDB loan resources, shall be conducted in accordance with Bank rules and procedures
using its appropriate standard bidding documents. Meanwhile, pursuant to the provisions of the letter of
agreement signed on 31 May 2013 between the Kingdom of Morocco and the Bank on the use of national
procedures for national competitive bidding (NCB) in projects financed by the Bank, all NCBs may be
executed in accordance with Moroccan procurement procedures, using standard BDs jointly prepared to
that end by the Bank and the Kingdom.
4.2.2. The ONCF, through the Directorate for Procurements, will be responsible for the procurement of
goods and works scheduled under this project as detailed in Annex B5. The procurement capacity of the
ONCF was evaluated during project preparation. The evaluation revealed that ONCF has the requisite
resources and experience, meaning that the risk is low. The resources, capacities, expertise and
experience of the ONCF are detailed in Annex B5.
12
4.2.3. The ONCF has made a commitment to the authorities to ensure that the second track between
Settat and Marrakech is fully operational by early 2018, at the latest. To that end, and in accordance with
the provisions of Article 1.9 and Annexes 4 and 5 of the Bank’s Rules and Procedures on the Procurement
of Goods and Works, the ONCF sought and received from the AfDB, an agreement in principle to resort
to advance procurement actions in the procurement of works and goods for the construction of this track.
Similarly, an indicative procurement plan, covering the first 18 months of project implementation, was
also submitted to the Bank which approved it.
4.2.4. For the execution of sub-component B.1 (Consolidation of gender achievements in the PA),
provision is made for the signing of project supervision delegation agreements between the ONCF and
specialized human development agencies in Morocco, such as the INDH and ADS which have wide
experience in this domain. This measure is expected to lead to the appropriate formulation and
harmonious implementation of specific activities in support of women (women’s homes, students’
residential centres, day-care centres, etc.) identified under this project. To that end and given the nature of
such activities, the relevant procurements will be executed through national procedures, in accordance
with the letter of agreement of 31 May 2013 and subjected to an ex poste review by the Bank. Besides,
each project supervision delegation agreement will be accompanied by an appropriate procurement plan.
4.3 Financial Management and Disbursement Arrangements
Financial Management
4.3.1. ONCF will be accountable to the Bank for the implementation and financial management of the
project. Financial management was evaluated in accordance with the Bank’s new guidelines and took into
account the current management system as well as the experience acquired by the Directorate for Finance
and Management Control (DFCG) in the management of similar ongoing projects, including the project to
expand the capacity of the Tangiers-Marrakech line. This approach points to the conclusion that the initial
global financial management risk is deemed to be low by the Bank. Nevertheless, the ONCF should
continue with the permanent and efficient use of the existing financial management mechanisms
highlighted in the action plan presented in the annex.
4.3.2. Financial management arrangements: The project will be financially managed by the ONCF,
through DFCG which currently has a staff strength of 72 persons serving in four departments (payment
orders, financial management, accounting and management control). It follows therefore that its financial
management will be fully integrated into that of the ONCF which operates through the following
mechanisms:
i. budget planning by the projects department of the Infrastructure and Traffic Pole (PIC);
ii. monitoring of investment budget execution by the management control departments of
DFCG and PIC;
iii. an internal audit process that is fully integrated into the expenditure approval and control
circuits of the ONCF;
iv. progress reports, including detailed statements on the monitoring of project status (by
component, by contract and by category);
v. management of disbursements denominated in local currency or in foreign exchange;
vi. an information system composed of several integrated applications capable of generating,
inter alia, interim and annual project financial statements based on accounting entries of
commitments and payments in accordance with the accounting system in force; and
vii. an external audit of ONCF and project accounts by an independent audit firm.
4.3.3. These mechanisms utilized and formalized in the ONCF organization manual guarantee
transparency, traceability, asset protection and reliable financial information on funds invested to execute
the project. Nevertheless, sometimes there are delays in the submission of project audit reports to the
Bank. Furthermore, the surveillance of budgetary risk, which is deemed to be low, is ensured by MEF, the
13
Audit Office, the ONCF Board and its various committees (audit and governance committee, investments
committee). The Board is composed of representatives of various ministries, including the Directorate for
Public Corporations and Privatization in MEF (DEPP) whose main mission is to enhance the governance
and efficiency of public corporations. The financial sustainability of the ONCF is ensured through annual
cash-flows and fund-raising on the local bond market. Hence, following this appraisal mission, the overall
project management risk is deemed to be low by the Bank. Given the level of fiduciary risk, the project
will receive only one annual financial management supervision mission.
4.3.4. External audit: The financial statements of the project, prepared by DFCG, will be audited
annually by an external and independent audit firm that will be recruited for the 2016-2018 period. The
audits shall be conducted in accordance with the international audit norms of IFAC and the Bank's terms
of reference (TORs), a copy of which was sent to the ONCF and to the auditor. The audit report,
accompanied by the letter to management on the internal audit of the project, must be transmitted to the
Bank no later than 6 (six) months after closure of the fiscal year concerned. Furthermore, the ONCF, by
virtue of its 100% public shareholding is subject to several financial audits by the State (State auditor
from DEPP) with the possibility of an audit by the Inspectorate General of Finance (IGF) and the Audit
Office (audit operation underway).
4.3.5. Harmonization: The project is financed with Bank loans and self-financing from the ONCF.
Disbursements
4.3.6. Disbursement requests for Bank loan resources shall be presented in accordance with the
provisions of the ADB’s disbursement handbook. In view of the planned activities and procurements,
disbursements will be made through the special account method, the reimbursement method and the direct
payment method. The ONCF has requested and obtained the Bank's permission to resort to advance
procurement actions under the project and sought the Bank's agreement to retroactive financing of up to
EUR 14 million for the procurement of works:
construction of infrastructure and of small and medium-sized engineering structures for
doubling of the track between Imfout and Skhours;
laying of the track between Settat and Marrakech;
laying of the catenary between Settat and Marrakech;
construction and equipment of sub-stations between Settat and Marrakech; and
refurbishment of stations between Settat and Marrakech.
4.3.7. The Bank’s authorization for retroactive financing will ensure the financing of expenditures
made after the date of project approval by the Board of Directors and prior to the date of signature of the
funding agreement, within the limits of the ceiling indicated above.
4.4 Monitoring of Project Activities
4.4.1. The (physical and financial) implementation of the project will be monitored by ONCF and the
service providers that will be selected to execute various project activities. The information collected will
be used to produce periodic project status reports. The project implementation schedule is presented on
Page vii of this report. It especially takes into account the relevant experience of the executing organ in
managing works execution and procurement deadlines and the Bank’s experience in processing files from
similar previous projects. Project activities started after the Bank approved recourse to the APA procedure
(07/10/2015) and are scheduled to end in late 2020. At the Bank, the activities scheduled before and after
loan approval will be monitored according to the indicative schedule below.
4.4.2. As regards assessment of the socioeconomic effects of the project, ONCF could benefit from
studies conducted by several institutions in this domain. These include the High Commission for Planning
(HCP) and the National Human Development Observatory (ONDH). Indeed, the HCP has a mandate to
14
conduct national studies on various aspects of socioeconomic life in Morocco. In 2012, the ONDH
evaluated the impact of INDH actions for 2005-2010. Finally, it should be noted that the ONCF regularly
conducts opinion surveys on customer satisfaction levels. These surveys provide a permanent beneficiary
assessment of the effects of its projects. The studies conducted by these various institutions provide the
necessary information on the socioeconomic impact of this project.
Table 4.1: Project Monitoring and Supervision
Timeframe Stage Process Feedback
Q3 to Q4 -2015 & 2016 & to
Q1-2017
Procurement Approval of BD by the Bank;
launching of competitive bidding by ONCF and bid assessment and award
of contracts
Q1 -2016 Launching of project Field mission Status reports/ Aide mémoire
2016 to 2019 Construction works Field mission/ Supervision Status reports/ Aide mémoire
Q1 -2019
Q1 -2020
Guarantee Term
Field mission Status reports/ Aide mémoire
Project completion report
4.5 Governance
The level of Morocco's fiduciary country risk is moderate, generally due to its satisfactory public finance
management processes (budget planning and budgeting, budget implementation control, management
accounting and preparation of reports, external review and audit). The same applies to budget risk
surveillance (State budget) conducted by DEPP whose main mission is to improve the governance and
efficiency of public establishments and enterprises (PEEs). The governance pattern of DEPP is based on
the following three pillars: (i) professionalization of the PEE Board; (ii) quality of the PEE; and (iii)
utility of State control for the State and for the PEE (modulated control based on the risk level of the
PEE). It follows that DEPP continues to promote the widespread use of internal audit within the PEEs and
certification of their annual accounts by auditors. Furthermore, DEPP has established multi-year
programme contracts aimed at restructuring or developing PEEs, where necessary. It is within such a
governance environment that ONCF operates as one of the public establishments, executing the missions
of public authority delegated to it by the State. With regard to the ONCF in particular, it should be noted
that no complaints have been lodged so far by the bidders after the procurement of works and goods
under the project to increase the capacity of the Tangiers-Marrakech railway line funded by the Bank and
currently underway. The supervision and audit reports have not revealed any particular irregularities.
4.6 Sustainability
4.6.1. Project sustainability depends, to a large extent, on: (i) the technical and financial capacity of the
infrastructure management services to engage in regular and timely routine and periodic maintenance; (ii)
operating conditions; and (iii) the quality of its technical design and works execution. Following a reform
process to streamline its structures, repair and maintenance operations on the infrastructure and facilities
have been outsourced. The hierarchy of operations distinguishes three levels: Level 1 (servicing); Level 2
- light refurbishment (rehabilitation, partial replacement/major operation); and Level 3 - light/heavy
refurbishment (complete replacement, renewal and major operations). The programme is established in
advance and its financing is included in the annual operating budget for routine maintenance, in the
investment budget for rehabilitation of facilities (level 2) and in the five-year budget for complete
renewal.
4.6.2. Depending on the level of complexity, operations management and monitoring services are
provided using internal resources at the regional and central levels. Based on the maintenance
programmes carried out by the ONCF, the maintenance costs for the track and catenary are MAD
50,000/km for the continuous welded rail (CWR) of Settat-Marrakech and MAD 20,000/km for
catenaries. This decline stems from savings in the annual operating budget of the ONCF. Furthermore,
analysis of the project's financial performance shows that the ONCF has sufficient equity to finance
additional maintenance needs generated by the project. Moreover, the technical solutions adopted during
project design comply with the required standards, thus ensuring the sound performance of the facilities,
given their operating costs and the effects of their environment. Furthermore, the steps taken to ensure
15
works control, surveillance and monitoring guarantee their good quality. All these arrangements augur
well for the sustainability of the investments to be made.
4.7 Risk Management
4.7.1. The main risks likely to jeopardize the expected project outcomes and its smooth performance
are: (i) delays in the provision of counterpart resources; and (ii) a decline in phosphate traffic. Indeed,
ONCF generates nearly 50% of its revenue from its commercial contract with OCP to transport
phosphates; (iii) the increase in the cost of works relative to the estimated budget; and (iv) long lead times
and significant delays in the execution of procurements for ongoing projects.
4.7.2. The mitigative measures are as follows: (i) as concerns counterpart funds, the ONCF has sufficient
self-financing capacity estimated at an average of EUR 90 million per year during the project execution
period. Furthermore, the ONCF can also resort to bond issues. The last two operations (October 2011 and
July 2015), for a total amount of MAD 1.5 billion each, were successful. (ii) New passenger and freight
strategies of the ONCF focus on the diversification of activities. On this last point, the Board adopted
measures aimed at intervening in the national logistics development strategy in sectors such as cereals and oil
products, and specifically: (a) the development of cereal silos in the railway stations; (b) the development of
platforms for the installation of hydrocarbons storage facilities; (c) the development of dry ports connected to
the main consumption centres (the MITA logistical area in Casablanca currently operational); and (d)
development of the logistical integrative role for freight in Morocco. Furthermore, all OCP product types
cannot be transported by pipeline, hence the need to resort to the railway. (iii) There are detailed design
studies, a realistic cost estimate, an adequate provision for price contingencies, measures taken to ensure
wide competition during the bidding process. (iv) Lastly, there is perfect understanding by the project
management team, of the Bank's procurement rules and procedures and recourse to advance procurement
actions.
4.8 Knowledge Development
The main potential lessons from this project will come from the monitoring mechanism that will be
established to document its outcomes and its impact. That mechanism will comprise: (i) monitoring of the
various project activities executed by ONCF; (ii) impact evaluation at project completion by
beneficiaries, including rail transport users, through periodic opinion polls commissioned by the ONCF;
and (iii) analysis of the level of attainment of targeted development objectives, to be carried out by the
High Commission for Planning and the Human Development Observatory. The reports produced for this
purpose should be widely disseminated to various stakeholders in this project.
V. LEGAL INSTRUMENT
5.1. Legal Instrument
To finance the project, the Bank will use an AfDB loan of USD 112.3 million granted to ONCF with a
guarantee from the Kingdom of Morocco.
5.2. Conditions Associated with the Bank’s Intervention
5.2.1. Conditions Precedent to Loan Effectiveness
The AfDB loan agreement shall become effective on its date of signature. The AfDB loan guarantee
agreement shall become effective on the date of fulfilment by the Guarantor, to the Bank’s satisfaction, of
the conditions provided for in Section 5.01 of the General Conditions for Loan Agreements and
Guarantee Agreements (sovereign entities).
16
5.2.2. Condition Precedent to First Loan Disbursement.
Apart from the effectiveness of the Loan Agreement and the loan guarantee agreement, the first
disbursement of loan resources shall be subject to fulfilment by the Borrower, to the Bank’s satisfaction,
of the conditions provided for in Section 12.02(a)(i) and (ii) of the General Conditions.
5.2.3. Other Conditions
Furthermore, the Borrower must provide, to the satisfaction of the Bank, as the works progress and
before any commencement of works in a given area, proof of compensation of persons affected by the
project in the area, in accordance with the Bank's applicable rules and procedures, the environmental and
social management plan (ESMP) and the Comprehensive Resettlement Plan.
5.2.4. Commitments
The Borrower undertakes, to the satisfaction of the Bank, to:
(i) cover the financing gap if the contract amount exceeds the amount of financing raised;
(ii) execute and ensure execution of the project, ESMP and CRP by its contractors, in
accordance with: (a) the Bank's rules and procedures; (b) national laws; and (c)
recommendations, prescriptions and procedures contained in the ESMP and CRP;
(iii) refrain from commencing works on a given area until the affected persons in that area have
been fully compensated;
(iv) provide the Bank with half-yearly reports on ESMP and CRP implementation, including,
where applicable, any shortcomings and corrective actions initiated or to be initiated; and
(v) provide the Bank with any document that is reasonably necessary for monitoring project
implementation.
VI. RECOMMENDATION
Management recommends that the Board of Directors should approve the AfDB loan of USD 112.3
million to the National Railways Authority, with a guarantee from the Kingdom of Morocco, to finance
the rail infrastructure reinforcement project, in accordance with the terms and conditions set forth in this
report.
I
ANNEX I: COMPARATIVE SOCIOECONOMIC INDICATORS OF MOROCCO
Year Morocco Africa
Develo-
ping
Countries
Develo-
ped
Countries
Basic Indicators
Area ( '000 Km²) 2014 447 30 067 80 386 53 939Total Population (millions) 2014 33,5 1 136,9 6,0 1,3Urban Population (% of Total) 2014 58,1 39,9 47,6 78,7Population Density (per Km²) 2014 75,0 37,8 73,3 24,3GNI per Capita (US $) 2013 3 020 2 310 4 168 39 812Labor Force Participation - Total (%) 2014 50,7 66,1 67,7 72,3Labor Force Participation - Female (%) 2014 27,0 42,8 52,9 65,1Gender -Related Dev elopment Index Value 2007-2013 0,828 0,801 0,506 0,792Human Dev elop. Index (Rank among 187 countries) 2013 129 ... ... ...Popul. Liv ing Below $ 1.25 a Day (% of Population)2008-2013 2,6 39,6 17,0 ...
Demographic Indicators
Population Grow th Rate - Total (%) 2014 1,5 2,5 1,3 0,4Population Grow th Rate - Urban (%) 2014 2,1 3,4 2,5 0,7Population < 15 y ears (%) 2014 27,9 40,8 28,2 17,0Population >= 65 y ears (%) 2014 5,0 3,5 6,3 16,3Dependency Ratio (%) 2014 48,3 62,4 54,3 50,4Sex Ratio (per 100 female) 2014 97,8 100,4 107,7 105,4Female Population 15-49 y ears (% of total population) 2014 27,6 24,0 26,0 23,0Life Ex pectancy at Birth - Total (y ears) 2014 71,2 59,6 69,2 79,3Life Ex pectancy at Birth - Female (y ears) 2014 73,0 60,7 71,2 82,3Crude Birth Rate (per 1,000) 2014 22,5 34,4 20,9 11,4Crude Death Rate (per 1,000) 2014 6,3 10,2 7,7 9,2Infant Mortality Rate (per 1,000) 2013 26,1 56,7 36,8 5,1Child Mortality Rate (per 1,000) 2013 30,4 84,0 50,2 6,1Total Fertility Rate (per w oman) 2014 2,7 4,6 2,6 1,7Maternal Mortality Rate (per 100,000) 2013 120,0 411,5 230,0 17,0Women Using Contraception (%) 2014 68,1 34,9 62,0 ...
Health & Nutrition Indicators
Phy sicians (per 100,000 people) 2004-2012 62,0 46,9 118,1 308,0Nurses (per 100,000 people)* 2004-2012 89,0 133,4 202,9 857,4Births attended by Trained Health Personnel (%) 2009-2012 73,6 50,6 67,7 ...Access to Safe Water (% of Population) 2012 83,6 67,2 87,2 99,2Healthy life ex pectancy at birth (y ears) 2012 61,0 51,3 57 69Access to Sanitation (% of Population) 2012 75,4 38,8 56,9 96,2Percent. of Adults (aged 15-49) Liv ing w ith HIV/AIDS 2013 0,2 3,7 1,2 ...Incidence of Tuberculosis (per 100,000) 2013 104,0 246,0 149,0 22,0Child Immunization Against Tuberculosis (%) 2013 99,0 84,3 90,0 ...Child Immunization Against Measles (%) 2013 99,0 76,0 82,7 93,9Underw eight Children (% of children under 5 y ears) 2005-2013 3,1 20,9 17,0 0,9Daily Calorie Supply per Capita 2011 3 334 2 618 2 335 3 503Public Ex penditure on Health (as % of GDP) 2013 2,0 2,7 3,1 7,3
Education Indicators
Gross Enrolment Ratio (%)
Primary School - Total 2011-2014 117,5 106,3 109,4 101,3 Primary School - Female 2011-2014 114,5 102,6 107,6 101,1 Secondary School - Total 2011-2014 68,9 54,3 69,0 100,2 Secondary School - Female 2011-2014 63,4 51,4 67,7 99,9Primary School Female Teaching Staff (% of Total) 2012-2014 55,1 45,1 58,1 81,6Adult literacy Rate - Total (%) 2006-2012 67,1 61,9 80,4 99,2Adult literacy Rate - Male (%) 2006-2012 76,1 70,2 85,9 99,3Adult literacy Rate - Female (%) 2006-2012 57,6 53,5 75,2 99,0Percentage of GDP Spent on Education 2009-2012 6,2 5,3 4,3 5,5
Environmental Indicators
Land Use (Arable Land as % of Total Land Area) 2012 18,0 8,8 11,8 9,2Agricultural Land (as % of land area) 2012 0,7 43,4 43,4 28,9Forest (As % of Land Area) 2012 11,5 22,1 28,3 34,9Per Capita CO2 Emissions (metric tons) 2012 1,2 1,1 3,0 11,6
Sources : AfDB Statistics Department Databases; World Bank: World Development Indicators; last update :
UNAIDS; UNSD; WHO, UNICEF, UNDP; Country Reports.
Note : n.a. : Not Applicable ; … : Data Not Available.
MoroccoCOMPARATIVE SOCIO-ECONOMIC INDICATORS
janvier 2016
0
10
20
30
40
50
60
70
80
90
100
20
00
20
05
20
08
20
09
20
10
20
11
20
12
20
13
Infant Mortality Rate( Per 1000 )
Morocco Africa
0
500
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1500
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2500
3000
3500
20
00
20
05
20
07
20
08
20
09
20
10
20
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20
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13
GNI Per Capita US $
Morocco Africa
0,0
0,5
1,0
1,5
2,0
2,5
3,0
20
00
20
05
20
08
20
09
20
10
20
11
20
12
20
13
20
14
Population Growth Rate (%)
Morocco Africa
01020304050607080
20
00
20
05
20
08
20
09
20
10
20
11
20
12
20
13
20
14
Life Expectancy at Birth (years)
Morocco Africa
II
ANNEX II: TABLE OF BANK OPERATIONS IN MOROCCO AS OF 14 SEPTEMBER 2015
SECTEUR AGRICOLE 4,7 0,9 3,7 45 670 584 54 710 282 26 654 096 266 28 056 186 48,7% 70,6% 2,4%
1Projet d'ap. tech. prom. jeunes entrepreneurs -
DON PRI 12-janv.-12 4-May-12 4-May-12 31-déc.-15 3,7 0,9 3,8 UC 497 200 497 200 496 965 235 235 100,0% 100,0%
2Projet d'ap. au Prog. nat. d' eco. d'eau d'Irrig.
(PAPNEI)14-déc.-09 01-mai-14 2-Jul-10 31-Dec-16 5,8 0,8 6,7 EUR 44 679 184 53 590 000 25 534 080 28 055 920 47,6% 70,0%
3 Appui tech. dév. Infrastr. d’irrigation - DON PRI 21-févr.-11 17-mars-11 17-mars-11 30-juin-15 4,6 1,0 0,8 UC 494 200 494 200 494 200 0 100,0% 100,0%
SECTEUR TRANSPORTS 5,6 0,9 6,4 450 210 098 540 000 000 121 161 348 112 436 639 306 402 011 28,3% 50,2% 23,7%
4 3ème Projet aéroportuaire 16-avr.-09 8-mai-09 22-oct.-09 31-déc.-15 6,4 1,0 6,3 EUR 200 093 377 240 000 000 44 612 563 112 436 639 82 950 796 35,0% 63,0%
5 Projet d'augm. de capa. Ferrov. Tanger-Marrakech 17-déc.-10 17-mars-11 30-Jun-11 31-déc.-16 4,7 0,8 6,5 EUR 250 116 721 300 000 000 76 548 785 223 451 215 25,5% 40,0%
SECTEUR ENERGIE 2,7 0,4 3,1 844 829 014 1 049 860 000 416 980 856 68 000 000 564 879 144 42,5% 50,8% 46,0%
6 Progr. déve. réseau transp. et réparti. élect. 02-déc.-09 11-déc.-09 29-Apr-10 31-déc.-17 5,8 0,7 4,9 EUR 91 559 394 109 820 000 52 165 533 57 654 467 47,5% 67,0%
Projet de la centrale solaire de Ouarzazate 16-mai-12 19-nov.-12 19-nov.-12 31-déc.-16 3,3 0,7 6,2 EUR 140 065 364 168 000 000 49 628 764 68 000 000 50 371 236 49,6% 100,0%
Projet de la centrale solaire de Ouarzazate (CTF) 16-mai-12 19-nov.-12 19-nov.-12 31-déc.-16 3,3 0,7 6,2 USD 65 461 734 100 000 000 100 000 000 0 100,0% 100,0%
8 Complexe Solaire Ouarzazate NOORo II 03-déc.-14 19-déc.-14 19-déc.-14 31-déc.-19 0,8 0,1 0,5 EUR 61 138 189 72 000 000 11 543 210 60 456 790 16,0% 15,0%
Complexe Solaire Ouarzazate NOORo II (CTF) 03-déc.-14 19-déc.-14 19-déc.-14 31-déc.-19 0,8 0,1 0,5 USD 47 369 288 69 000 000 69 000 000 0 100,0% 40,0%
Complexe Solaire Ouarzazate NOORo III 03-déc.-14 19-déc.-14 19-déc.-14 31-déc.-19 0,8 0,1 0,5 EUR 23 775 962 28 000 000 1 660 365 26 339 635 5,9% 15,0%
Complexe Solaire Ouarzazate NOORo III (CTF) 03-déc.-14 19-déc.-14 19-déc.-14 31-déc.-19 0,8 0,1 0,5 USD 34 325 571 50 000 000 50 000 000 0 100,0% 40,0%
PERG 13-juin-12 19-déc.-12 19-déc.-12 31-déc.-16 3,3 0,7 6,3 EUR 112 552 525 135 000 000 95 823 370 39 176 630 71,0% 86,0%
Parc Eolien AL KOUDIA AL BAIDA 13-juin-12 19-déc.-12 19-déc.-12 31-déc.-16 3,3 0,7 6,3 EUR 41 686 120 50 000 000 6 869 614 43 130 386 13,7% 30,0%
Complexe Hydro M'Dez El Menzel 13-juin-12 19-déc.-12 19-déc.-12 31-déc.-16 3,3 0,7 6,3 EUR 61 695 458 74 000 000 74 000 000 0,0% 0,0%
Parc Eolien Tanger 2 13-juin-12 19-déc.-12 19-déc.-12 31-déc.-16 3,3 0,7 6,3 EUR 33 348 896 40 000 000 40 000 000 0,0% 0,0%
Step Abdel Moumen 13-juin-12 19-déc.-12 19-déc.-12 31-déc.-16 3,3 0,7 6,3 EUR 50 023 344 60 000 000 60 000 000 0,0% 0,0%
Parc Eolien AL KOUDIA AL BAIDA (FTP) 13-juin-12 19-déc.-12 19-déc.-12 31-déc.-16 3,3 0,7 6,3 USD 22 256 990 34 000 000 34 000 000 0,0% 38,0%
Complexe Hydro M'Dez El Menzel (FTP) 13-juin-12 19-déc.-12 19-déc.-12 31-déc.-16 3,3 0,7 6,3 USD 19 638 520 30 000 000 30 000 000 0,0% 0,0%
Parc Eolien Tanger 2 (FTP) 13-juin-12 19-déc.-12 19-déc.-12 31-déc.-16 3,3 0,7 6,3 USD 20 293 138 31 000 000 31 000 000 0,0% 0,0%
Step Abdel Moumen (FTP) 13-juin-12 19-déc.-12 19-déc.-12 31-déc.-16 3,3 0,7 6,3 USD 19 638 520 30 000 000 30 000 000 0,0% 0,0%
SECTEUR SOCIAL 2,9 1,2 1,1 1 625 806 1 850 544 1 113 735 60,2% 57,7% 0,1%
10 Appui strat. dével. enseig. Privés - DON PRI 11-mars-11 17-mars-11 09-juin-11 31-déc.-14 4,5 1,2 3,0 UC 470 406 470 406 470 406 0 100,0% 100,0%
11 Système Information Carte Sanitaire Don PRI 30-juil.-13 30-dec-13 30-dec-13 31-dec-16 2,1 0,2 UC 380 800 380 800 227 362 153 438 59,7% 60,0%
12 Université numérique UIR 10-oct.-13 27-fev-14 27-fev-14 31-dec-17 1,9 0,2 UC 774 600 774 600 246 632 527 968 31,8% 31,8%
SECTEUR EAU ET ASSAINISSEMENT 3,6 0,7 4,7 296 793 578 350 666 043 73 177 308 56 480 000 259 718 671 24,9% 40,8% 15,4%
Onzième Projet d'AEPA Rabat-Casa 12-mai-10 19-août-10 13-janv.-11 31-déc.-16 5,3 0,8 8,2 EUR 135 321 483 162 310 000 38 949 174 56 480 000 66 880 826 36,8% 60,0%
Onzième Projet d'AEPA Rabat-Casa 12-mai-10 19-août-10 13-janv.-11 31-déc.-16 5,3 0,8 8,2 USD 36 043 231 55 060 000 27 851 703 14 680 000 12 528 297 69,0% 60,0%
14 Douzième projet d'AEP de Marrakech 7-nov.-12 19-déc.-12 19-déc.-12 31-déc.-18 2,9 0,5 1,4 EUR 101 206 800 120 000 000 9 193 152 110 806 848 7,7% 10,0%
Douzième projet d'AEP de Marrakech 7-nov.-12 19-déc.-12 19-déc.-12 31-déc.-18 2,9 0,5 1,4 USD 24 017 070 37 000 000 5 666 322 31 333 678 15,3% 10,0%
15 Etude schéma directeur AEP MOULOUYA- DON 10-janv.-13 22-mai-13 22-mai-13 31-déc.-15 2,7 0,9 4,4 UC 204 994 204 994 204 994 0 100,0% 100,0%
SECTEUR MULTISECTEUR 3,6 0,9 2,7 2 558 772 86 141 412 85 236 799 904 614 98,9% 77,7% 3,8%
16 Projet d'améliorat. du syst. de garantie - DON PRI 19-janv.-11 17-mars-11 17-mars-11 31-déc.-15 4,7 0,9 1,9 UC 464 988 464 988 464 988 0 100,0% 100,0%
17 Projet de renf. du contr. marché. fin. - DON PRI 13-déc.-10 17-mars-11 17-mars-11 31-déc.-14 4,8 1,2 3,1 UC 480 350 480 350 480 350 0 100,0% 100,0%
18Appui à la modernisation du cadre organisationnel
de gestion de la dette - DON PRI27-févr.-13 31-mai-13 31-mai-13 31-déc.-18 2,5 0,4 3,1 UC 536 976 536 976 79 705 457 271 14,8% 30,0%
19Etude sur la croissance et l' emploi au Maroc -
DON PRI 27-juin-12 7-sept.-12 7-sept.-12 31-déc.-15 3,2 0,9 2,4 UC 587 200 587 200 587 200 0 100,0% 100,0%
PACEM 8-juil.-15 28-juil.-15 31-déc.-16 112 500 000 112 500 000 83 250 000
Appui à la Primature (Don PRI)
Etude Stratégique DTFE (DON PRI) 21-mai-15 28-juil.-15 31-déc.-17 UC 797 600
20Projet d'Appui à l'élaboration du code monétaire et
financier marocain - DON PRI20-sept.-12 19-déc.-12 19-déc.-12 31-déc.-15 3,0 0,9 3,0 UC 489 258 489 258 145 986 343 272 29,8% 60,0%
SECTEUR PRIVE 4,9 0,9 7,8 177 133 336 198 877 124 189 600 000 10 391 000 95,3% 95,3% 8,7%
21 Fond Argan pour le développement des infrast. 17-févr.-10 21-juil.-10 21-juil.-10 31-déc.-18 5,6 0,6 5,1 EUR 13 479 000 15 000 000 4 609 000 10 391 000 30,7% 30,7%
22 Prêt à l'Office Chérifien des Phosphates 29-juin-11 10-mai-12 10-mai-12 10-mai-15 4,2 1,1 10,5 USD 163 654 336 250 000 000 250 000 000 0 100,0% 100,0%
Récapitulatif: Répartition sectorielle des opérations Approbations (millions EUR) Situation des décaissements
Montant du portefeuille Total %
En Unités de compte 1 551 105 385 100,0%
Prêts (11 projets) 1 545 724 413 99,7%
Dons (11 projets) 5 380 972 0,3%
En Euros 2 045 188 766
Actuel Proj. 2015
Montant Total des décaissements en Euros 913 924 142 1 169 714 630
Prêts 909 451 188 Dons 4 472 953
Taux de décaissement global 44,69% 57,2%
Prêts 44,62% Dons 63,65%Montant moyen par prêt (en UC) 140 520 401
Delai moyen de mise en vigeur (mois) 4,2 Prêts 5,7 Dons 2,3Age relatif du portefeuille (an) *** 0,8
Age moyen du portefeuille (an) 4,0 Prêts 4,4 Dons 3,4
MAROC - PORTEFEUILLE DES OPERATIONS EN COURS D'EXECUTION AU 14 Septembre 2015
Nbre Nom du ProjetDate
d'approbation
Date de
signature
Date de
mise en
vigueur
Date de
clôture
Age
moyen
projet
(an)
Age
relatif
du
projet
(an)
delai
mise en
vigeur
(mois) en Unités de
compte
en monnaie du
prêt (total par
sect. en EUR)
ActuelProject.
2015
Montant approuvé Décaissement
cumulé en
monnaie du
prêt par projet /
en euro par
secteur
Annulation en
monnaie du
prêt
Montant non
décaissé en
monnaie du prêt
par projet /en
EUR par secteur
7
9
13
Taux décaissements
cumulés (en %) Part
dans le
portefe
uille
Monnaie
du prêt
158
643 634
476
1091
2008 2009 2010 2011 2012
Agric; 6,6%
Transp.; 24,3%
Energ.; 33,7%
Eau/ass.; 21,3%
Multisect.; 5,2%
Sect. privé; 8,8%
71%
50% 51%58%
41%
78%
95%
60%
48%
31% 30%
60%
22%
69%
95%
35%
Tx déc. prév. fin 2015 Tx de décais. 09 Juin 2015
643 634
476
1091
231
321
2009 2010 2011 2012 2013 2014
Agric; 2,5%
Transp.; 24,6%
Energ.; 47,7%Social;
0,1%
Eau/ass.; 15,9%
Multisect.; 0,1%
Sect. privé; 9,0%
III
ANNEX III: MAIN RELATED PROJECTS FINANCED BY THE BANK AND OTHER
DEVELOPMENT PARTNERS OF MOROCCO OVER THE LAST TEN YEARS
FINANCING Date of
signature Amount
BANK EUR million
Marrakech - Agadir Highway Construction Project 15/12/2006 118.60
National Rural Roads Programme (PNR II) 23/11/2007 45
Third Airport Project 08/05/2009 240
Project to increase the capacity of the Tangier-Marrakech railway 17/03/2011 300
Preparation of a programme to strengthen and repair the
infrastructure of 7 (seven) ports 17/03/2011 0.70
Nador West Med Port Complex Construction Project - 112.86
EIB EUR million
National Rural Roads Programme - Phase II - A 17/06/2005 60
Highway Project IV - Tranche B 17/06/2005 70
Fès-Oujda V Highway Construction Project 31/10/2007 180
Tangier Med Port 2nd Terminal Project 24/06/2008 40
National Rural Roads Programme II - B 05/12/2008 60
Highway project VI 22/10/2009 225
Rabat Tramway 22/12/2009 15
Highway project VII 10/11/2010 220
Tangier Med Port 2nd Terminal Project - 2 15/11/2010 200
National Rural Roads Programme II - C 17/05/2012 100
El Jadida-Safi Highway 14/12/2012 240
Road Modernization Programme 19/03/2014 150
Zenata Town Urban Development Project 13/11/2014 7.5
IBRD USD million
National Rural Roads Programme - Phase II - A 12/04/2006 238.07
Promotion of accessibility 03/02/2012 2.85
National Rural Roads Programme - Phase II - B 22/07/2014 95.61
EBRD EUR million
Nador West Med Port Complex Construction Project - 200
JBIC-JICA JPY million
Marrakech - Agadir Highway Construction Project 31/03/2006 17.726
National Rural Roads Programme 15/03/2007 8.439
Arab Fund for Economic and Social Development
(AFESD)
USD million)
Marrakech - Agadir Highway Construction Project 13/03/2006 115.6
Fès-Oujda Highway Construction Project 15/03/2007 111.9
Rabat - Casablanca Highway - 2x3 Lanes Development Project 01/12/2008 74.6
Tangier-Casablanca high-speed train 14/02/2012 108.22
El Jadida-Safi Highway 17/04/2012 108.01
Nador West Med Port Complex Construction Project - 199.01
Kuwait Fund (KFAED) USD million
Marrakech - Agadir Highway Construction Project 20/03/2006 56
Fès-Oujda Highway Construction Project 13/12/2006 56
Road Improvement Project 26/06/2013 125
Port Improvement Project 26/06/2013 455
Saudi Fund (SDF) USD million
Tangier-Casablanca high-speed train 29/02/2012 200
IV
Oujda-Nador Highway Project 11/03/2013 61
Expansion of Sidi Ifni Port 10/10/2014 40
Islamic Development Bank (IsDB) USD million
Marrakech - Agadir Highway Construction Project 01/06/2006 106
Fès-Oujda Highway Construction Project 01/05/2007 124
Second National Rural Roads Programme 05/02/2013 11.06
Rehabilitation and Expansion of Jorf Lasfar Port 27/02/2013 150
Natixis EUR million
Supply of double trainsets for the Casablanca tramway network 20/01/2012 24.14
BNP-Paribas EUR million
Supply of double trainsets for the Casablanca tramway network 02/02/2012 13.65
AFD EUR million
Tangier - Tangier Med New Port Railway Line Project 24/03/2004 25
National Rural Roads Programme (PNR II) 13/02/2004 50
Casablanca-Tangier High-Speed Railway Line Project 13/07/2012 220
Rehabilitation projects for six ports (Tangier, Nador, Safi, Jorf
Lasfar, Kenitra and Cala Iris) 13/12/2012 50
Casablanca Tramway Project 13/12/2012 23
Portugal EUR million
Railway transport: electrification of the Ksar El Kébir/Tangier
segment and Tangier/Tangier-Mediterranean Port Liaison 31/07/2012 6.7
Railway transport: Tangier / Sidi Kacem line: VU
Tangier / Mechraa Bel Ksiri and RAVG D'el Akba, Asilah, Rissani
and Arbaoua
31/07/2012 10.39
Spain EUR million
Studies, supplies, works, testing and commissioning of safety and
signalling facilities in Casablanca Station 16/09/2013 3.33
V
ANNEX IV: MAP OF THE PROJECT AREA
The staff of the ADB Group have provided this map for the exclusive use of readers of this report to which it is appended.
The appellations and the demarcations on this map do not imply any judgment on the part of the ADB Group and its
members concerning either the legal status of a territory or the approval or acceptance of its boundaries.
Project highway: Phase 2
Phase 1: Cameroon side