morocco drinking water quality and …...country and project title: morocco - drinking water quality...
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AFRICAN DEVELOPMENT BANK
MOROCCO
DRINKING WATER QUALITY AND SERVICE IMPROVEMENT PROJECT
APPRAISAL REPORT
OWAS DEPARTMENT
May 2016
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TABLE OF CONTENTS
Acronyms and Abbreviations, …………............................................................................…………. i
I – Strategic Thrust and Rationale ....................................................................................................... 1
1.1. Main Development Challenges ............................................................................................. 1
1.2. Project Linkage with Country Strategy and Objectives ........................................................ 2
1.3. Rationale for Bank Involvement ........................................................................................... 2
1.4. Aid Coordination................................................................................................................... 3
II - Project Description ........................................................................................................................ 3
2.1. Project Components .............................................................................................................. 3
2.2. Technical Solutions Adopted and Alternative Solutions Considered ................................... 4
2.3 Type of Project / Instrument ................................................................................................. 5
2.4. Project Cost and Financing Mechanisms .............................................................................. 5
2.5. Project Area and Beneficiaries .............................................................................................. 7
2.6. Participatory Approach to Project Identification, Design and Implementation .................... 8
2.7. Bank Group Experience and Lessons Reflected in Project Design ...................................... 8
2.8. Key Performance Indicators ................................................................................................ 10
III - Project Feasibility ....................................................................................................................... 11
3.1. Economic and Financial Performance ................................................................................ 11
3.2. Environmental and Social Impact ....................................................................................... 11
IV – Implementation .......................................................................................................................... 14
4.1. Implementation Arrangements ............................................................................................ 14
4.2. Monitoring .......................................................................................................................... 16
4.3. Governance ......................................................................................................................... 17
4.4. Sustainability ....................................................................................................................... 17
4.5. Risk Management ............................................................................................................... 18
4.6. Knowledge Development .................................................................................................... 19
V – Legal Framework ........................................................................................................................ 19
5.1. Legal Instrument ................................................................................................................. 19
5.2. Conditions Associated with the Bank’s Intervention .......................................................... 19
5.3. Conformity with Bank Policies ........................................................................................... 21
VI – Recommendation ....................................................................................................................... 21
Annex I. Development Indicators of Morocco .............................................................................. I
Annex II. Table of the AfDB's Active Portfolio in Morocco (End-February 2016) ...................... II
Annex III. Major Related Projects Financed by the Bank and Other Development Partners
of Morocco ................................................................................................................... III
The information and data in this report were collected by the project team, led by Mr. Belgacem BENSASSI, Chief Water and
Sanitation Engineer, Project Officer, following a preparation mission to Morocco from 2 to 13 March 2015 and an assessment
mission from 23 November to 4 December 2015.
Currency Equivalents December 2015
UA 1 = MAD 13.8232
UA 1 = EUR 1.29707
UA 1 = USD 1.37217
Fiscal Year
1st January – 31st December
Weights and Measures
1 km = kilometre = 1000 m
1 km2 = square kilometre = 1000 m2
1 ha = hectare = 10,000 m2
1 lm = linear metre
1 m3 = cubic metre
1 m3/d = cubic metre per day
1 hm3 = million cubic metres
l/s = litres per second
inhab/ha = inhabitants per hectare
l p/d = litres per person per day
i
Acronyms and Abbreviations
AFD = French Development Agency
AFESD = Arab Fund for Economic and Social
Development
ARP = Abbreviated Resettlement Plan
BD = Bidding Documents
CSP = Country Strategy Paper
DWS = Drinking Water Supply
EBRD = European Bank for Reconstruction and
Development
EIB = European Investment Bank
ERR = Economic Rate of Return
ESMP = Environmental and Social Management Plan
EU = European Union
FIRR = Financial Internal Rate of Return
GIS = Geographic Information System
GIZ: German Agency for International Cooperation
IBRD = International Bank for Reconstruction and
Development
IsDB = Islamic Development Bank
ISS = Integrated Safeguards System
IWRM = Integrated Water Resource Management
JICA = Japanese International Cooperation Agency
KFW = Kreditanstalt für Wiederaufbau
[German Public Investment Bank]
MAFO = Morocco Field Office (AfDB)
MEMEE = Ministry of Energy, Mines, Water
Resources and the Environment
NHDI = National Human Development
Initiative
NSP = National Sanitation Programme
ONEE = National Electricity and Drinking
Water Authority
PAPMV = Green Morocco Plan Support
Programme
PNEEI = National Irrigation Water Saving
Programme
PP = Procurement Plan
SAP-EAU = Water Sector Adjustment Plan
SDF = Saudi Development Fund
SDGs = Sustainable Development Goals
TFP = Technical and Financial Partners
UA = Unit of Account
WHO = World Health Organisation
WTG = Water Thematic Group
ii
Project Information Sheet
Client Information
BORROWER: National Electricity and Drinking Water Authority (ONEE)
EXECUTING AGENCY: ONEE (Water Branch)
GUARANTOR: Government of Morocco (Ministry of the Economy and Finance)
Financing Plan
Source Amount (UA) Instrument
AfDB
68.5 million
AfDB loan
ONEE 22.5 million -
EBRD (parallel financing) 12 million -
IBRD (parallel financing) 34 million -
TOTAL COST 137 million -
Key Financial Information of the AfDB
Loan currency
EUR
Loan* Type Fully Flexible Loan
(FFL)
Interest Rate Base rate + Financing
cost margin + Lending
margin + Maturity
premium
Base Rate 6-month EURIBOR
floating rate
Lending Margin* 60 basis points (0.6%)
Commitment Charge* None
Other Charges* None
Grace period 60 months
FIRR, NPV (base-case scenario): 7.5%
MAD 95 million
ERR (baseline scenario) 15.2% MAD 217 million
*if applicable
Duration – Main stages (projected)
Approval of concept note
November 2015
Project approval May 2016
Signing of loan and guarantee agreements June-July 2016
Effectiveness of the agreements September 2016
First disbursement September 2016
Completion December 2020
iii
PROJECT SUMMARY
General Overview of Project
1. The project to improve water quality and the performance of DWS systems in Morocco entails
strengthening and securing drinking water supply in several towns especially Bouznika, Ben Slimane,
Youssoufia and Safi and improving water quality within the Bouregreg system (artificial aeration at SMBA
dam and ozonation at the current treatment plant) and the performance of existing DWS systems (reduce
losses, optimize operation...). The project area includes all provinces along the Rabat-Casablanca highway
and especially the provinces of Bouznika and Ben Slimane (in the economic hub of Rabat-Casablanca) and
Youssoufia and Safi provinces (in the economic hub of Doukkala Abda) which are experiencing an
economic, tourism and industrial boom. It seeks to meet the drinking and industrial water needs of these
areas up to 2030. This project, which is estimated to cost UA 137 million, is scheduled to be implemented
over a period of 48 months (2016-2020).
2. Under its Component A, the project will benefit communities in the provinces of Bouznika and
Benslimane, estimated at 120,000 inhabitants in 2015 (including over 50,000 inhabitants in rural areas) and
of Youssoufia and Safi, estimated at 316,000 inhabitants in 2015 (including 202,000 inhabitants in rural
areas). Operations under component B will benefit communities in the area that lies between Morocco’s
two major cities (Rabat and Casablanca), which is the most populated and most urbanized part of the
country, estimated at 5 million inhabitants in 2015 (including approximately 1 million in rural areas).
Needs Assessment
3. The project was designed based on priority needs defined by ONEE (Water Branch) under its
Programme Contract with the State of Morocco for 2014-2017. The need to implement the project now is
essentially driven by the necessity to improve the quality of DWS services (especially the quality of
distributed water) for a population of almost five million people (along the Rabat-Casablanca highway
which is the most crucial region of the country from the demographic and economic standpoints), especially
in summer and early autumn and all the more so during periods of drought which have become more
frequent due to the effects of climate change in recent years. It is also driven by the need to ensure the
sustainability of the drinking water distribution service of ONEE (Water Branch) throughout the territory,
improve service by ensuring its continuity and cut the operating costs of DWS systems (reduce losses,
increase storage autonomy...).
Bank’s Value-added
4. The decision by ONEE (Water Branch) to propose that the Bank participate in financing this
project is motivated by the AfDB's proven advantage in the implementation of similar projects (with fairly
emergency operations in large and medium-sized cities). Such comparative advantage is clearly illustrated
in the implementation quality of recent projects financed by the Bank in the drinking water and sanitation
sector in Morocco, the most recent ones being the DWS consolidation project along the Rabat-Casablanca
highway approved in 2010 and the drinking water consolidation project in the region of Marrakech,
approved in 2012. Efforts are still needed to improve the procurement process and the latest policy on the
procurement of goods, works and services approved by the Bank's Board of Directors in October 2015, will
contribute significantly to this objective .
5. This operation will also serve as an opportunity for the Bank to intervene in the ONEE (Water
Branch) performance improvement programme currently supported by several partners in Morocco’s water
sector, namely IBRD, KFW, AFD, EIB, EBRD...
Knowledge Management
6. The project will enhance the experience of ONEE (Water Branch) in the implementation and
operation of drinking water supply and sanitation projects in urban and rural areas. The introduction of
innovative techniques such as ozonation, improvement of the output of various networks and the selection
of more economical alternatives reflect the effort of ONEE (Water Branch) to build on its achievements in
research and development and improve its project design and implementation skills.
iv
RESULTS-BASED LOGICAL FRAMEWORK
Country and Project Title: Morocco - Drinking Water Quality and Service Improvement Project Project Goal: Consolidate and secure DWS in several towns and improve water quality and the performance of existing DWS systems. RESULTS CHAIN PERFORMANCE INDICATORS MEANS OF VERIFICATION RISKS /
MITIGATION MEASURES Indicator (including ISCs) Baseline Situation Target
IMP
AC
T
The socio-economic and sanitary living
conditions of the communities are
improved through securement of
drinking water in the urban and rural
areas concerned.
1. Percentage of household health expenditure
(contribution of water quality)
2 Net enrolment ratio for girls (in rural and urban
areas)
3. Water-borne disease rate
4. Under-five mortality rate (contribution of water-
borne diseases)
5. Maternal mortality rate
6. Unemployment rate
7. Poverty rate
53% in 2014
82.7% (rural areas) and 99% (urban
areas) in 2014
22.9% in 2011
30 per 1,000 inhabitants in 2014
112 per 100,000 inhabitants in 2014
9.2% in 2013
8.9% in 2012
Less than 50% in 2020
90% (rural areas) and 99.5 % (urban
areas) in 2020
Less than 10% in 2020
Less than 25 per 1,000 inhabitants in
2020
50 per 100,000 inhabitants in 2020
Less than 7% in 2020
Less than 7% in 2020
National statistics
National statistics
Statistics from the Ministry of Health
Statistics from the Ministry of Health
Statistics from the Ministry of Health
National statistics
National statistics
OU
TC
OM
ES
1. The drinking water production and
supply systems for the towns of
Bouznika, Ben Slimane, Youssoufia,
Safi are secured and strengthened.
2. Quality of treated water at Bouregreg
complex improved.
3. Technical performance of existing
DWS systems improved.
1.1. Access to drinking water for urban communities
in the towns concerned.
1.2. Drinking water access rate for urban
communities in the towns concerned.
2. Quality of treated water (taste and smell)
3.1. Average output of ONEE (Water Branch) water
supply networks
3.2. Average output of ONEE (Water Branch) water
distribution networks
3.3. National energy ratio
100% in 2014 (including 51%
women)
92% in 2014 (including 51%
women)
Taste threshold ≥ 1 in 2014
95.13% in 2014
73.9% in 2014
0.618 kWh/m3 in 2014
100% in 20201
95% in 2020
Taste threshold <1 in 2020
95.7% in 2020
76.5% in 2020
0.649 kWh/m3 instead of 0.723
kWh/m3 in 2020 2
ONEE reports and statistics
Reports and statistics from the Authorities
National statistics
User surveys
Risks
- Preservation and availability of water
resources as well as integrated and optimal
management of these resources.
Mitigation Measures
- Implementation of SAP-Eau and State-ONEE
programme contract (2014-2017) measures as
well National Water Strategy action plans.
OU
TP
UT
S
1.1. Bouznika DWS reinforced
1.2. Ben Slimane DWS reinforced
1.3. Youssoufia DWS reinforced
1.4. Southern Safi DWS reinforced
1.5. BC2 and BC5 pipes rehabilitated
1.1. Water flow rate available.
1.2. Water flow rate available.
1.3. Water flow rate available.
1.4. Water flow rate available.
1.5. Number of interventions per year caused by
ageing pipe
407 l/s in 2014
190.5 l/s in 2014
137 l/s in 2014
0 l/s in 2014
2 to 3
507 l/s in 2018
340.5 l/s in 2018
377 l/s in 2018
40 l/s in 2018
None (0)
Quarterly project monitoring reports
provided by ONEE, Bank supervision
reports
Reports and statistics from MENEE and
other ministries concerned
Mid-term review report and project
completion report (PCR)
Risks
- Long delays in procurement of the necessary
lands.
- Long delays in the procurement of goods and
works.
- Limited experience of ONEE (Water Branch)
in artificial aeration and ozonation
Mitigation Measures
- Selection of the conduits and locations for the
piping and facilities (excluding towns and low-
value land) and commencement of the
procurement process before start of the project.
- Clear and precise definition of the various
stages of the procurement process, and of the
documents to be used (standard bidding
document models).
2.1. Artificial aeration installed at
SMBA dam.
2.2. An ozonation section installed at
the existing Bouregreg treatment plant
2.1. Eutrohication of SMBA dam
2.2. Reduction of THM formation (following
reduced use of chlorine)
O2 = 0 mg / l and H2S from the
bottom intake in 2014
Non-availability of a bottom outlet
from the inlet water tower
THM index ≥1 in 2014
O2 ≥ 4mg/l and absence of H2S from
the bottom intakes 2018
THM index3<1 in 2018
1 Maintaining the urban access rate at 100% requires extra effort to meet the water needs of the additional population and of new economic activities (tourism, industry ...) programmed for 2020. 2 That is to say, if the project is not executed, the energy ratio will amount to 0.726 kWh/m3; in order words ONEE (Water Branch) will gain 0.074 kwh/m3 thanks to the project. 3 THMs are by-products of water chlorination formed primarily when chlorine reacts with organic substances (humic and fulvic substances) present in water (Health Canada, 1993). The recommended value by Moroccan standards is:
THM < 1.
v
OU
TP
UT
S (
con
t’d
)
3.1. Four treatment stations
rehabilitated.
3.2. Improved metering.
3.3. Leakages sought.
3.4. Output of distribution networks
improved.
3.5. Production facilities rehabilitated:
3.5.1 Water supply piping
3.5.2 Pumping stations
3.6. Storage capacity enhanced.
3.1. Hydraulic efficiency of the treatment stations
enhanced.
3.2 to 3.4 Average output of the water distribution
networks of ONEE (Water Branch)
3.5 &3.6. Storage capacity (hours per day)
In 2014: 74.56% (Taounate), 89.62
(Mkansa), 94 (Ain Gdah) and 80%
(Kria)
73.9% in 2014
Autonomy < 12 hours in 2014 (*)
95% in 2021 for the 4 stations
76.5 in 2018
Autonomy < 12 hours in 2019
- Reinforcement of the technical support team
with the required experts from the fields of
artificial aeration and ozonation.
KE
Y A
CT
IVIT
IES
COMPONENTS RESOURCES
A. Reinforcement of DWS systems of several urban areas
A.1. Reinforcement of the Bouznika DWS system (laying of pipes, building of the pumping station and reservoirs ...).
A.2. Reinforcement of the Ben Slimane DWS system (laying of pipes, building of the pumping station and reservoirs ...).
A.3 Reinforcement of the Youssoufia DWS system (laying of pipes, building of the pumping station and reservoirs ...).
A.4 Reinforcement of the Safi DWS system (laying of pipes, building of the pumping station and reservoirs ...).
A.5 Rehabilitation of BC2 and BC5 pipes (laying of pipes).
B. Improvement of the treatment quality at Bouregreg complex
B.1. Artificial aeration of SMBA dam (installation of aerators and piping, air compression facility ...).
B.2. Installation of an ozonation system in the existing pumping station (laying of pipes, installation of ozonation equipment ...).
C. Improvement of the performance of existing DWS systems
C.1. Rehabilitation of the 4 existing treatment stations.
C.2. Improvement of metering (large calibre mechanic and electronic).
C.3. Identification of leakages.
C.4. Improvement of the output of distribution networks.
C.5 Rehabilitation of production facilities.
C.6 Reinforcement of storage capacity.
D. Technical support
D.1 Implementation studies by companies approved.
D.2 Acceptance report signed, works attachments validated, monitoring reports prepared.
RESOURCES (in UA million)
- ADB loan: UA 68.5 million.
Kingdom of Morocco (ONEE): UA 22.5 million.
EBRD & IBRD (parallel financing): UA 46 million.
(*) The establishment of new production facilities can be justified in some cases by lack of pressure or low autonomy
vi
PROJECT IMPLEMENTATION SCHEDULE 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
Loan approval by the Board
Signature of loan agreement
Effectiveness of the loan agreement
First disbursement
1- Technical support (AAA)
Shortlist of consultancy firms
Consultation of consultancy firms selected
Assessment of bids
Award of contracts
Implementation of services
Drafting of completion of report
2- STRENGTHENING OF DWS SYSTEMS
BOUZNIKA DWS
Consultation of companies
Assessment of bids
Award of contracts
Works execution
Acceptance of works
BEN SLIMANE DWS
Consultation of companies
Assessment of bids
Award of contracts
Works execution
Acceptance of works
YOUSSOUFIA DWS
Consultation of companies
Assessment of bids
Award of contracts
Works execution
Acceptance of works
SAFI DWS
Consultation of companies
Assessment of bids
Award of contracts
Works execution
Acceptance of works
REHABILITATION BR
Consultation of companies
Assessment of bids
Award of contracts
Works execution
Acceptance of works
3- QUALITY IMPROVEMENT
ARTIFICIAL AERATION
Consultation of companies
Assessment of bids
Award of contracts
Works execution
Acceptance of works
OZONATION
Consultation of companies
Assessment of bids
Award of contracts
Works execution
Acceptance of works
4- PERFORMANCE IMPROVEMENT
TREATMENT STATIONS
Consultation of companies
Assessment of bids
Award of contracts
Works execution
Acceptance of works
METERS (SMALL AND LARGE SIZES)
Consultation of companies
Assessment of bids
Award of contracts
Works execution
Acceptance of works
IDENTIFICATION OF LEAKAGES
Consultation of companies
Assessment of bids
Award of contracts
Works execution
Acceptance of works
DISTRIBUTION NETWORKS
Consultation of companies
Assessment of bids
Award of contracts
Works execution
Acceptance of works
PRODUCTION FACILITIES
Consultation of companies
Assessment of bids
Award of contracts
Works execution
Acceptance of works
STORAGE CAPACITY
Consultation of companies
Assessment of bids
Award of contracts
Works execution
Acceptance of works
5-. PROJECT COMPLETION
Completion report of ONEE (Water Branch)
Completion report of the Bank
20202016 2017Description
2018 2019
1
REPORT AND RECOMMENDATION OF BANK GROUP MANAGEMENT TO THE BOARD OF
DIRECTORS CONCERNING A PROPOSAL TO AWARD A LOAN TO MOROCCO FOR THE
DRINKING WATER QUALITY AND SERVICE IMPROVEMENT PROJECT
Management hereby submits these reports and recommendations for a proposed loan of EUR 88.85
(approximately UA 68.5 million) to the National Electricity and Drinking Water Authority (ONEE) to
finance the Drinking Water Quality and Service Improvement Project in Morocco.
I Strategic Thrust and Rationale
1.1. Main Development Challenges
1.1.1 Morocco is a water-stressed country which constitutes the primary challenge to its development.
The rainfall is very low and water is unevenly distributed among the various regions of the
country. Drinking water production has increased threefold over the past three decades. Given the
projected trend of water needs for various uses, the storage capacity of the 140 dams should be strengthened.
Water scarcity projections are disturbing and the rate of renewable water resources per capita and per year
must rise to 625 m3/inhab/year in 2020 (the critical threshold being 1000 m3/inhab/year). Furthermore, the
quality of surface and particularly ground water has deteriorated. According to recent studies, an estimated
8% to 10% of the nitrogen used as fertilizer on farms leaches into the groundwater. Indeed, integrated water
resource management has emerged as the Number 1 environmental priority both in growth diagnosis and
in mid-term review of the 2012-2016 country strategy. This project will boost the development of
infrastructure that contributes to sustainable water management.
1.1.2 At the same time, Morocco has been experiencing steady urbanization for the past three decades.
The proportion of urban dwellers in the total population rose from 51.4% in 1994 to 60.3% in 2014, and
is projected to rise to 69% in 2050. This urbanization is partly driven by better living conditions in the
cities. Indeed, poverty remains a predominantly rural phenomenon in Morocco (14.5% compared to 4.8%
in urban areas in 2007). Access to basic services is also better in urban areas. For instance, the household
access rate to improved water sources in 2015 is 100% compared to 95% in rural areas. This is directly
reflected in the social indicators. The cities attract so many people because they are, above all, the driving
force of the Moroccan economy and are replete with opportunities for creating jobs with higher value added
and, consequently, better remuneration. Hence, cities account for over 75% of the national GDP.
1.1.3 However, regardless of this accelerated urbanization process, cities must continue to develop
inclusively. In that regard, the national “Cities without Slums” programme launched in 2004 has led to
more harmonious development of urban areas. As a result, some 54 cities were declared slum-free in 2015.
Meanwhile, the National Human Development Initiative (INDH), is implementing the “programme to
combat social exclusion in urban areas” which seeks to upgrade basic infrastructure (water, electricity,
roads,), improve access to education and health and create income-generating activities.
1.1.4 Consequently, the second development challenge is to avoid extremely wide disparities in access
to services between city suburbs (which have the poorest communities, including those generated by
rural exodus) and the city centres, between large cities and satellite towns (in interurban areas), and
between rural and urban areas. In fact, regular infrastructure upgrade is necessary, with priority given to
basic infrastructure. Access to drinking water in these increasingly urbanized areas is a major challenge
that has a predominant “gender” dimension because there is no sustainable access to water for the new
urban communities whose members very often come from poor backgrounds. Accordingly, this project
seeks to improve access to drinking water for poor communities in urban or rural and interurban areas,
comprising the Regions of Rabat-Casablanca, Bouzinka-Ben Slimane and Youssoufia-Safi.
2
1.1.5 Apart from these two challenges, growth diagnosis at the national level has revealed market
weaknesses with regard to innovation in Morocco.
In particular, the study reveals how the public sector, through better investment coordination can be the
vector of innovation within the economy by, for instance, promoting new technologies when providing
public services. In this regard, the project seeks to promote an innovative water treatment technique
(artificial water aeration in the dam and an ozonation system in the treatment stations[1]).
1.2. Project Linkage with Country Strategy and Objectives
1.2.1 Cognizant of the importance of sustainable water management, Morocco launched the reform of
its regulatory framework in 2015. Law No. 10-95 on water resources laid the foundation for integrated
water resource management (IWRM) that is more demand-driven. The bill to revise Law No. 10-95 on
water resources, drafted in 2015, will be used to: (a) clarify and simplify the conditions for using water
resources and the public water domain; (b) integrate provisions on groundwater preservation, rainwater
management, sanitation and recycling of wastewater, management of water-related risks and water
information systems. Consequently, this project will directly contribute to the implementation of some
provisions of this revised law.
1.2.2 Furthermore, a national water strategy for Morocco (2009) was prepared with the aim of
transforming the water sector through the development of alternative resources, rational management
of demand, increased production and better consideration of environmental factors. As regards drinking
water for example, an estimated water savings potential of 120 million m3/year, is possible through the
improvement of network performance, standardization and encouragement of the use of appropriate
technology, review of the pricing system and the improvement of water use efficiency. The
operationalization of this strategy is laid out in the Programme Contract between ONEE and the State for
2014-2017 and includes this project among the priority projects identified in this contract.
1.3. 1.3. Rationale for Bank Involvement
1.3.1 The Bank has always supported the country in its sustainable water resources management. The
Bank provides such support through technical assistance, investment projects and budget support. This
support is evident in: (a) the development of water-saving infrastructure, integrated water resource
monitoring and management frameworks and tools for recycling wastewater and facilitating groundwater
recharge within the agricultural sector which is the primary user of water (over 80% of mobilized
resources); (b) the development of infrastructure to ensure the efficient distribution of drinking water and
sanitation; and (c) the development of a legislative framework for water resource protection and
management. Beyond reform support provided by Law No. 10-95 on water resources within the PAPMV
(Phase II) in 2015, SAP-EAU, completed in 2008, laid the regulatory groundwork for: (i) better integrated
water resources management; (ii) pricing regulation of water use; and (iii) the reallocation of investment
budgets.
1.3.2 The Bank has developed extensive experience in Morocco within the drinking water and
sanitation subsector. Various ADB-financed projects enabled the Bank and ONEE (Water Branch) (ex-
ONEP) to create an interaction in the processing of various files (BDs, contracts, disbursement requests,
etc...) and to consolidate their relations, which have been further strengthened by the presence of the AfDB
Field Office (MAFO) in Rabat.
[1] within the Bouregreg water treatment system which is the largest in the country (and among the 10 largest in the world) and which supplies the region
starting from Rabat to Casablanca, representing over 5 million inhabitants, for an estimated output of approximately 150 Mm3/year.)
3
1.3.3 Furthermore, this project features on the list of projects approved under CSP 2012-2016 and is
fully consistent with the Bank's strategic thrust in Morocco as defined during the 2014 mid-term review
of the 2012-2016 Country Strategy. The first two components of this project, aimed at increasing water
supply (in quantity and quality), fall under Pillar II (infrastructure) which relates to reduction of spatial and
social disparities and promotion of innovation. The third component aimed at improving the performance
of existing DWS systems (search for leaks, improvement of output, rehabilitation of structures), will
support the crosscutting theme of the 2012-2016 country strategy which promotes the sustainability of water
resources. Furthermore, given its predominantly urban character, the project is consistent with the Bank's
urban strategy, especially in 2 of its 3 pillars relating to 'infrastructure' and 'governance '.
1.3.4 Lastly, this project will contribute to the implementation of the Ten-year Strategy and especially
the Bank’s High 5s. Indeed, the first component relating to the enhancement of drinking water supply in
several towns will guarantee the availability of water for several new industrial units planned, including a
new industrial zone in Bouznika. The second project component on the artificial aeration of dam water and
ozonation at the treatment station will introduce innovative infrastructure and industrialization of drinking
water production and treatment facilities and also encourages the use of appropriate technologies. The third
component on performance improvement seeks to increase the efficiency of DWS systems and ensure
sustainable and adequate water supply to vulnerable communities in semi-urban areas and the surrounding
rural areas. This will greatly enhance their living conditions given that such communities, which are
generally underprivileged, do not always have secure access to drinking water.
1.4. 1.4. Aid Coordination
1.4.1 The Moroccan Government has made substantial efforts to coordinate aid. Hence, it plans to set
up the Geographical Information System (GIS) for real-time monitoring of the operations of various
technical and financial partners (TFPs) by region, sector and amount. Donor aid is relatively well aligned
on the Government’s strategic priorities and there is no parallel project implementation unit. Several
bilateral and multilateral donors are involved in Morocco’s drinking water and sanitation sector, including
the AfDB, World Bank, EIB, EU, EBRD, AFD, KFW, JICA, IsDB, AFESD, SDF, Belgium and Spain.
Coordination between the various water sector donors is conducted through a Water Thematic Group (GTE)
co-chaired until 2015 by AFD and the EU. Since 2011, the Ministry delegate for water resources has
participated in the organisation of some meetings of this group, which is indicative of the growing
involvement of national institutions in sectoral dialogue. This thematic group meets regularly in Rabat to
discuss sector trends, focusing on country policy and strategies, intervention strategies and the activity
programme of each donor, to ensure greater coordination and harmonization of interventions in the water
and sanitation sectors. The Bank has regularly attended these meetings since the establishment of its field
office in Morocco in 2006 and since February 2016, following withdrawal of the EU from the chairmanship
of GTE, the AfDB and the World Bank take turns in chairing the GTE, alongside the Ministry in charge of
water resources and the AFD.
1.4.2 Furthermore, ONEE (Water Branch) has an investment programme designed under its 2014-2017
programme contract with the Moroccan Government. It funds this programme of the Ministry of the
Economy and Finance with the assistance of its traditional donors.
II Project Description
1.5. Project Components
The project will satisfy the drinking water needs of several towns (Bouznika, Ben Slimane, Youssoufia and
Safi) and improve the quality of water (artificial aeration and ozonation) and the performance of existing
DWS systems (reduce losses, optimize operation...). The various project components are presented in Table
4.1 below:
4
Table 2.1
Project Components and Costs
Name of component / sub-
component
Cost estimate
(UA million)
Cost estimate
(EUR million)
Description of Components
A Strengthening drinking water
supply in urban communities
Sub-component A.1:
Strengthening of the DWS
systems of Bouznika (including
rehabilitation of the upstream
supply pipes) and Ben Slimane
6.1 7.9 Supply pipes and related structures
Tanks (semi-submerged and elevated)
Pumping stations
Sub-component A.2:
Strengthening of the DWS system
of Youssoufia and southern Safi
43.8 56.8 Supply pipes and related structures
Equipment for pumping stations and tanks
Power lines
B B. Improvement of water quality
at Bouregreg complex
Sub-component B.1: Artificial
aeration at SMBA dam
1.4 1.8 Artificial aeration system (aerator and
piping)
Air compressor
Power line and transformer substation
Sub-component B.2: An
ozonation section installed at the
existing treatment plant
21.0 27.2 Ozone generators and related equipment
Irrigation structures and water inflow pipes
C Improvement of the performance
of existing DWS systems
Rehabilitation of treatment
stations; Strengthening of
production facilities;
Enhancement of storage
autonomy; Improvement of
network output; Installation of
metres; Search for leaks
60.9 79.0 Rehabilitation of raw water intake
structures and piping as well as treatment
station facilities
Rehabilitation of pumping stations
Rehabilitation of water supply pipes
Storage tanks
Electrical flow metres
Mechanical metres
Leakage identification mobile metres
D Institutional support & project
management
3.8 4.9 Studies, works control and supervision
Total, including contingencies 137.0 177.7
1.6. Technical Solutions Adopted and Alternative Solutions Considered
2.2.1 Component A:
Sub-component A.1: Strengthening of the DWS System of Bouznika and Ben Slimane
- For strengthening of the DWS system of Bouznika town, a single option is available, namely
strengthening the existing water supply structures connecting the Bouregreg complex to the
town, through rehabilitation of the Bouregreg DN500 water supply piping (between BC2
and BC5) and laying of DN400 pipes, as well as increase of the storage capacity through the
construction of a tank with a capacity of 2 x 2000 m3. Moreover, an elevated tank with a
capacity of 800 m3 will be constructed to serve the upper section of the downtown area,
following expansion of the city.
- For strengthening of the DWS system of Ben Slimane town, several alternatives have been
studied for strengthening the DWS system in the downtown area and water supply to rural
areas which are (or could be) connected to the facilities in Ben Slimane town. The multi-
criteria analysis facilitated selection of the option that strengthens the DWS system in the
downtown area (through facilities that are independent of the existing system).
5
Sub-component A.2: Strengthening of the DWS system of Youssoufia and Southern Safi
- For strengthening of the DWS system in Youssoufia province, the options studied differ,
depending on the design of the water supply network and the location of the intermediate
pumping station. The chosen option entails laying a water supply pipe across the city-centre
and setting up an intermediate pumping station outside the city. This option is advantageous
because: (i) it involves a shorter piping distance than the discarded option (city bypass) and
entails less land expropriation; (ii) it avoids crossing railway lines, which would be
impossible under the city bypass option; and (iii) it is cheaper than the “no intermediate
pumping station” option, in terms of investment, maintenance and repairs. Furthermore, the
chosen option has the advantage of an intermediate water storage capacity large enough to
supply water to the rural areas that lie upstream of the city.
- As regards strengthening the system in southern Safi province through high service canals,
the alternatives studied differ depending on the flow rate from existing boreholes. The
chosen alternative has the advantage of being cheaper and of strengthening the DWS systems
of all rural areas supplied by existing facilities.
2.2.2 Component B:
Sub-component B.1 - Artificial aeration at SMBA dam: Analysis of several scenarios for improving raw
water quality led to the adoption of a scenario that entails having hypolimnetic aeration around the existing
water intake structure which supplies water to the Bouregreg treatment station and the new intake structure
which supplies water to the planned Oum Azza treatment station (Annex C2). This solution facilitates the
extraction of raw water to be treated for drinking from the low-temperature and algae-free hypolimnion.
This means that the water would have optimum quality for treatment and be less costly to tap.
Sub-component B.2 - Ozonation facilities at the Bouregreg treatment station: Analysis of several scenarios
led to adoption of the option that entails building a complete ozonation section to treat water through pre-
ozonation (rather than prechlorination), (Annex C2).
2.2.3 Component C
Enhance the performance of existing DWS systems: The activities under this project were selected based
on the performance of Regional Directorates, with performance improvement operations spanning a period
of 3 years (2016-2020) and covering a large part of the Kingdom’s territory. Such operations target cities
and towns where ONEE (Water Branch) has the potential to achieve considerable performance gains,
especially in the output of distribution networks.
1.7. 2.3 Type of Project/Instrument
It is an investment project to be financed with AfDB, ONEE, IBRD and EBRD resources (parallel
financing).
1.8. 2.4. Project Cost and Financing Mechanisms
The total project cost, net of taxes and customs duties, is estimated at UA 137 million. The part to be
financed with AfDB resources is estimated at UA 68.5 million, of which UA 52.9 million is in foreign
exchange (77.2%) and UA 15.6 million in local currency (22.8%). It includes a 2% provision for physical
contingencies, 2% for price escalation in foreign currency and 3% for price escalation in local currency.
The cost was estimated based on detailed pre-project studies for Components A and B and on estimates of
the Regional Directorates for Component C.
6
Table 2.2
Estimated cost per component for the part financed by the Bank (net of taxes and customs duties)
Components UA million EUR million %
F.E. L.C. Total F.E. L.C. Total foreign
exchan
ge
Component A - Strengthening drinking
water supply in urban communities
9.4 2.8 12.2 12.19 3.63 15.82 77.0
Component B - Improvement of water
quality at Bouregreg complex
17.4 3.6 21.0 22.57 4.67 27.24 82.9
Component C - Improvement of the
performance of existing DWS systems
19.2 8.1 27.3 24.90 10.51 35.41 70.3
Component D - Technical support 3.7 0.0 3.7 4.80 0.0 4.80 100.0
Total baseline cost 49.7 14.5 64.2 64.46 18.81 83.27 77.4
Provision for implementation contingencies 2.3 0.7 3.0 2.98 0.91 3.89 -
Provision for price escalation 0.9 0.4 1.3 1.18 0.51 1.69 -
Total project cost 52.9 15.6 68.5 68.62 20.23 88.85 77.2
2.4.2 The project will be co-financed by the Bank, ONEE, IBRD and EBRD (in parallel financing).
Bank financing will amount to EUR 88.85 million (approximately UA 68.5 million) representing 50% of
the estimated project cost, while ONEE, IBRD and EBRD4 will finance the remaining 50%. The Bank will
finance 100% of the tax-exclusive costs of activities to be financed by the AfDB.
2.4.3 Paragraph 4.2.2 (ii) of the policy on expenditure eligible for Bank Group financing, approved by
the Board on 19 March 2008, requires that Bank funding should not exceed 50% of the total project cost.
Furthermore, paragraph 2.1.2 (ii) of the same policy requires that the Government's contribution should be
at least 50% of the project cost, unless special circumstances justify a different percentage.
2.4.4 The Bank financing to this project is limited to 50% of the total project cost (net of taxes).
Meanwhile, the national contribution (ONEE) is limited to 16% of the total project cost (net of taxes), while
the balance is financed by the EBRD and IBRD. This limited ONEE contribution is justified by the
country’s commitment to implement its global development programme, the gradual improvement of
ONEE’s financial situation and the significant allocations made to the drinking water and sanitation sector.
The 2014-2017 programme-contract signed on 26 May 2014 between ONEE and the Moroccan
Government attests to this commitment by allocating an investment budget of approximately MAD 20
billion (approximately EUR 1.9 billion) to the DWSS sector (ONEE (Water Branch)) over the 2014-2017
period.
Table 2.3
Financing Sources
Financing sources UA million EUR million %
F.E. L.C. Total F.E. L.C. Total total
AfDB 52.9 15.6 68.5 68.62 20.23 88.85 50.0
ONEE + EBRD + IBRD 50.0 18.5 68.5 64.85 24.00 88.85 50.0
Total project cost 102.9 34.1 137.0 133.47 44.23 177.70 100
4 ONEE: UA 22.5 million ≈ EUR 29.2 million; EBRD: UA 12 million ≈ EUR 15.6 million; IBRD: UA 34 million ≈ EUR 44.1 million.
7
Table 2.4
Project costs by expenditure category for the part financed by the Bank
Expenditure Categories UA million EUR million %
F.E. L.C. Total F.E. L.C. Total foreign
exchange
Works 25.9 12.1 38.0 33.59 15.70 49.29 68.2
Goods 20.1 2.4 22.5 26.07 3.11 29.18 89.3
Services 3.7 0.0 3.7 4.80 0.0 4.80 100.0
Total base cost 49.7 14.5 64.2 64.46 18.81 83.27 77.4
Provision for implementation
contingencies 2.3 0.7 3.0 2.99 0.90 3.89 -
Provision for price escalation 0.9 0.4 1.3 1.17 0.52 1.69 -
Total project cost 52.9 15.6 68.5 68.62 20.23 88.85 77.2
Table 2.5
Expenditure schedule by component (in EUR million) for the part financed by the Bank
Components 2016(*) 2017 2018 2019 2020
Strengthening drinking water supply in urban areas
1.30
2.59
4.15
5.19
2.59
Improvement of water quality at Bouregreg complex
0
3.89
6.48
12.97
3.89
Improvement of the performance of existing DWS systems 5.06 8.30 10.38 9.08 2.59
Technical support 0.39 1.04 1.05 1.03 1.30
Total base cost 6.75 15.82 22.06 87 37
Provision for implementation contingencies 0.39 0.78 1.03 1.17 0.52
Provision for price escalation 0.13 0.26 0.39 0.65 0.26
Total project cost 7.27 16.86 23.48 30.09 11.15 (*) Only applies to the 2nd semester.
1.9. Project Area and Beneficiaries
The project area includes all provinces along the Rabat-Casablanca highway and especially the provinces
of Bouznika and Ben Slimane (in the economic hub of Rabat-Casablanca) as well as Youssoufia and Safi
(in the economic hub of Abda Doukkala) for Components A and B, and practically the entire Moroccan
territory for Component C.
2.5.2 For the Rabat-Casablanca segment, the project will improve water quality (through Component B)
for the area which lies between the two major cities of Morocco, namely Rabat and Casablanca. This area
is considered to be the most populated and most urbanized part of the country and is experiencing significant
economic, tourism and industrial development (about 60% of the national industrial fabric, Bouregreg
valley project, Bouznika tourist resort...). It also has major backbone infrastructure that promotes
development (motorways, railways, airports...). The Rabat cluster consists mainly of the towns of Rabat,
Salé, Bouknadel, Témara, Skhirat, Sidi Yahia, Zaer and Rommani, while the Casablanca cluster consists
mainly of the towns of Casablanca, Mohammedia, Bouznika, Benslimane and Aïn Aouda. The beneficiaries
of the project, who were approximately 5 million inhabitants in 2015, will exceed 8 million in 2030,
including approximately one million in rural areas.
2.5.3 Furthermore, under Component A, the project will strengthen the DWS systems in the provinces
of Bouznika and Benslimane, which had approximately 120,000 beneficiaries in 2015 and will have close
to 150,000 by 2030, including over 50,000 in rural areas.
2.5.4 Similarly, Component A will strengthen the DWS system in Youssoufia province which includes
the town of Youssoufia, the three urban centres of Chemaia, Sidi Ahmed and Ighoud as well as eight rural
communes (Atiamim, El Gantour, Esbiaat, Lakhoualqa, Ras El Ain, Ighoud, Jnane Bouih and Sidi Chiker).
It will also strengthen the DWS system in Safi province (to the South) which includes the town of Tnine
Ghiate and the neighbouring douars in the rural municipalities of El Ghiate, Lamaachate and Touabet. The
8
beneficiaries in Youssoufia province were approximately 269,000 inhabitants in 2015 (including 168,000
inhabitants in rural areas). The beneficiaries in Safi province (to the South) were approximately 47,000
inhabitants in 2015 (including 34,000 inhabitants in rural areas).
2.5.5 Lastly, Component C will affect virtually all Moroccan territory and the specific beneficiaries of
the portion financed by the Bank under the performance improvement programme for ONEE (Water
Branch) will be determined at the beginning of each year based on the operations selected by the Regional
Directorates of ONEE and included in this project.
1.10. Participatory Approach to Project Identification, Design and Implementation
2.6.1 The Bank's preparation and appraisal missions facilitated the holding of multiple meetings
involving all stakeholders, namely: the various departments of ONEE (Water Branch), the Water
Department of MEMEE and some development partners involved in the financing of ONEE programmes,
such as the performance improvement programme. The purpose was to listen to their concerns and factor
them into the design and execution of the project. These meetings and consultations highlighted the main
concerns of stakeholders and beneficiaries, namely to: (i) improve the quality of drinking water in areas
connected to the network; (ii) ensure water supply to several new settlements (housing areas, industrial
units...); and (iii) ensure access to affordable drinking water for disadvantaged semi-urban and rural
communities.
2.6.2 In addition to the various awareness-raising and communication campaigns carried out during
feasibility studies and design of the detailed survey plan, which acquainted the communities with the
characteristics and objectives of the project, ONEE (Water Branch) will also ensure that local communities
are informed prior to the commencement of works, through their municipalities and/or local authorities,
about the nature of the works, possible damage and related compensations and the need to organise
themselves to benefit from the project (temporary jobs, etc.). Subsequently and throughout the works, the
project contractors must maintain this consultation with local communities (this requirement will be
included in the works contract provisions). Communication must focus essentially on: (i) the nature and
duration of works; and (ii) the precautions to be taken as regards movement of project vehicles and
machinery.
2.6.3 Furthermore, information, awareness and education campaigns are necessary to avoid water
wastage and pollution. Such campaigns will focus on: (i) promoting a culture of respect for water and a
positive water use behaviour; and (ii) promoting hygiene-friendly attitudes and behaviour. Direct on-site
actions with various target groups should be promoted through communication of messages like: “drinking
water is vital to health; it is a common right; and it should be used responsibly”. The target groups are: (i)
children and youth (schools, holiday camps, facility visits...); (ii) women (women's centres, associations,
youth centres...); (iii) customers (customer guide...); (iv) the media (press day, dispatch of brochures...); (v)
public and private stakeholders; and (vi) policymakers, elected officials and other partners (information
day...). For these campaigns, consideration will be given to the variety of socio-cultural data, manners and
customs, habits and the people's readiness to participate in community actions.
1.11. Bank Group Experience and Lessons Reflected in Project Design
2.7.1 Performance in the implementation of recent projects with ONEE (Water Branch) is deemed to be
satisfactory overall. ONEE (Water Branch) is conversant with Bank policies and procedures and the studies
it conducted are of good quality. The main recommendations made in previous project completion reports
and especially the last 4 (7th, 8th, 9th and 10th DWS projects) boil down to: (i) strengthening technical support
and ensuring its availability prior to works commencement and right up to project completion; and (ii)
strengthening project supervision missions (especially the number of experts) and ensuring better
monitoring of project execution. These recommendations were taken into account in recent ongoing
projects financed by the Bank in the sector (Rabat-Casablanca DWS project and Marrakech region DWS
project) and will also be factored into the present project, with the assistance of the Bank's field office in
Morocco (MAFO). An independent appraisal of the results of 3 DWS projects financed by the Bank in
9
Morocco (8thand 9th DWS projects and the Water Sector Adjustment Programme (SAP-EAU)) is underway
and the results, expected in the first half of 2016, will be factored into the implementation of this project.
2.7.2 Since the beginning of its intervention in Morocco, the Bank has financed 13 operations in the
DWSS sector, bringing the total amount of its DWSS commitments to approximately EUR 1 billion (MAD
11 billion). These projects have secured a 99% drinking water access rate in urban areas while raising the
rate in rural areas from 14% in 1990 to 94.5% currently. They have also raised the sanitation access rate in
urban areas from less than 50% in 1990 to over 70% currently. The facilities constructed under the various
Bank-financed projects have ensured sustainable drinking water supply to several towns in Morocco (Rabat,
Casablanca, Marrakech, Tangier, Tetouan, Beni Mellal, Fes, Meknes, Oujda, Settat, Khénifra, Kenitra,
Essaouira, Ouarzazate, Khouribga, Tan, Tahanaout, Azilal, ...), facilitated access to drinking water in
previously unconnected rural areas, improved community health conditions and protected and preserved
water resources.
2.7.3 The two water supply projects currently underway, have experienced difficulties related to: (i)
default by one of the works companies and delay in the land expropriation process for the Rabat-Casablanca
DWS project; and (ii) bottlenecks in the procurement process for the Marrakech water project. The 2014
and 2015 delays in the procurement and expropriation processes of the Rabat-Casablanca and Marrakech
projects stem mainly from the nature of these 2 projects, characterized by a limited number of major
structures that are somewhat technically complex and involve substantial amounts and by the expropriation
of highly valuable land located in the 3 largest cities of the country (Rabat, Casablanca and Marrakech).
2.7.4 This situation has improved significantly since the end of 2015 with (i) acceleration of the
implementation rate of the Rabat-Casablanca project after replacement of the defaulting Contractor and
revival of the stalled expropriation process; and (ii) acceleration of the procurement process, with a
commitment rate that has just reached 49%. Both projects, currently flagged for their low disbursement rate
and low commitment respectively, will be struck off the list of flagged projects in April 2016 since the
disbursement rate of the Rabat-Casablanca project will exceed 60% thanks to the ongoing processing of
payment requests and the commitment rate of the Marrakech project will exceed 50% upon signature of the
next contract expected in April 2016.
2.7.5 This specificity (technical complexity and high-value land) does not apply to the new project
covered by this report, which is rather characterized by a large number of small-sum procurements and the
acquisition of low-value lands with a smaller surface area (Annex B5).
2.7.6 Based on these achievements, the main lessons to be learnt from the partnership between the Bank
and ONEE (Water Branch) focus on the need to build the capacity of ONEE (Water Branch) staff, primarily
in monitoring and evaluation and post-evaluation of projects. In this regard, a partnership project between
the Bank’s IDEV Department and the Audit and Organisation Department of ONEE (Water Branch) was
initiated following a Bank mission conducted in December 2009 that led to the adoption of an action plan,
followed by the organisation of several seminars. The actions proposed in this plan are intended to assist
ONEE (Water Branch) in the development of an evaluation policy, a system that ensures the internal
organisation and management of appraisal missions and to develop the capacity to engage in monitoring
and evaluation and retrospective evaluation. Since then, several exchanges and capacity building missions
have taken place, with ONEE (Water Branch) experts attending workshops organised by the Bank in
Morocco and at its headquarters. The most recent exchange in which ONEE (Water Branch) participated
concerns the organisation of a regional workshop to evaluate the outcomes of DWSS projects, which led to
the publication of a report in June 2015 on the evaluation of the results of DWSS projects reflecting best
practices from Bank-financed projects in Morocco’s water sector.
2.7.7 With regard to the Bank’s overall portfolio in Morocco, the rating for 2015 remains satisfactory,
according to the Country Portfolio Performance Review (CPPR) of 2015. The monthly “Flashlight Report”
ranks the Bank's portfolio in Morocco among the most effective portfolios throughout 2015.
10
This ranking of the Flashlight Report is also justified by satisfactory results in the implementation of
operations (average PI score of 2.42) and good performance in the attainment of the development objectives
(DO) of projects (average DO score of 2.6). To build on this performance, efforts must be stepped up to
improve portfolio implementation through continuous capacity building in the area of procurement for
some executing agencies and comprehensive and rigorous preparation of operations at commencement by
systematically anticipating procurements with a realistic disbursement plan within the framework of
application of the new PD 02/2015.
2.7.8 As regards fulfilment of the conditions precedent to first disbursement, performance in the
fulfilment of loan conditions remained highly satisfactory in 2015. The average loan effectiveness period
continued to decline globally from 4.9 months in 2014 to 4.2 months in 2015 (which is below the maximum
period of 6 months required by PD 02/2015).
1.12. Key Performance Indicators
In the Short Term
2.8.1 The project will ultimately yield an additional flow rate of 100 l/s for Bouznika, 150 l/s for Ben
Slimane, 240 l/s for Youssoufia, and 40 l/s for the southern region of Safi. It will also improve the output
of the supply and distribution networks of ONEE (Water Branch), from 95.13% (supply networks) and
73.9% (distribution networks) in 2014 to 95.7% and 76.5% respectively in 2018.
2.8.2 Furthermore, the project will slow down eutrophication at the SMBA dam by increasing oxygen
(O2 increase from a negligible amount to a minimum of 4 mg/l and H2S eliminated from the bottom intake
structures in 2018), and curbing THM formation at the "Bouregreg” treatment plant by reducing its value
to less than 1, in keeping with Moroccan standards.
In the Medium Term
2.8.3 The project will maintain the drinking water access rate at approximately 100% in urban areas (the
towns concerned) and increase the rural rate (provinces concerned) from 92 % to 95%. It will maintain the
drinking water access rate in urban areas at 100% by providing an additional supply of drinking water that
meets the changing needs of the regions. In other words, non-implementation of the project will reduce the
drinking water access rate by a few points in the area concerned.
In the Long Term
2.8.4 The main project performance indicator is the drinking water access rate at the national level that
will be maintained at 100% in urban areas and raised to almost 100% in rural areas by 2030.
2.8.5 Furthermore, the project will contribute to a significant reduction in the under-five mortality rate
(contribution of water-borne diseases) from 30 deaths per 1000 in 2014 to less than 25 deaths per 1000 as
from 2020 and reduce health spending as a percentage of household expenditure (contribution of water
quality) from 53% in 2014 to less than 50% in 20205.
5 According to the Ministry of Health
11
III Project Feasibility
1.13. Economic and Financial Performance
Table 3.1
Key Economic and Financial Data
IRR 7.5% NPV: MAD 95 million
ERR: 15.2% NPV: MAD 217 million
Nb: The detailed calculations are found in Annex B7
3.1.1 The project has three additional investment components to: strengthen existing water production
facilities in order to supply drinking water to urban and rural communities in four provinces; rehabilitate
existing DWS systems and treatment stations; and improve water quality at the Bouregreg facility by
introducing aeration and ozonation systems. It will generate many financial, socio-economic and
environmental benefits. Furthermore, it will enable ONEE (Water Branch) to strengthen its productive base
and its financial indicators and implement its development strategy, with a view to securing drinking water
supply, improving the productivity and output of its production and distribution systems and introducing
innovative technology to improve service quality in the most developed region of the Kingdom (Rabat-
Casablanca highway), given its administrative, political, socio-economic and tourism benefits. The
project’s externalities are numerous, namely: the creation of temporary and permanent jobs; continuity of
service; optimization of investments and resources; improved output; loss reduction; and reinforcement of
the commercial, industrial, tourism and agricultural fabric of the regions concerned.
3.1.2 The project’s financial rate of return is acceptable, making it possible to service the debt and cover
recurrent expenditure. Its cumulative financial internal rate of return (FIRR) for all components amounts to
7.5% and the net present value is estimated at MAD 95 million. The profitability of the three project
components has been consolidated, taking into account the nature of the additional components, which are
geared towards the common goal of improving drinking water supply in terms of quantity, quality and
continuity.
3.1.3 The economic rate of return (ERR) stands at 15.2% with a net present value of MAD 216,958
million. This rate is calculated based on the same data used to calculate financial profitability, with a 0.9%
adjustment for costs in local currency, rollover of investment costs in foreign currency and adjustment of
the economic value of water by a coefficient of 1.1, representing the consumer surplus. Also factored into
the calculation were the value of workdays generated during project implementation and the impact of
continuing economic activities in the area supplied by the Bouregreg complex through the introduction of
new ozonation technology that will eliminate the dependence of ONEE (Water Branch) on a single supplier
of chlorine and expose it to the risk of interrupted supply.
3.1.4 Lastly, the project will strengthen the fundamentals of the structure and the financial and economic
management parameters of ONEE (Water Branch).
1.14. Environmental and Social Impact
Environmental Impact
3.2.1 The project was classified under category 2 in accordance with the Bank’s integrated safeguards
system (ISS) and based on the identified impacts which range from low to average. Summaries of the
Environmental and Social Management Plan (ESMP) and the Abbreviated Resettlement Plan (ARP)
covering all project components will be published on the Bank’s website 30 days prior to submission of the
project to the Board of Directors. The main positive environmental impacts expected from the project are:
(i) reduced use of chemical reagents (active carbon and chlorine) thanks to water aeration and the use of
ozone, thus reducing the safety and health hazards for persons handling chlorine; (ii) controlled release of
12
reduced compounds (with a decrease in levels of iron, manganese, ammonia, etc.) and reduction of the
hydrogen sulphide content in the hypolimnion of the dam; (iii) reduction of eutrophication and
improvement of the ecological conditions of the dam; and (iv) better adaptation to the effects of climate
change (see section on climate change for details). The major negative environmental and social impacts
are: (i) land acquisition (see section on resettlement for details); (ii) risk of liquid waste pollution during
works on the various sites; and (iii) risk of ozone release into the air during the operational phase. Provision
has been made for appropriate mitigation measures. These are: (i) implementation of the ARP; (ii) the
inclusion of environmental clauses in the BDs for each works lot; (iii) the installation of automatic gas
leakage detectors and water quality measures. The cost of the ESMP (excluding expropriations) is estimated
at MAD 8 million and is included in the cost of works.
Forced Resettlement
3.2.2 A total of 158 plots will be affected by the project mainly in the communities of Ben Slimane,
Bouznika, Youssoufia and southern Safi. Most of these plots are farmlands located within the right-of-way
of the storage/treatment facilities and some pipes. It will entail land expropriation without movement of
people (no house will be affected). A total of 160 people (essentially men) will be affected. An ARP was
prepared defining all compensation procedures and measures for affected persons. A consultation and
communication plan for stakeholders will underpin implementation of the project in general and of the ARP
in particular. For certain components such as the Safi DWS, the compensation for landowners has already
been deposited at the CDG (Caisse de dépôt et de management) in accordance with the regulations in force.
The cost of the ARP (expropriations) is estimated at MAD 16 million and shall be borne by ONEE.
Compensations shall be carried out in accordance with the provisions of §5.2 of this report.
Climate Change
3.2.3 As regards climate, the project is classified in category 2, considering the overall vulnerability of
Morocco’s water sector. Since the project does not provide for the construction of water mobilization
structures, and considering that adaptation measures have already been taken vis-à-vis existing structures,
this risk is low for the project. Nevertheless, the project has included activities that will mitigate climate
change and boost climate resilience, in line with Morocco’s climate change policy objectives adopted in
March 2014. With regard to adaptation, the main innovation resides in the fact that artificial aeration will
make it possible to tap millions of litres of water which would otherwise be unusable due to the seasonal
decline in water quality. Indeed, at the end of spring and during periods of severe drought, a significant
amount of water becomes almost anoxic and sometimes covers almost the entire hypolimnion for a few
months. Artificial aeration helps to solve this problem and ensure steady supply regardless of climate
variability. Hence, the improvement of network performance will ensure better optimization and use of the
resource. Lastly, as regards mitigation, the improvement of system performance and the efficient operation
of the aeration and ozonation systems will yield a net positive energy balance, relative to the no-project
situation. The details are presented in Annex B8.
Monitoring of ESMP and ARP Implementation
3.2.4 For the environment component, the Environment Division (DE) of ONEE (Water Branch) will
collaborate with the works control bureau and the technical directorates concerned to monitor the
implementation of ESMP measures by works companies. The ARP will be monitored by the Directorate
for Legal and Lands Affairs (DAJ) in collaboration with the Regional Directorates concerned. The
Directorate for Cooperation and Communication (DCC) will be responsible for the implementation and
monitoring of the communication component. These institutional stakeholders possess the requisite
experience and expertise and have successfully implemented several DWS projects financed by the Bank
and other development partners. Lastly, the expert in the monitoring and evaluation of technical assistance
will contribute to monitoring and evaluation under the environmental and social component. The project
coordination team shall forward the ESMP implementation monitoring reports to the Bank every quarter.
13
Social Aspects
3.2.5 Given the rapid development of city suburbs (or new neighbourhoods in the big cities), regular
drinking water supply is not always ensured for the often disadvantaged communities. With the rise in land
prices, the spontaneous development of peripheral slums increases pressure on water resources. Hence, the
project will seek to strengthen and secure access to drinking water for these vulnerable communities in
urban areas or rural areas close to the city. Such secure access to drinking water will have a positive impact
on hygiene and especially health, especially contribution to a significant decrease in water-borne diseases
and a resulting increase in family savings. It will also help to reduce absenteeism in schools and the
workplace.
Job Creation
3.2.6 The project will create new jobs during the works phase (a few hundred) and operational phase, in
maintenance activities (dozens). It will also boost economic activities in the regions concerned. In the
industrial and tourism sectors, water supply will encourage the establishment of industrial and tourism units,
which will in turn boost local job creation in the provinces concerned (especially in Bouznika and Ben
Slimane where indirectly created jobs are estimated to be in the hundreds).
Gender Aspects
3.2.7 This project will have a direct impact on women, who represent 51% of the Moroccan population
and are the primary users of water for housework, gardening and small-scale stockbreeding, especially in
rural areas. In the majority of cases, it is mainly women and children, especially girls, who have to fetch
water. This water fetching duty and the shortage of facilities in rural areas often leads girls to drop out of
school. The literacy rate is nearly 80% for rural women in Morocco and is among the highest in the North
African sub-region. From the health perspective, regular and permanent water supply: (i) obviates the need
to store water which is a vector of diseases and thus help to reduce health expenditure which puts enormous
strain on family budgets; (ii) contribute to drastically reduce water-borne diseases, thus relieving women
of the burden of caring for sick children; (iii) helps to improve maternal and infant health; and (iv) saves
time and reduces the drudgery of fetching water for women and girls in rural and semi-urban areas, thus
creating time for other pursuits such as literacy and income-generating activities.
3.2.8 Secure drinking water supply and the installation of individual connections (ICs) in homes will
help create a change in activity profiles. Hence, division of labour becomes equitable in the household since
women no longer have to fetch water, although they still remain in charge of household chores. It also
reduces household chores for girls.
3.2.9 From the economic perspective, securing drinking water supply in semi-urban communities will
help to create opportunities for undertaking income-generating activities such as market gardening and
small-scale stockbreeding. This will help to increase the still low proportion (about 30%) of women
engaged in productive activities, and afford them greater financial autonomy thus improving their social
status.
3.2.10 The project includes gender-specific measures, especially the targeting of women as actors in
ensuring the rational use and saving of the resource, as well as introduction of the "gender module" in the
training of professionals who will conduct community awareness campaigns in the project areas. Moreover,
the project makes no provision for gender-based discrimination in its activities throughout its
implementation. The budget for implementing gender activities is estimated at MAD 4.5 million and is
covered by the ONEE counterpart contribution.
14
Sustainable Development Goal (SDG)
3.2.11 The project will significantly contribute to the achievement of Morocco’s SDG goals, especially
Goal 6 to "ensure access to water and sanitation for all and ensure the sustainable management of water
resources" and Goal 13 to "combat climate change and its impacts". The project will also contribute to the
achievement of some of the other SDGs relating to the elimination of poverty, the improvement of health
and education and the promotion of sustainable industrialization that encourages innovation.
3.2.12 By paying special attention to the needs of women, girls and vulnerable communities in terms of
drinking water access, the project will indirectly contribute to the achievement of other SDGs, such as Goal
5 to "achieve gender equality and empower all women and girls" and Goal 10 to "reduce inequality within
and among countries". It will improve the drinking water access rate in disadvantaged localities such as
semi-urban and rural areas (Appendix B8).
IV Implementation
1.15. Implementation Arrangements
Institutional Arrangements:
4.1.1 ONEE (Water Branch) is the project’s executing agency. The Technical and Engineering
Directorate (DTI), assisted by the Directorate for Asset Management (DPA), the Directorate for Universal
Access to Drinking Water (DEP) and the Centre Regional Directorate (DR3), will be responsible for
managing all technical aspects of the project, in close collaboration with the Directorate for Supplies and
Contracts (DAM) as regards the procurement of goods, works and services; the Directorate for Finance
(DFI) as regards the project’s accounting and financial management and general coordination with the
Bank; the Directorate for Sanitation and the Environment as regards monitoring measures that mitigate
project impact on the environment; the Directorate for Legal and Lands Affairs (DAJ) as regards land
expropriation; and the Directorate for Cooperation and Communication (DCC) for implementation of the
communication plan.
4.1.2 The DTI will ensure the technical management of the project and shall, to that end, appoint a
General Project Coordinator who will be supported by officials designated by the other directorates (DPA,
DEP and DR3) and assisted by an engineering consultant for works coordination, monitoring and
supervision within the context of technical support to project implementation. An organisational chart was
prepared for the Project Coordination Unit that defines the duties of the various units and persons tasked
with management of the project and the implementation of its various components (Annex B3). This chart
shows that the Project Coordination Unit has adequate key staff for project management in accordance with
Presidential Directive PD 02/2015.
Procurement Arrangements
4.1.3 Consultancy services for technical support as well as international competitive bidding (ICB) for
the design and construction of the artificial aeration and ozonation systems will be procured in accordance
with Bank rules and procedures (May 2008, revised July 2012), using the Bank’s standard bidding
documents (SBDs). Meanwhile, works worth less than UA 6 million as well as the supply and installation
of goods worth less than UA 500,000 shall be procured in accordance with the provisions of the letter of
agreement signed on 31 May 2013 between the Kingdom of Morocco and the Bank on the use of country
procedures. Hence, works related to the laying of pipes, civil engineering, electricity power lines,
rehabilitation of treatment plants, production and network structures, as well as the supply and installation
of equipment (pumping stations, metres, flow metres, searching for leaks) will be procured through national
competitive bidding (NCB) using standard BDs jointly prepared to that end by the Bank and the Kingdom
of Morocco.
15
4.1.4 ONEE (Water Branch), through the Directorate for Supplies and Contracts (DAM) and the
Purchase Services of the Regional Directorates, shall be responsible for the procurement of goods, works
and services under the project as detailed in Annex B5. During project preparation the procurement capacity
of ONEE (Water Branch) was evaluated. This evaluation revealed that ONEE (Water Branch) has the
resources and experience in this area, meaning that the risk is low. The resources, capacities, expertise and
experience of ONEE (Water Branch) are detailed in Technical Annex B5.
4.1.5 Pursuant to Presidential Directive PD02/2015 and to ensure the effective commencement of the
project after its approval, the Procurement Plan (PP) was developed by ONEE (Water Branch) (Annex B5).
Furthermore, the borrower has requested and obtained advance procurement action (APA) from the Bank
for the procurement of technical support (Component D) and some goods and works (Components A and
C) pursuant to the provisions of Article 1.9 of the Rules and Procedures.
Disbursement Arrangements
4.1.6 AfDB loan resources shall be disbursed in accordance with the applicable provisions of the Bank's
disbursement handbook. ONEE (Water Branch) is familiar with the Bank’s disbursement rules. In light of
the activities and the large number of contracts involved, disbursements shall be made following the special
account and direct payment methods. The reimbursement method may be used if necessary and a single
method shall be applied to each contract. A disbursement letter shall be forwarded to ONEE (Water Branch)
upon approval of the project by the Bank.
Financial Management
4.1.7 ONEE (Water Branch) shall report to the Bank on the project’s implementation and financial
management. Its financial management, as the executing agency, was evaluated in accordance with Bank
guidelines, taking into account the assessment of Morocco's fiduciary risk, the financial management
system used and the experience acquired by ONEE’s financial directorate (DFI) in the management of
similar ongoing projects (Rabat-Casablanca DWS project and the Marrakesh Water Project). This approach
led to the conclusion that the initial overall financial management risk is deemed moderate by the Bank.
However, ONEE (Water Branch) should continue the regular and efficient use of the existing financial
management elements reiterated in the action plan presented in Annex B4.
4.1.8 Financial Management Arrangements: ONEE (Water Branch) shall ensure the financial
management of the project through its Directorate for Finance (DFI), which is composed of six (6)
divisions, 4 (four) of which are directly or indirectly involved in the project, namely: the legal accounting
and taxation division, the financing division, the management accounting division and the cash-flow
division. Hence, the financial management of the project will be fully integrated into that of the executing
agency which operates through the following formalized mechanisms: (i) budget planning of investment
activities carried out by the technical directorates involved; (ii) monitoring of project budget execution by
the technical directorates involved and the management control division; (iii) an internal control process
which includes a formal expenditure control channel; (iv) the production of quarterly reports with detailed
project status statements; (vi) an information system composed of several applications integrated into SAP
implemented since 2007 (SAP/FI, SAP CO) and non-accounting statements which jointly generate interim
financial statements (statements on commitments and payments per contract) and annual financial
statements of the project (TER...); and (vii) external audit of ONEE and the funds granted by the AfDB and
ONEE’s counterpart contribution by an independent audit firm. These mechanisms, which are outlined and
formalized in ONEE’s procedures manual, guarantee transparency, traceability, asset protection and
reliable financial information on the funds invested in project implementation. Nevertheless, project audit
reports are not always submitted to the Bank on time. Similarly, the problem of non-accounting statements
remains, despite the reliability of financial information.
Furthermore, the budgetary risk and the existing control environment are monitored by the Ministry of the
16
Economy and Finance, the Court of Auditors and the ONEE Board of Directors which brings together the
representatives of various ministries. Thus, considering the level of fiduciary risk, the project will receive
a single supervision mission per year to review its financial management.
Audit Arrangements
4.1.9 The financial statements of the project prepared by the finance division will be audited each year
by an external and independent audit firm, generally recruited for a period of three years. The audit shall
be conducted in accordance with IFAC’s International Standards on Auditing (ISA) and the Bank’s terms
of reference (ToRs) agreed upon with to ONEE (Water Branch). The audit report of the project, along with
Management's letter on internal control, should be forwarded to the Bank not later than 6 (six) months after
closure of the fiscal year concerned. Moreover, on account of its statute of establishment, ONEE shall be
subject to several financial controls by the State (State comptroller, the Ministry of the Economy and
Finance) and possible control by the General Inspectorate of Finance (IGF) and the Court of Auditors.
1.16. Monitoring
The physical implementation of the project is expected to cover a period of 48 months, from 2016 to 2020.
This schedule is deemed reasonable, given the nature of the works and the experience gained by ONEE
(Water Branch) in the execution of similar works.
4.2.2 ONEE (Water Branch), which is the executing agency, shall have the primary responsibility for
monitoring project implementation and shall prepare quarterly project status reports covering all aspects of
implementation, in the format recommended by the Bank. These reports shall essentially evaluate project
status; expenditure; commitments and disbursements by component, by expenditure category and by
financing source; the main issues; and recommended solutions. After the implementation period and during
the operational phase, ONEE (Water Branch) has adequate structures to manage and monitor project
outcomes. It will establish a database, references and statistics for monitoring and evaluation of the various
performance indicators according to its standard formats.
The Bank will monitor project implementation through its supervision missions, progress reports and the
financial statements of ONEE (Water Branch). The assistance of the Bank’s Field Office in Morocco
(MAFO) will strengthen the management and monitoring of project implementation, especially in the areas
of technical management, procurements, disbursements and financial management. At the end of the
project, ONEE (Water Branch) will prepare a project completion report that will serve as the basis for a
more comprehensive and joint report of ONEE and the Bank, on the performance of the project and of
various stakeholders.
4.2.4 This is a project financed in parallel by the Bank, ONEE (Water Branch), IBRD and EBRD.
Consultation with other donors on monitoring of the components not financed by the Bank will take place
under the coordination of ONEE (Water Branch) teams from the various directorates involved in the project.
4.2.5 The project implementation schedule is presented at the beginning of the report. Project activities
are scheduled to be completed in September 2020. The planned project implementation schedule is summed
up as follows:
17
Duration Stages Monitoring Activities/Feedback Loop
2015 - 2016 Technical studies Validation of studies by ONEE (Water Branch)
2rd quarter of 2016 Consultation of the IC and
procurement of certain
goods and works
Launch of consultations and procurement of goods
and works through APA
May 2016 Project approval AfDB Board of Directors
2nd quarter 2016 - 2nd
quarter 2017 (*)
Launch of BDs for goods
and works
Preparation by ONEE (Water Branch) and formal
approval by the Bank
2016 - 2017 Evaluation of bids Preparation by ONEE (Water Branch) and formal
approval by the Bank
2016 - 2017 Award of contracts Preparation by ONEE (Water Branch) and formal
approval by the Bank
2017 - 2020 Execution of works Execution by contractors and acceptance by ONEE
(Water Branch)
2016 - 2020 Monitoring of works Execution by IC and acceptance by ONEE (Water
Branch)
December 2020 Completion report Joint preparation by the Bank and ONEE (Water
Branch) (*) Some BDs relating to the activities of Component C (outlined in the annual programme) will be launched in 2018 and 2019.
1.17. Governance
4.3.1 ONEE (Water Branch) constantly improves on its management, organisational and monitoring
procedures. The current organisation chart establishes the principle of effective decentralization for the
benefit of the regions, which enjoy great autonomy in the design, implementation, monitoring and operation
of projects. Indeed, the regions carry out several specific functions such as studies, proposal of new projects,
development and launching of competitive bidding, partial human resources management, conduct of
communication campaigns, preparation of periodic reports and close commercial management, thus
ensuring greater transparency in the accomplishment of public service missions.
4.3.2 Governance risks are low, given the increasingly favourable evaluation of the effectiveness and
reliability of control, organisational as well as internal and external audit systems set up by ONEE (Water
Branch). For the above reason, it has benefitted from support control, rather than ex-ante control exercised
by the State; this is a favour routinely extended to entities that have confirmed their performance in internal
control, budget execution and effective and optimal resources management. Furthermore, to strengthen the
control framework, ONEE (Water Branch) pursues a risk management policy that is based on the mapping
of preventive and curative risks, monitored by the various departments and bodies of ONEE.
1.18. Sustainability
4.4.1 The sustainability of these future investments depends essentially on the capacity of ONEE (Water
Branch) to manage the project and to monitor, maintain and operate facilities optimally and continuously.
ONEE (Water Branch) has executed several projects to the Bank’s satisfaction. Its performance has been
proven and strengthened over the years thanks to an enabling environment and a sufficient number of
competent technical staff at the central and regional levels. The various components of the project disburse
sufficient financial resources to cover recurrent expenditure, repair and maintenance of the various
structures constructed. ONEE (Water Branch) is characterized by a constantly balanced financial situation
and guaranteed autonomy as described in the retrospective analysis and financial projections (Annex B7).
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4.4.2 Moreover, the reforms made in the DWS sector such as the merger with the Electricity Branch and
the establishment of a common programme-contract with the State augurs well for the steady and balanced
development of the sector. A Monitoring and Evaluation Committee chaired by MEF and made up of
representatives of signatory Ministries will monitor the commitments of the programme contract. In
addition, an independent firm will establish and present the six-monthly reports to the said Committee.
4.4.3 The project's sustainability is also ensured through reforms and programmes initiated by the
Government of Morocco mainly through the Water Sector Adjustment Programme (SAP-EAU) co-
financed by the Bank, the World Bank and the European Union; the National Irrigation Water Saving
Programme (PNEEI) and the National Sanitation Programme (PNA). These reforms, which have already
been implemented for the most part, will lead to integrated water resource management, erosion control in
catchment areas, rehabilitation of the DWS distribution and irrigation networks to reduce losses, the
promotion of new irrigation techniques to save water, the development of adequate sanitation services,
reduction of the pollution rate.
Billing System
4.4.4 Ultimately, project sustainability is based on a water billing system that seeks to reconcile the
interests of consumers and various stakeholders so as to ensure continuity of service. The rates are based
on a national equalization system to ensure social equity. Progressive pricing makes things easier for low-
income communities and encourages large consumers to use drinking water economically.
4.4.5 The billing of drinking water and sanitation recently underwent a major development through the
law published in Official Gazette No. 6275 of 22 July 2014, which became effective on 21 August 2014.
The pricing structure, presented in Annex B7, is determined based on the distinction between production
and distribution and a differentiation between towns, excluding the cities managed by ONEE (Water
Branch) which are subject to a national billing system focused on usage categories (domestic, industrial,
tourism). Changes made in the pricing structure relate to restructuring of the consumption bands (moving
from 4 to 5 bands) and consideration of the social character of the first band. In addition to the pricing
structure, two types of surtaxes have been incorporated in order to contribute to equity between users in
large cities and those in smaller localities and rural areas (to finance the supplementary operational costs in
smaller towns and part of the investments in rural DWS). All these measures have increased the
affordability of water for the poorest segments of Morocco’s population.
1.19. Risk Management
4.5.1 The potential project risks concern: (i) the non-preservation and sustained suspension of water
supply, as well as the absence of integrated and optimal water resource management; (ii) the time limit for
acquiring the project lands; (iii) the time limit for procuring goods, works and services; and (iv) the limited
experience of ONEE (Water Branch) in the field of artificial aeration and ozonation (specific risk under
Component B).
4.5.2 The preservation and sustainable availability of water resources as well as integrated and optimal
water resource management are some of the main goals of the SAP-EAU measures jointly funded by the
Bank, the European Union and the World Bank. These measures establish the quality standards for surface
water and the water used for DWS. These standards set the threshold values for water discharged into the
sanitation systems and into the natural environment as well as the values for liquid effluents from various
industrial and artisanal sectors. Furthermore, implementation of the action plans of the national water
strategy and the programme-contract (2014-2017) between ONEE and the State help to ensure the
integrated management of water resources.
4.5.3 The sometimes significant delays in procuring the land needed to lay the pipes and build the
facilities, could constitute a risk to the timely implementation of the project. However, preliminary studies
and the environmental impact study have shown that the lands to be acquired are: (i) State property (public
works, municipalities...); or (ii) of low value (agricultural land located far from settlement areas). The
19
piping pathways and sites for the various facilities are deliberately located far from all existing settlement
areas such that no constructed property will be affected. Furthermore, taking account of the lessons learnt
from projects currently being implemented with ONEE (Water Branch), it was agreed that only operations
whose parcelling plans have been finalized, whose land has been identified for expropriation and whose
expropriation procedure has been launched, would be retained.
4.5.4 The sometimes significant delays in procuring goods, works and services, could constitute a risk
to the timely execution of the project. However, based on the lessons learnt from ongoing projects, this risk
will be mitigated by ensuring that the various stages of the procurement process and documents to be used
(standard BDs...) are accurately defined in the project appraisal report and the Procurement Plan (PP).
4.5.5 The limited experience of ONEE (Water Branch) in the field of artificial aeration and ozonation
will be offset by strengthening the technical support team with artificial aeration and ozonation experts.
1.20. Knowledge Development
4.6.1 The introduction of innovative techniques such as ozonation, improvement of the output of various
networks and the selection of more economical variants reflect the effort of ONEE (Water Branch) to build
on its research and development achievements and develop its skills in project design and implementation.
4.6.2 Knowledge development is strengthened by the involvement of several departments at the central
and regional levels in the project design process, the selection of technical alternatives and the optimization
and rational operation of investments. The policy practised by ONEE (Water Branch) of outsourcing certain
tasks creates opportunities for young entrepreneurs to be trained, to acquire knowledge and to put it into
practice through the creation of their own businesses, thereby strengthening the emergence of small private
economic structures in the interest of regional development, while enabling ONEE (Water Branch) to save
on repair and maintenance costs.
4.6.3 ONEE (Water Branch) has a website that facilitates the sharing of experiences inside and outside
the country and a training centre that plays a role in disseminating knowledge and research, as recognized
by WHO. ONEE (Water Branch) is a reference in Africa's DWSS sector through its close links with
universities, research centres and counterpart entities (water operators and others). ONEE (Water Branch)
provides training an assistance operates in 15 African countries. Through collaboration and monitoring of
this project, the various units of the Bank will not fail to share expertise and lessons on ozonation technology
and to factor them into future operations in other African countries.
4.6.4 Technical support will contribute to the transfer of know-how and knowledge in the area of project
monitoring and implementation. It will be underpinned by specific expertise in the fields of the
environment, monitoring and evaluation and new technologies. Periodic project reports will be published
on the website of ONEE (Water Branch).
V Legal Framework
1.21. Legal Instrument
An AfDB loan agreement will be signed between the Bank and ONEE, complete with a guarantee from the
Kingdom of Morocco.
1.22. Conditions Associated with the Bank’s Intervention
The AfDB loan is granted subject to the following conditions:
20
Conditions Precedent to Grant Effectiveness
The AfDB Loan Agreement will become effective on the date of its signature by the Borrower and the
Bank. The effectiveness of the guarantee agreement is subject to the fulfilment by the Guarantor, to the
satisfaction of the Bank, of the conditions under Section 12.01 of the General Conditions Applicable to
Bank Loan and Guarantee Agreements (sovereign entities).
Conditions Precedent to First Disbursement
In addition to the effectiveness of the AfDB loan agreement and guarantee agreement, the first disbursement
of AfDB loan resources is subject to fulfilment by the Borrower, to the satisfaction of the Bank, of the following
conditions:
(i) Fulfil the conditions under Section 12.02 paragraph (a) sub-paragraphs (i) and (ii) of the
General Conditions
(ii) Provide the Bank with proof of the appointment of the Project Coordinator whose experience
and professional qualifications have been deemed acceptable beforehand by the Bank; and
(iii) Provide to the Bank proof of the opening of a Special Account in a bank acceptable to the
AfDB to receive AfDB loan resources.
Other Conditions
The Borrower shall, to the satisfaction of the Bank:
(i) Provide: as the works progress, and, in any event, before any works begin in an area concerned:
(a) evidence of compensation for project affected persons in this area, in accordance with the
Abbreviated Resettlement Plan (ARP), the Environmental and Social Management Plan
(ESMP) and the Bank’s relevant rules and procedures, in particular, its Involuntary
Resettlement Policy, its Integrated Safeguards System; and/or if, for reasons beyond the
Borrower’s control, compensation is not possible, either in whole or in part (b) evidence of
deposit of such compensation funds in a dedicated account at the Caisse de Dépôts et de Gestion
or any other authorized financial institution acceptable to the Bank;
(ii) Forward to the Bank, at the end of each quarter, a quarterly environmental and social monitoring
report, resulting from implementation of the ESMP and ARP including as appropriate, the
inadequacies and corrective actions taken or to be taken. This report could be part of the
quarterly project implementation report.
Commitments
The Borrower undertakes, to the satisfaction of the Bank, to:
(i) Implement the project, the ARP and the ESMP and have them implemented by its contractors
in accordance with: (a) the Bank's rules and procedures; (b) national legislation; and (c) the
recommendations, requirements and procedures contained in the ESMP and ARP;
(ii) Not start any works in an area concerned without the project affected persons in this area having
been fully compensated; and/or without the money allocated to such compensation having been
deposited in a dedicated account with the Caisse de Dépôts et de Gestion or any other authorized
financial institution acceptable to the Bank;
(iii) Provide to the Bank any documents reasonably needed for monitoring implementation of the
project.
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1.23. Compliance with Bank Policies
The project complies with all applicable policies, in particular Bank policies, guidelines and procedures on
environmental and social management. It is a category 2 project. The ESMP summary was prepared and
published on the Bank’s website and the cost of implementing the mitigation measures has been
incorporated into the project costs.
VI Recommendation
It is recommended that an ADB loan, not exceeding a total amount of EUR 88.85 million, be awarded to
ONEE complete with the guarantee by the Kingdom of Morocco to finance the Drinking Water Quality and
Service Improvement Project, in accordance with the terms and conditions set forth in this report.
I
Annex I Development Indicators of Morocco
Year Morocco Africa
Develo-
ping
Countries
Develo-
ped
Countries
Basic Indicators
Area ( '000 Km²) 2014 - 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.
avril 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
1000
1500
2000
2500
3000
3500
20
00
20
05
20
07
20
08
20
09
20
10
20
11
20
12
20
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 the AfDB's Active Portfolio in Morocco (End-February 2016)
III
Annex III Major Related Projects Financed by the Bank and Other Development Partners of
Morocco
1. The list of the main projects funded by the Bank and other development partners in the DWSS sector
is presented in Appendix-A.
2. The table presenting the various operations of major donors in Morocco’s DWSS sector as of
December 2015, is presented below (in EUR million).
Major water sector
donors
AfDB World
Bank
JICA KFW AFD EU IsDB EIB Belgian
Cooperation
GIZ Swiss
Cooperation
Total
Total (in EUR million) 589.33 530.95 481.00 422.62 384.50 270.15 270.12 70.00 45.60 21.78 4.30 3,090.35
% 19.07 17.18 15.56 13.68 12.44 8.74 8.74 2.27 1.48 0.70 0.14 100.00
0,00
100,00
200,00
300,00
400,00
500,00
600,00
700,00
BAD BanqueMondiale
JICA KFW AFD UE BID BEI CoopérationBelge
GIZ CoopérationSuisse
Intervention des principaux Bailleurs de Fonds & des Partenaires Techniques au développement dans le secteur de l'eau au Maroc à fin décembre 2015 (millions
d’EUR).