world bank document · 1987: us $1.00 = dh 8.27 prin cipal abbreviations and acronyms used fec -...

Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 8129

PROJECT COMPLETION REPORT

MOROCCO

SECOND WATER SUPPLY PROJECT(LOAN 1724-MOR)

OCTOBER 16, 1989

Infrastructure Operations DivisionCountry Department IIEurope, Middle East and North Africa Regional Office

This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

CURRENCY EQUIVALENTS

Currency Unit: Moroccan Dirham (DH) = 100 centimes

1978: US $1.00 = DH 3.821987: US $1.00 = DH 8.27

PRIN CIPAL ABBREVIATIONS AND ACRONYMS USED

FEC - Fonds d'Equipement CommunalGOM - Government of MoroccoKfW - Kreditanstalt fur WiederaufbauONEP - Office National de l'Eau PotableRAD - Regie Autonome Intercommunale de Distribution d'Eau

et d'Electricite de CasablancaRAK - Regie Autonome Intercommunale de Distribution d'Eau

et d'Electricite de KenitraRED - Regie Autonome Intercommunale de Distribution d'Eau

et d'Electricite de Rabat-Sale

FISCAL YEAR

January 1 - December 31

tVt ~VWOL - °; UK ONLYWftowyo- DC @X.)3

a.d bw4uue

October 16, 1989

HZMORANDUM TO THE MECUTIV DIRECTORS AND THE PRESIDENT

SUBJECT: Project Completion Report on MoroccoSecond Water Supply Project (Loan 1724-MOR)

Attached, for information, is a copy of a report entitled "ProjectCompletion Report on Morocco - Second Water Supply Project (Loan 1724-MOR)'prepared by the Europe, Middle East and North Africa Regional Office with PartII of the report contributed by the Borrower. No audit of this project hasbeen made by the Operations Evaluation Department.

Attachment

I 1k dacmm Ongh a maulag EbWArbnm ed up be vnd by mucuuml a* in e pe-Ifumas Ion"e~Idb. OM teeNM" mu me be .bm w Wo a" auteu n.

FOR OMCIAL USE ONLY

KDNGDOM OF MOROCCO


SECOND WATER SUPPLY PROJECT (LOAN 1724-MOR)

TABLE OF CONTENTS

Page No.

Preface ............................ *.*............* ..* .... * i

Evaluation Sunmmary ............... .. . .. .................. ii

PART I. 1. Project Identity . ........ ............ 12. Background .......................... .............. . 13. Project Objectives and Description ..................... 14. Project Design and Organization . . 25. Project Implementation . .. .. ...... . ....... 36. Project Results ............... ... .............. ... 37. Project Sustainability .......... ..................... 78. Bank Performance .... .... ........... ....... ........ 7

9. Borrower Performance . .... ........... ................. . 810. Project Relationships .............. ......... . .0. 9

11. Consultants, Cor.tractors and Suppliers ...pli r.........s 912. Project Documentation and Data ....................... 10

PART II. 1. Borrower's Comments ........... ............ . . 11

PART III

1. Related Bank Loans ................... . ....... 122. Project Time Table . .......................... . 133. Loan Disbursements . ...... .... .......... . *. 15

4. Financial Statements of ONEP ...............* ........ 165. Project Costs .... ................ **so .............. 21

6. Status of Covenants ............ . O.. ... ............. . 22

7. Monitoring Indicators of ONEP ............. ooP ........ 248. Uses of Bank Resources .......................... ... 259. Studies ............................ 26

MAPS

IBRD 14088IBRD 14089IBRD 3720R3

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

KINGDOM OF MOROCCO



Preface

This Project Completion Report describes the preparation, appraisal,and implementation of the Second Water Supply Project in Morocco, for whichLoan 1724-MOR in the amount of US$49 million was signed on July 2, 1979. Theproject became effective on February 4, 1980 and was to have closed onJune 30, 1984. The original closing date was extended four times: toJune 30, 1985, June 30, 1986, June 30, l9d7, and December 31, 1987. The loanwas fully disbursed.

This report was prepared by the Europe, Middle East and North AfricaCountry Department II, Infrastructure Operations Division. It was based oninformation derived from the files of the EMENA Information Center, as well assupervision and completion missions. s

- ii -

KINGDOM OF MOROCCO



Evaluation SummarY

Objectives

The primary objective was to improve access to safe water suppliesfor the rapidly growing population of the mid-Atlantic coastal region andGreater Agadir by: (a) meeting increased water demand; (b) helping financethe installation of house connections for low-income customers; and(c) improving the operational efficiency of the Office National de l'EauPotable (ONEP).

Implementation Experience

The project was completed three and one-half years behindschedule. Much of the delay was due to the modification of water productionand transmission facilities to increase their capacity in response togreater demand than estimated at appraisal. Cumbersome bidding and paymentprocedures, late subsidiary agreements concerning house connections, and thedeteriorating fiscal situation in Morocco also contributed to implementationdelays. Because of an inter-ministerial disagreement, an important watersupply sector study was not carried out.

Results

The least-cost investments enabled ONEP to meet increased demand inthe project areas, as no water shortages have occurred since the projectbegan. Under the Project Agreement, ONEP was required to initiate a studyfor improving its operations, implement a new accounting system, andinventory its fixed assets. In 1981, ONEP created a task force for thestudy, which led ultimately to substantial gains in productivity. In1982-83, ONEP implemented a new accounting system, which included a revisedcost accounting system. Although external audits of ONEP's accounts showedmarked improvement, auditors continued to point out serious deficiencies inareas such as the inventory of fixed assets. Completion of the inventory isexpected in 1989.

ONEP and the local utility authorities have the capacity tomaintain and expand the facilities installed under the project. As long asthere continue to be adequate financial resources available, there should beno difficulty in maintaining an acceptable level of benefits throughout theeconomic life of those facilities.

- I _


MOROCCO


PART I

1. Project Identity

Project Name: Second Water Supply ProjectLoan No.: 1724-MORRVP Unit: EMENACountry: MoroccoSector: Water Supply and SewerageSub-sector: Water Supply

2. Ba~g

2.01 Faced with severe budgetary constraints and high capital costs ofdevelopment of the water supply subsector, the Government of Morocco (GOPI)decided in its sector development plan (1978-1980) to give first priority tothe improvement of water supply in urban areas, where limited investmentscould benefit a large proportion of population. In the sector developmentplans high priority had also been assigned to improve piped water service torural agglomerated villages. The Bank lending policy in the water supplysector was to assist GOM in developing the sector by supporting its investmentprogram for water supply and to provide technical assistance and training forinstitution building. In accordance with the socio-economic objectives ofGOM, the project was designed to: (i) develop productive water supplyfacilities and water resources; and (ii) reduce the effects of urban povertyby providing water to the urban poor.

3. Proiect Objectives and DescriDtion

3.01 The primary objective of the project was to improve access to safewater supplies of the rapidly growing population of the Mid-Atlantic Coast(Casablanca, Rabat-Sale, Kenitra) and the Greater Agadir area by:

(a) meeting increased water demand in these regions;

(b) establishing a revolving fund within each of the Regies ofCasablanca, Rabat-Sale and Kenitra to help finance theinstallation of house connections for low-income customers; and

(c) assisting the Office National de l'Eau Potable (ONEP) to becomea more efficient institution.

The project consisted of four main components:

(a) expansion of bulk water production and transmission facilitiesalong the Mid-Atlantic Coast;

- 2 -

(b) expansion of bulk water production and transmission facilitiesfor the Greater Agadir area;

(c) funds for credit facilities to finance house connections of thelow-income population in the Mid-Atlantic Coast; and

(d) studies.

4. Projeet Design and Organisation

4.01 Since the first appearance in project files, project definition tookabout six years and during that period the project composition was modifiedseveral times. Project preparation started in 1976, upon request of GOM whena first identification Bank mission took place. It took another two yearsbefore a project brief was formulated in April 1978 proposing essentially thesame components of Loan 1724-MOR and two additional components in Agadir onwater distribution and sewerage. Appraisal took place in October 1978, whenthe additional components in Agadir were deleted by absence of institutionalcapacity for maintenance and operation. The project was in line with GOM mainobjectives for the water supply sector of mobilizing water resources tofulfill increasing water demand in urban centers and increasing service levelsfor the urban poor. The beneficiaries, the Office National de l'Fau Potable(ONEP), responsible for the implementation of the bulk water supplycomponents, and the Regies of Casablanca, Rabat-Sale and Kenitra responsiblefor the house connection components participated fully in project preparationand implementation. The timing of the project was appropriate becauseincreasing water demand was expected to exceed the capacity of existingproduction facilities in the early eighties.

4.02 In spite of its long preparation time, the project was appraised onthe basis of fearibility studies; detailed engineering studies were executedduring project implementation resulting in minor revisions of the project.The project was innovative in the promotion of house connections to the waterdistribution systems by the creation of credit facilities to low-incomefamilies. Although attention was paid to the parallel need to improve accessto water supply of the urban poor by the construction of additional publictaps, this proved unfeasible as municipalities could not afford to pay thewater bills on public tap consumption, which was already taxing the financialsituation cf the regies.

4.03 One important aspect of project design and organization resulted in acomplete failure: contrary to appraisal expectations, no action was taken bythe secretariat of economic affairs in the Prime Minister's office to executea water supply sector study to: (i) review the sector's organization,(ii) improve the sector's investment decision process; and (iii) update thecountry-wide tariff study. This lack of action was caused by disagreementbetween the several sector Ministries involved. Nonetheless, the Bank hasbeen following up these issues. As a result, the GOM decided to create theConseil Superieur de l'Eau, which effectiveness in coordinating sectoractivities is being actively monitored under Loan 2825-MOR. Regarding thesector investment decision process, there has been only minor progress.However, it is expected that our second structural adjustment operation inMorocco will give priority to this aspect as one of its essential componentsis the review of public expenditures including the most important PEs. Of theother studies carried out by consultants under ONEP's and the Hydraulic

Department's responsibilities, only the water resources masterplan studies inthe Agadir area encountered considerable delays caused by the: (i) time neededfor data collection; (ii) complexity of the studies; (iii) participation of amultitude of government services in the review of study reports; and,(iv) absence of a permanent team leader in the consultants team.

5. Project Implementation

5.01 According to the project implementation schedule at appraisal theproject was expected to be completed by June 1983. Although the delays onindividual components varied, the overall project was finally completed byDecember 31, 1987, with a delay of three and half years. Reflecting a toooptimistic view on the increase of water demand in the early implementationyears, which exceeded the forecast, much of the delay was due to themodification of the proposed project facilities to increase capacity of theMid Atlantic Coast bulk water supply, other delays were caused by lengthy anddifficult bidding and payment procedures.

5.02 Bidding procedures and contract approval took often more than ninemonths because of delays in approval of contracts by the financial controllersof the MOF. Cumbersome administrative procedures in MOF also contributed toexcessive delays in payments of consultants, contractors and reimbursement ofthe Regies for their house connection program expenses.

5.03 The subsidiary agreements between GOM and the Regies for the houseconnection components were concluded in March 1980, or about nine months afterloan signing. This delay and unexpected technical, administrative andfinancial constraints hampered project implementation as foreseen atappraisal. The appraisal report identified difficulties in achievement of thehouse connection program based on uncertainty regarding willingness to pay offuture customers and cooperation of the water distribution Regies. However,no attention was paid to the above-mentioned constraints comprising:xi) absence of roads in residential areas to be served with water supply;(ii) unforeseen modification of urban renewal projects; and (iii) excessivedelays in disbursement procedures by the Ministry of Finance. Theinflexibility of eligibility criteria for house connection credits, which werecovenanted in the loan agreement and which were changed only once duringproject execution was justified as a means of preventing abuse by customerswho could afford the cost of connections. Of the above constraints only thefirst could have been identified ann calibrated during project preparationthrough prior assessment of the existing physical conditions. Thedeteriorating fiscal situation of GOM during project execution contributed toexcessive delays in disbursements. To speed up payment procedures and torelieve the GOM's fiscal situation the Bank insisted on the adoption of directpayment procedures, which were applied for ONEP and the Regies since 1983, andin 1984 the Bank agreed to increase disbursements through a Special ActionProgram (SAP).

6. Project Results

6.01 During project implementation no changes were made in the projectobjectives. The least-cost investments in the Mid Atlantic Coast and theGreater Agadir bulk water supply facilities did timely meet the increasedwater demand and no water shortages occurred before and after completion.Actual project costs amounted to DH 1,063.77 million as compared with

-4-

appraisal estimates of DH 697.22 million, adjusted to reflect the projectmodifications mentioned in para 5.01. ' The cost overruns were met byGovernment contributions to ONEP and ONEP's own funds. It is estimated thatof the total net increase of DH 366.55 million about 20 percent is the resultof higher prices due to the fact that part of the project was completed afterthe original completion date. T.te repeated devaluations of the DH contributedto about 50 percent of total net increase. The remainder of the cost overrunor about 30 percent is due to project modifications.

6.02 Under the Project Agreement, ONEP was to inventory its fixed assets,implement a new accounting system, initiate a study for improving itsoperational procedures and send to the Bank audited accounts. By June 30,1980, the deadline for starting its fixed assets inveutory, ONEP had alreadycompleted 20% of the work; by end 1987 it had completed 80Z and the work isexpected to be completed in 1989. The 10-year period taken to complete theinventory is long and it may ;.ave been shortened with the assistance ofconsultants which the loan should have financed. ONEP successfullyimplemented a new accounting system in 1982-83, including a revised costaccounting system. Although audited reports were not always received in timeby the Bank, there has been a clear improvement in the timely preparation ofannual accounts. However, external auditors have continued to refuse to givean opinion on ONEP's accounts. This refusal is predicated on the lack of:(i) a completed inventory of fixed assets; (ii) clarity in the presentation ofthe results that may eventually be achieved by the cancellation of arrearswhich is taking place at the country level; (iii) confirmation from theGovernment on its loa-s to ONEP; and (iv) compliance with internationallyaccepted procedures for recording losses on the valuation of foreign loans.Although some of the teasons given by the auditors for withholding theiropinion are beyond the control of ONEP and are but a reflection of thegenerally unsatisfactory state of affairs in the Moroccan finances and itsadministration, there are some improvements that ONEP should implement. Banksupervision missions have requested ONEP to carry out these improvementsduring 1989, particularly the clarification of receivables and payables andthe establishment of reserves for uncollectables, where needed.

6.03 ONEP financial statements for the period 1975-87 are given inAnnex 4. They compare actual with forecast data over the projectimplementation period 1979-1987. The comparison shows that average sale ofwater was 162 lower than forecast. Even though water charges were lower thanexpected until 1985, they were higher thereafter, so that, for the period theyresulted in revenues from sales about 112 lower than forecast at appraisal.The higher water charges were implemented since 1986 as a reaction to ONEP'3deteriorating financial situation, and also as a result of pressure exertedover Government by ONEP's management and the Bank, who used as a leverage toolthe appraisal of a then upcoming loan (2825-MOR). ONEP's total workingexpenses were in line with (1% higher than) appraisal estimates; althoughsalaries were 10% higher and energy 571 higher than appraisal estimates,chemicals and materials were 502 lower despite steep increases in the unitprice of chemicals.

t' Use of US$ equivalent cost figures is not meaningful given the successivedevaluations of the Dirham and changes in the exchange rate of the US$with respect to other strong currencies.

6.04 Already by March 1981, ONEP had created a task force to study andimprove its operations. The task force was successful and its effortsrewarded by substantial gains in ONEP's operational performance. While wagesand energy prices were outside ONEP's control, ONEP was able to improve itsperformance significantly by constraining staffing so as to achieve a lowgrowth rate of 42 over the period 1979-87; sales by employee grew from 68thousand m3 per employee in 1979 to 114 thousand m3 per employee by 1987; by1987, ONEP staff was about 102 below appraisal estimates. Lower use ofchemicals and materials was impressive. Lower energy costs were also achievedby changing pumping hours and modifying delivery contracts with the NationalElectricity Company.

6.05 A financial covenant required ONEP to earn an annual rate of returnon its average net fixed assets of r.ot less than 21 in 1980, 5% in 1981, and71 in 1982 and thereafter. ONEP did not comply in 1980-81 when rates werenegative. The Bank, realizing that the target was excessively high changedthe covenant under the follow-up Loan 2006-MOR to the maintenance of a workingratio not to exceed 0.66 starting in 1982, which demanded lower revenues thanthe preceding covenant. ONEP was still unable to comply in 1982-83 but itcomplied in 1984 after steep tariff increases of 431 for bulk and 58% forretail supplies; annual tariff increases averaging 132 implemented in 1985-87allowed ONEP to continue to comply with the covenant. The same pattern isobserved for the compliance with the debt service coverage ratio covenant,where the Bank reduced the original 1.5 times target to 1.3 times; ONEP wasunable to compiy with the covenant in 1980-83 but has complied thereafter.

6.06 The following is a summary of ONEP's flow of funds over the period1979-87:

ONEP's Summary Flow of Funds, 1979-87

Actual ForecastMillion DR % Million DU %

Gross internal cash generation 662 21 1,156 35Less: debt service 474 i5 545 16

increase (dec.) in working capital 10 - (115) (3)Net internal cash generation 178 6 726 22Borrowings 772 24 913 28Government contributions 2,220 70 1,532 46^ustomer and other contributions 219 7 149 4Decrease (increase) in cash balances (214) (7) 11 -

In-estments 3,175 100 3,331 100

6.07 The above table shows that ONEP's investments over the period were inline with those estimated at appraisal. However, while investments over1979-85 were substantially higher (351) than appraisal estimates, they weremuch lower (561) in 1986-87. The 1986-87 reduction of investments was due toa GOM imposed ceiling on investments as GOM attempted to rein on its budgetdeficit. Faced with a substantially (75%) lower amount of funds internallygenerated, ONEP had to resort to increased (451) transfers from GOM.

- 6 -

Borrowings were about 151 lower than estimated and financed a lower thanexpected proportion of investments. In the face of large increases in thenominal value of debt, brought about by substantial devaluations of thedirham, the reduced borrowings and increased GOM funds had the salutary effectof producing debt/equity ratios practically equal to those expected atappraisal (1987: 26/74 actual versus 24/76 estimated). The DO 10 millionincrease in working capital hides the enormous amounts of both current assetsand current liabilities, which further increased from 204% and 1001,respectively, of total revenues in 1979 to 213% and 151% in 1987. These largeamounts of current assets and liabilities are the result of the long-standingproblem of arrears in Morocco. Under the Loan Agreement (Section 4.05), GOMcommitted itself to paying its water bills within 120 days. TheInterministerial Commission appointed by GOM to solve the arrears problem wasinitially able to reduce arrears but after a while they reoccurred. The PERL(Loan 2820-MOR) aimed, among others, to solve the existing arrears problem atthe national level and, although it has been reported that these efforts havemomentarily alleviated the situation, the creation of new arrears continues tobe a problem in the water sector even today. This is a problem that cannot besolved until the r6gies (collectivites locales) pay their bills; payment ofthese bills should improve as more financial resources are being obtainedthrough transfer of 30% of VAT and the new legislation for local taxes, whichfavors the collectivites locales, is approved by the parliament.

6.08 Although there were considerable delays in the implementation of thehouse connection program, a total of 52,000 house connections were madecompared to the appraisal estimate of 48,000, and about 420,000 low-incomehabitants are now served by these connections. On the basis of these figuresthe Regies together achieved the target for house connections. However, whilethe R6gies of Rabat-Sale and Kenitra exceeded their targets considerably (52and 153 percent respectively), the Regie of Casablanca completed only 52percent of its program due to unsolved administrative difficulties concerningthe connection of rented houses and apartments to the distribution system.The latter Regie is now executing a more important house connection programfinanced under the Third Water Supply Project (Loan 2006-MOR). All threeR6gies benefitted from the house connection program by an increase in theirdistribution networks, improved billing operations, procurement and servicelevels which on the average grew from 60 to about 701 of the population.

6.09 Even though the program of social connections was successful in itsphysical aspects, it was not in the financial sense, because of the followingreasons:

(a) connection costs charged to consumers were kept constant duringimplementation whereas they increased (by an average of 52%)because of inflation (37%), and because the "taxe de premieretablissement" was higher (15) than expected; connectioncharges should have been increased to match cost increases, and

(b) the fact that more than half of the cost of connections, whichwas being financed with proceeds of the Bank loan, onlent to theR6gies in US Dollar equivalents, was not considered in costingthe connections. Therefore, the Regies are absorbing part ofthe foreign exchange risk implicit in the Bank loan. The Regieshave estimated this additional cost at about 921 of the originalestimates. However, at the time of appraisal, it was GOM's

-7 -

policy to absorb the foreign exchange risk of onlent amounts.Later, GOM changed this policy and reflected this change in theonlending to the regies.

7. Project Sustainablity

7.01 The sustainability of the institutional improvements should presentno problem as they are continuously updated and developed by ONEP and theR6gies. ONEP and the Regies have the ability to maintain the installedfacilities satisfactorily and, where possible, expand them to meet increaseddemand; therefore, provided that there continues to be adequate financialresources available, there should be no difficulty in maintaining anacceptable level of benefits throughout their economic life.

8. Bank Performance

8.01 During project preparation, preappraisal, appraisal andimplementation, the Bank continued the close assistance to ONEP developedunder the first water supply project. The Bank also developed closerelationships with the Hydraulic Administration and the Regies resulting in:

(i) improving coordination amongst relevant water supply sectorinstitutions; and

(ii) contributing to developing the water supply sector throughfollow up loans 2006-MOR, 2820-MOR and 2825-MOR, includingassistance to all relevant sector institutions. The Bank playeda major role in the identification and preparation of ONEP's andthe Regies' investment programs during appraisal, although inthe case of the house connection program more attention shouldhave been paid to existing constraints.

8.02 The Bank's assistance during project implementation was instrumentalin:

(i) achieving improved disbursement procedures;

(ii) providing adequate financial support for constructing additionalproduction facilities needed for meeting increasing waterdemand; and

(iii) assisting ONEP to improve cost recovery by obtaining adequatetariff increases.

8.03 The principal lessons from this project are:

(i) water supply projects which Involve several institutions areusually complex and require particularly careful preparation.The Bank should insist on full preparation of project componentsincluding detailed technical design, administrative,organizational and financial aspects (para. 9.03);

(ii) local payment and disbursement procedures are lengthy andcumbersome in Morocco causing project delays at an increasedcost to the economy. The Bank should continue its actions atcentral government level to further improve these procedures;

-8-

(iii) the Bank should exercise more care in designing socialconnection programs financed by the Bank and make their costmore explicit to borrowers;

(iv) improvements in operational efficiency can lead to substantialsavings in operating costs and charges to consumers;

(v) the Bank should continue to be flexible, when needed, byadapting financial covenants to changed circumstances, but thenbe ready to take the difficult decisions needed to enforce them;

(vi) in future projects, the Bank should examine the possibility offinancing the cost of consultants needed to carry out fixedassets inventories, as was later done under Loan 2825-MOR; and

(vii) in countries where the institutional set-up involves a nationalcompany (ONEP) and regional companies (regies) the cost recoveryissue should be studied at the sectoral level since theinterdependence of national and regional companies make itdifficult to dissociate bulk from retail water costs; in lightof this lesson, under Loan 2825-MOR tariffs are being reviewedat the national level.

9. Borrower Performance

9.01 Project preparation studies and works' supervision were efficientlycarried out by ONEP's staff with the assistance of external consultants.During the implementation of the project, ONEP developed efficient and wellmanaged divisions responsible for implementation, operation and maintenance ofthe bulk water supply components in Agadir and the Mid-Atlantic Coast Region.Project preparation carried out by the Regies was less satisfactory, becausecertain aspects related to the implementation of the house connection programwere not studied in detail during project preparation.

9.02 However, the performance of the Regie of Rabat-Sal6 duringimplementation was excellent. While the Regies of Casablanca and Kenitra onlyachieved about 35% of the house connection program before the original loancloa4ng date, the R4gie of Rabat-Sale achieved about 95X. The latter R6gie,whi-h created a specialized unit for social house connections, continued itsexce_lent performance during the following years.

9.03 The Hydraulic Administration performed well in the execution of itsinvestigations for water resources but has not been able to avoid theconsiderable delays in the implementation of its water resource masterplanstudies caused by lengthy approval procedures of study reports by a multitudeof relevant sector institutions. The second phase of these studies, which wasnot completed under Loan 1724-MOR, is now being financed under Loan 2825-MOR.All beneficiaries prepared progress reports timely and provided timelyappropriate information to the Bank on outstanding issues.

9.04 The principal lessons of experience are that:

(i) creation in ONEP of efficient permanent divisions responsiblefor construction and operation of simple and complex projectcomponents has contributed to smooth project implementation;

- 9 -

(ii) proper reporting and timely provision of adequate information tointerested parties improves the process of decision making;

(iii) water resource studies are by nature complex and require theinput of many institutions in water supply, irrigation andpower. They can only be completed in a satisfactory way byidentifying relevant institutions at an early stage and bycreating a permanent coordination panel at a national level;

(iv) the likelihood of obtaining adequate tariff revisions decreasesafter Board approval of a loan as covenant enforcement calls fordifficult decisions and then increases with the added leverageof upcoming loans and a strong stance of both the enterprise andthe Bank; and

(v) the Bank staff should increase awareness of the existence ofvices, such as arrears, which extend beyond the confines of aninvestment loan, and the Bank should address them at themacro-level through sectoral or adjustment operations. The sameconclusion is valid for undertaking sector-wide studies whichimply the participation of several ministries, e.g. agriculture.

10. Project ReLatioDship

10.01 Over the full period of the loan until its closing onDecember 31, 1987, the five loan beneficiaries and the Bank improved theirworking relationship and their understanding of the constraints in projectimplementation. This open working relationship was beneficial to theachievement of the physical and institutional objectives of the project. TheBank also provided assistance in the project preparation to the Kreditanstaltfur Wiederaufbau (KfW), which financed the water main between Rabat andCasablanca. However, after appraisal of this main by the KfW only incidentalcontacts were maintained. The Bank's relations with other GOM authoritieswere excellent at a personnel level; though the Bank did neither succeed toconvince the GOM to execute the sector organization study nor to improve localpayment procedures in the framework of the Loan. Apparently both issues,which are related to national policies, could be better addressed by the Bankat a national level through sectoral loans. The growing relationship betweenONEP and the Hydraulics Administration contributed greatly to the efficientdevelopment and operation of available ground water resources which are moreeconomical for drink water supply than surface water resources. The relationsbetween ONEP and the Regies could be improved by eliminating disagreements onthe appropriate use of water resources managed by ONEP and by the Regiesthemselves.

11. Consldtants, Contractors and Suppliers

11.01 Contractors, consultants and suppliers, both local and foreign,generally performed well. Only two contractors did not complete the civilworks contracts; the uncompleted works were later executed by othercontractors. The design consultants were competent and carried out theirduties satisfactorily. Exercise of flexibility improved performance as:

(i) during project implementation consultants for supervisionreplaced staff upon the request of ONEP; and

- 10 -

(ii) consultants 'in charge of the water resource masterplan studies,appointed a resident assistant teamleader to assist in improvinginternal coordination.

12. Project Documentation and Data

12.01 On the basis of the appraisal report, the Bank concluded a loanagreement with GOM and a project agreement with ONEP. The SAR included adetailed technical description of each project component which was reflectedin the loan agreement. The documents did serve adequately during projectimplementation. Loan amendments increasing the income levels for familieseligible for house connections, increasing disbursements under SAP andmodifying the project description were made. Some of these amendments couldhave been avoided with a less detailed technical description of projectcomponents. The staff appraisal report and loan documents provided a usefulframework for all relevant parties during project implementation.

12.02 The required data for preparation of the PCR were not always readilyavailable because of:

(i) incomplete project correspondence files; and

(ii) missing reports, progress reports and project data.

12.03 Completing files required unnecessary input (bank staff). Two watersupply loans (Loan 2006-MOR and 2825-MOR) which were concluded with the sameborrowers seem, besides the lack of filing discipline of Bank staff, to havecontributed to incorrect filing.

- 11 -

PROJECT COMPLETION REPOAT

MOROCCO


PART II

Borrower's comments

We confirm the adequacy and accuracy of the data presented in theattached annexes to the PCR report. The analysis made by Bank staff in partI of the PCR is based on factual information provided by the Moroccanbeneficiaries of the Loan 1724-MOR and gives no reason for specialcomments. In addition to the Bank's participation in the financing of theproject components we would like to express our appreciation for: (i) theBank's flexibility in approving additional project components needed toincrease water-production in the Mid-Atlantic Area, (ii) insistance from theBank's side to prepare progress reports enabling our technical services toimprove project implementation and monitoring, (iii) assistance from theBank in preparing terms of reference and in evaluating study results; and(iv) assistance from the Bank in achieving adequate financial results. Weappreciate also the effective dialogue with Bank missions in Morocco startedduring implementation of Loan 1724-MOR on the development of the watersupply sector and would like to continue this dialogue during theimplementation of Loans 2006-MOR and 2825-MOR. We learned the followingrelevant lessons for the future: (i) water resource studies are complex andneed intensive monitoring from all relevant parties, (ii) importantinvestments in water supply projects need to be implemented by qualifiedpersonnel in special units, (iii) implementation planning of large watersupply projects should provide for unforeseen delays and project revisions,(iv) adequate tariff revisions should be based on clear mid-term financialprojections, and (v) although the number of house connections and,therefore, of the population served increased considerably thanks to theproject, an unforeseen financial cost to the regies resulted from thisprogram.

I-

- 12 -


MOROCCO


PART III

Related Bank Loans

Year ofLoan Title Pur e Aproval mnts

8S0-NOR. Casablanca-Rabat Construction of bulk water 1972 PPAR of 12/16/81Bulk Water Supply Project production facilities along the Hid-

Atlantic Coast and creation in ONEP ofa strong and financially viableinstitution.

2006-NR. Third Water Improvements and expansion of water 1981 AWroprisate but slowSupply Project production. transmission and implementation with

distribution; equipment: technical important disbursement lag.assistance; training; studies.

2825-NR. National Water Rehabilitation and efficiency 1987 Slow but successfulSupply Rehabilitation improvement of existing production implementation.Project and distribution systems; introduction

of long-term policy reforms tostrengthen overall sector developments.

In addition, seven Bank-financed agricultural. two urban development projects and one publicenterprise restructuring loan contain water supply components.

- 13 -

MOROCCO



Project Timetable

Date Date DateItem Planned Revised Actual

1. Identification 4/75 (a) 4-5/75(b) 5-6/76

2. Preparation 11/76 (a) 6/77(b) 12/77(c) 3/78

3. Pre-appraisal mission 6-7/78

4. Appraisal mission 10-11/77 9-10/77 2/775-6/78 10-11/78

5. Pre-negotiation mission - - 4/79

6. Loan negotiations 7/77 - 4/25-519/79

7. Board approval - - 6/7/79

8. Loan signature - - 7/2/79

9. Loan effectiveness 10/3/79 12/3/79 2/4/80

10. Loan closing 6/3O/84 6/30/86 6/30/856/30/87 12/31/87

12/8511. Project completion 5/83 12/86

3/87

Comments:

Issues raised at different processing stages:

1. (a) Lack of preparation of some possible components; possibilitythat KfW might finance one component.

(b) Sector organization; payment arrears; deficient operation ofdistribution systems; lack of Government sector policy;unclear definition of components.

- 14 -

2. (a) Deteriorated ONEP's financial situation; recommends Governmentaction before appraisal; unavailability of feasibility study forRabat-Casablanca extension.

(b) First Project Brief: uncertain timing of bome projectcomponents; budgetary allocations of counterpart funds for thefund for house connections, institutional framework andonlending criteria to be agreed upon; creation of a regie inAgadir to take over water supply distribution from ONEP.

(c) Unavailability of feasibility study for Rabat-Casablancaextension; retroactive financing of Agadir water productioncomponent; inappropriate area for stabilization ponds forAgadir's sewage treatment; inclusion of responsibility forsewerage in Agadir's regie being created; replacement of rate ofreturn by cash generation covenant; funIl for house connections:areas to benefit, Bank local cost financing, lending terms,financing of works.

3. Amount of Bank financing; project scope; retroactive financing forAgadir water production component; location of sewage treatment plant forAgadir; sewerage tariffs; creation of Agadir regie; fund for house connection;ONEP's arrears.

4. Project scope; loan amount and cofinancing; advance contracting andretroactive financing; organization; accounting; tariffs; arrears; fund forfinancing house connections; use of local labor on force account.Importantly, the Bank decided not to change the existing (loan 850-MOR) rateof return covenant by a cash generation covenant formulated as a specificpercentage of gross fixed assets and work in progress "as it would not-necessarily assure cost recovery".

- 15 -

MOROCCO



Loan Disbursements(US$ million)

Fiscal Year 1980 1981 1982 1983 1984 1985 1986 1987 1988

Appraisal estimate 11.81 25.56 41.49 47.45 49.00Actual 0.18 6.45 16.01 27.77 32.62 36.00 40.44 46.03 49.00Actual as X of Estimate 1.5 25.2 38.6 58.5 66.6 73.5 82.5 93.9 100.0

mm

hI 6 i63 tl Letmi fomat ki)tm Foreast Ideal layet hetml louemi html FM""ga html lineal html Fonmai html lOfmte html fForecast etI l~enGtO htm fmtlater weheed (UI 32111.1 141.4 111.1 I.0 [ .e. 262.6 113. 241.1 1050 I 261 21.3 I1. M.2 25110 32.1 3138 W. 3 11 316.11 316 6 3114.61 14.1 1416.1 41S.6 11 ,111. 2 2.0 .1 112

slta wmd: Ii II 3 ':2: '1: 1:2 111 l I3J :13 31 331: 2)j 1.1 23j 33J 13j3 3fl 9.1 IIII 'D 'I '1: WITSUl IP m in d (WI 313.1 I2n.? 134.4 3114.1 I.. 166.11 .265 .6 2111 21. 1 23.6 131.1 351.2 265.3 3116.2 331.6 325I3631 311 43W1 3111.1 3516 11 Of. 34A 5316 1.31116 I .235:1 r22' ~' 1!I I.Id ~I~I ~L! ::: ~ NII 124.5 lii 14.2 SI 362 16.1 13.1 111114 3*1.5 16

SI? be Ii ~~~~~~~~~~~~~~~~ ii '9~~~~~~~2 '. He IIm31 ~~~~~~~~:. * ~~~~~~W112.1 1312 Jiij lAfi 11

St 31 let Si 11 ; ii p3.1 311 It I 1. 1 S7£ 3p~ Iq i ua1 ahis aim... ~~~~~~~~~~ '~~i~~ III Ih III fd iii ~~~~~~~~~~~Ij !$I 1. j 6flj301 1. . 1. J I~.M I

~~sl3~ IAeeee/3)A3~ 1 'L'd P I IVI.4QV(j94 31II'i'ii'w . E I. 1 L N1111 1 U,i I 1 1 1.1

rametio i 1? .IN 1U?1IL 1 3 i?lit 11ll l t ID 3 ttise1i~'~te t.~ ... 2.3 .5 35 27 3. 2. 4343I. 33 4 (I 11 4 .33 7. 343 .1 ( 13 0 .3 12 13 IF 3 I$1 4204

are ~~~~~~~~~~~~~~~ee IIWUI 53.~ ~ ~ ~ ~~~~~~~~~~~~~~IIII p I L I1 111imd16?oeem rg arc rg23161 ' U ""I I ' 44IV '1 '1 a 0 2 1 I9 Uu pnle o m .44 H3 114 05 t il12012 IU0 173 6. 186 II~ 3 U*W '' 1-4SIa'i4i-S1U 'I a'I I"? S'"" .s

0 1 an suotil imme I

m

t I I I I I I's 9 I 6 I I z I I I't 51 9,; I I t'i lt'si 111 it's) VI t's O'l 9,1 I't 13 VI FE t' lu

i p I' iq 11 11 Hi I i H 1'. I I " 9. 1411, W I 1, "10, 3: I 1.9 I 1: 1,1 .1,H)... ..... .... ..... ..... .... ..... ..... ..... ..... .... .....

t$S'z I 19.9 I ISI I m I lqi 0 IN I a 4 105 I gi I M. C'ttt 0 t" UM I on C'No I to 6 in I'M I' iti I'm IV t II I lit I lot t's ("Os

... .... ..... .. . .... .... ..... .... ..... ..... ..... ... . .....

GE I a sit 0 iz 5 al z 09 I,H I II Oil z It I I GI 11 H 5 I S't '141sign is"* to J110102

I zi . g0 I p - I I'll I'll I I

I I loll I sit I Lit aft L PE

I I If 11 it, it

4131 M9 ES' 6 St

T ir Do ot 0 9 W It ?I 1, I "I H

6 ntlt I S" VW I III 0 W IEl 5 lit 6 OL LU 9 lit I ttt 9 LU C'CU I 10 I'lg I'm C'Oll 0 SO I'" .11111 ;,tzl I VII t'"t 6's

nm. . .. ..... . . . ..... .....

's 6 il'tt '; 6 1 s"a Hu I I't I 'I'm Hill, 1:141 I-ih 41tt i'Di I'lot I.Ia 1:6 11 I-lit 11 1-h l'iti th I 41 IL "U"UW

ti I Ul I Is q a I III I 0 W lzi it W UI I 14I I'll It'll) I'll I'U t'" t'll M W(to 6 n I I to'ni t'll fl'Uj tilci I I 94; 10 ""M llw"gl 19

'til I II 0

obas i"ovlgAwo 1"01

.: ... I . .. ..... -_- -- ."', .. .. .... ..... ..... .....

113 I to L I I I III I es 111,1111 c Is I'M 1 IS il'of 010 ft'ito 4111 cla te'Ul UK I'll t I 0.0 I'm t II

it it I

It I'm

.. . .... ..... .... .. ..... .....'it is. I It Iff t 11 .. .....

llo

C's 1, it 0 v 'I'll, 1: f, 1:11 I

.... .. ..... .... .. . .....Si I

91, V 5 U1=9iUl 15

1,11 1 9 th f flo 6, IN I '60 I 'ti 11 l'it 1, 9 i'L UII 1-it o"lt s"' UI Q"lt 1-11 t"lt I'll H

31A I M I III I,qa p 1.41 1 a I oil t Lti 0 $a I Cs O'Ki olu I'll 4,11 VU (6 if 110 UI Ila q'it t'a I' I? t'tt I't I it "ni p

.. . ... ..... .... . ... .... ..... .. ... ..... .... .....

. .....

to I t I'l, I I'l 'I"tu Oll Pot ["it f .III 1111 'I 61' fift 'I U 1:9,1 TIP 1-i'l 1-ft, I't'i 'I'a) I-L Ut 1.4 I'h I'h 11 1:11

.. ..... I.... ........ .. ... ... .... ...... ........ ...... ........ ...... ........ ...... ........ ...... ...... . ...... ....... ...... ........ ....... ....... ....... .......

I"Vpl 110131 "a" Mal ismai lnm imuoi I"In Immol l"In I"PJQj (In" IMMOS I-M 100"j 10"31 I-U*j I" I-MAOS 11"31 la-4 IW43V lw#n Joel" in"

. , , ....... ii ... .. ................ .......... ... .. ............ ............... ............... ........ ...... ..... .. *.... .. ............ ............... ....... ...... .......

lni Ull I ml int out 1161 got A tom 'O' fill all lot list M

A"i 11"M

................. ........ ..........I 10 "Ni 10 NOIJ loromi P" ignn

sm In IC? 843PL1 ?2 SE OP09? 4-0............................... 812.........

hetuil and Forecast lalsuce Whets of M88 - 259114

11 bdin Ppenbe 31 197 1976 111 197B1679 totilli8 1981 los82n 1883 1984 1985 In8g 19n1

asSET Actual Icteil Actual Actual forecast Actul Forecat Acts. lforest actual forecast Actual forecast Actual forecast Actual Forecast ctual lorecst Actial forecas Actual forecatVised poets id operation 16).(I778 910 *442~ .149328. 131 314i~ ' ~ ~ f! 2:j9, ( 321U 1 2iIn-1)31111:1i110.21 21I1 I.,,)1#1t1i.I,:iIi.t1IUfAcasloated deprecIation (22.5 M3 2 "s315.12 11.1 2oO lj.i t422 2c8 a.)ifs-8) uISs.41 1424 I I8@S (PI3.2i. let filed asote.in operatjio 343. 822.6 625.4 682.1 628.2 188. 8.6 113.1 188.9 862.1 991.2 1.131.11.232.91 1.181.) 1,161.j 2.123:4 2.1. 2.1 1II' ~t I .M.1W '.1!1-5 .J 1i:7 2:flfork Is onrorso 136.6 2). 99.. 12 221.1 28.3 124. 266.6 11.18.8 29 111 21611. 3.Total set fled asonet 1.1 651 281 8.4 182 3,2.4, 92 4 2 9856" 1'1,294.2 1 182. 2 i,5621 1,711.) 1,811. 2S .287 2 2,60. 2.6-48.0 2,8. ,81 ,3 3-.90J 93.412 2 ,28. K.IWI

?es rik pfoision 08 881 8.8 880 0.8 . 0.0 . 0 0. I- 0. 130.1 8.8 1a4.8 880 201.8 8.8 228.8 980 289.3 880

to~~~~hs 8~~~~.8 1.0 9.7 23.9 10.6 21 3 1018 103 136 21.2 11 2 21. 212 3. 20.9 39.5 28.1 39.8 21.1 22.3 26 3.) 24

4 94.1 2,838.2 354~~~~~~~~~~1 l 5. 2,19.4Castosers otIs. contrIte. 8.6 28.2 282218196 091 3 ~~~~~~~2 2 28.1 1,481 ~~~IN OR.31.192.2 813.20.02131..1 13.1 1 .Ie,alatlo resnt 28.8 14.8 158 158 118 1144 154. 1184 21.4 14.8 58.4 114. 2144 1584 21.4 18.4 54.8 218. 18. I14 8144 IIi.

debt ~ ~ ~ ~ 25~~~: I ~~~~i ~~ 14* '2~ ?1 4 11. 282.4 85 1 36 1 65. 156.0 819.2 I 919.0 911.Accounts 9aJsbIe 61~~0 -1-4.1 ii. -91 2)93-, 62 38. 1-2844 iO 42.8I o ...1..493 1819 6.8 .3429.8 13.0 52.4. 1 $2.5 612 15 1 10. 512.85 1838 81.1.8 23.4 1413.) 240.4

ToaTo rsttalltos 6. 1. 8.c246 4311rre1.c1t1 1.1 11. 81 292 25 3. 229U1. 281 1 8 12115 1 29608 3 29

Toti tal "sets ah1)Oe 16.17 18.1 939.5 1,016.4 9218 83,681892043.91.242.0 1.201.51,838.2 111.7 3 2,118.2 2,891.8 3,818.4 2.152.9 3,654.9 2,212.0 4,088.1 28117.4 4,354.2 32186.9 4,5161 4,41.4

Doebsn oc.po2.tr ib t .ol 291. 375 23 19 68 $. 19 1 69 629 23 Ii .2 63 T 1,30. 2841 121 2- 2 2 0 2493 11280 2,731 21 2 1 1 2I0111 oto 09 fotrecast TOe.. 1orI?'I 1

1186nt an 193 foecst llu aaret1 173lIIi07-ti Apes r -89 44 144 5 A 5 5 5 54. 5. 5.

- 19 -

O, N E P -6r Avg revmnue and wknq *op in 1975 Dh.0h.3

0.44 A

0.42 -

0.4 \\

0.38 /

0.34 .q

0.32 - _z

0.3

0.28 -

0.26 ,1975 1976 1977 1979 1979 1I 9 lie I'382 1983 1984 1985 1986 19S-

YEAF;a Average reven,Je + Avg wcrking exp

- 20 -

";j>~~~~~~~~~~;jj-- ;;.- _r

5 I501 nmsmm'

COMUUTIZUONS

z- ; !

'too -

137 5 i178 19'7 1-~7! 12'? 1 980 1SO1 i 9e2 1 93 1- 984 i9es 1 386 iie8

4Y JAR S

0 .4'CG+C+CC 1- .ICG++C.icC-El *.0 ti : ,

NECO: Not Internal Cat geum:atlon;

C: Cash

CC: Customer co,tribuclaus

3: Borrowings

GC: Cov.tvmua coutrtbutlou

MOROCCO


SECOND WATER SUPPLY PROJECT lLOAN 1724-MOR)

Protect Costs and Financing

A. Project Costs

Item Appraisal Estimates Li Actual Increase X IncreaseOH million (Decrease) (Decrease)

A. Casablanca Bulk WaterSupply:Bou Regreg Water Productionincl. transmission to Rabat 207.76 347.76 140.00 67

Transmission Pipelineto Casablanca 267.13 352.28 85.11 32Rehabilitation of Fouarat 19.85 19.85 NA LIBooster station at Shkirat 40.12 40.12 NA LIPressure pipe 35.45 35.45 NA L/Agadir Bulk Water

Supply 93.80 110.04 16.24 17 La

C. Consulting Services 46.43 32.64 (13.79) (29)

0. Fund for House Connections 82.11 125.63 43.25 53

Total 697.22 1,063.77 366.55 53

B. Proiect Financing

US $ million LIBank loan 49.00 49.00 - -Other Foreign Loan 33.34 24.00 (9.34) (28) /4FEC Loan to Regies 8.50 8.SO - -Government Contribution 91.68 196.97 105.29 11il

Total Financing 182.52 278.47 95.95 53

1) includes contingencies and price escalation.2) additional project components.3) includes additional construction of housing and office4) KfW: DM 62.4 million5) translated at the exchange rate of US$1 = OH 3.82

- 22 -

MOROCCO


SECOND WATER SUPPLY PROJECT tLOAN 1724-MORI

Status of Covenants

Covunant Subiect Oeadline forCg°ln;!ance Statuls

A. Loan Agregmnt. Section

3.01(a) Borrower shall provide funds sufficient to Complied with.carry out sub-Parts 0(2) and (5) of theProject

3.01(b) Borrower shall employ. by 1/2/82, consultants 1/02/82 11/22/85to carry out the study in sub-Part D(2) ofthe Project

3.01(c) Borrower shall ensure that foregoing study 12/31/82 Study ongoing underwill be completed by 12/31/82 and its Loan 2825-MORrecomnendations implemented by 6/30/83 6/30/83 Idem. Complied with

3.01(e) Borrower shall relend portion of loanproceeds to ONEP unuier a subsidiary loanagreement

3.01(f) Borrower will enter intl lending agreements Loan agreements betweenwith RAO, RED and RAK under certain terms and RAO. RED and RAK. and

Governmentconditions; municipalities will continue to and FEC complied with.expand network of public stand-pipes; localfunds to be provided to RAO, RED & RAK by FEC

3.01(g) Borrower shall enter into subsidiary loanagreements with RAO. RED and RAK for financing.through credit facilities. house connections

3.01(i) Borrower will send to the Bank quarterly Good quality. on timereports

3.01(j) Not later than six months after completion of Complied with ten monthssub-Part 0(2) and Part C of the Project, after loan closingBorrower will send to the Bank ProjectCompletion Report

3.01(n) Regies will have their certificate of Complied withexpenditures certified by their Contr6leurFinancier

4.02 Borrower shall continue to award to ONEP Complied with. Paymentwas eliminated 12/31/81

annual grants of OH 5 million, until 12/31/81. eliminated 12/31/81.to offset ONEP's distribution losses outsidethe Atlantic Coastal Zone

4.03 Borrower shall enable ONEP to charge its Agreed tariff increasescustomers according to Section 4.03 of the P.A. did not meet these requt

rements4.04 Borrower shall enable ONEP to charge Complied with.

distribution agencies and not require ONEP tomake payments to Water Equalization Fund

4.05 Borrower shall ensure that its departments, After partial solution,municipalities and agencies shall pay waber problem reoccured and isbills within 120 days still present today.

4.06 Borrower shall permit ONEP to retain surplus Complied with.revenue to finance portion of investments

4.07 ONEP shall have exclusive rights to the water Complied withstored in the Bou Regreg Dam reservoir

4.08(b) Oams will be inspected Complied withS.01(f) Signing of KfW cofinancing agreement is a 6/30/80 Extended to 2/27/81 on

condition of effectiveness 10/30/80. Signed 2/25/81.Effective 1/25/82

- 23 -

Deadline forCovenant SL Cgmol Jange XtaWus

B. Ptrect Armuement. Section

2.02(a) ONEP shall employ engineering consultants Complied with2.02(b) ONEP shall employ a water treatment expert 1/01/80 Waived as water of acceptable

quality was being produced by ONEPwith reasonable use of chemicals

2.02(c) ONEP shall take measures to inventory all 6/30/80 20% done by 6/80. 10/80its assets ONEP hires consultants to carry it

out but 80% completed byend-1987.

2.05(b) ONEP shall send to the Bank quarterly reports Good quality; on time2.05(c) ONEP shall send to the Bank a Project Completion report received

Completion Report not later than six months ten month after closing daafter the Closing Date te

3.03(a) ONEP will complete and then implement ongoing Complied withorganization study

3.03(b) ONEP shall implement new accounting system 12/31/79 Implemented in 1982-83.3.03(c) ONEP shall intitiate a study for improving 1/01/80 Deadline postponed to 1/1/81.

its operational procedures, shall complete By 3/81 ONEP had created taskit within 9 months and implement it by force. which was successful.1/1/81 1/01/81

4.02 ONEP shall send to the Bank audited accounts Complied with.not later than six months after the end ofeach year

4.03(a) ONEP shall earn an annual rate of return on ROR obtained: 1980: -1.9%its average net fixed assets of not less than 1981: -6.1%2% in 1980. S% in 1981 and 7% in 1982 andthereafterChanged since 1982 by Loan 2006-90R: ONEP WR obtained: 1982:0.92; 1983:0.87;shall maintain a working ratio not exceeding 1984:0.67; 1985:0.61; 1986:0.60;0.66 starting with FY82 1987:0.58.

4.03(d) ONEP shall not reduce its bulk water tariffs. Complied with.ONEP shall send to the Bank. by end Octobereach year financial forecasts

4.04 ONEP shall not incur any debt unless its debt CR obtained: 1980: 0.3; 1981:-0.4service coverage ratio is not less than1-1/2 times.Changed to 1.3 times since 1982 by Loan CR obtained: 1982:-0.1; 1983:0.8:2006-HOR 1984:1.5; 1985:1.8; 1986:1.9;

1987: 2.0.

towat cWtEZ MiMam .. muii ..i. is.t-,urnt

Ia, 131 317 ini ma se stU Iins Itn Un tIt Ism im i,, ,,,,,,, ~~~.. .. .,. .... ... . .... .. ... .... _........ ....... ...... ....... ....... ....... .. . ... ... ... .... .. . ......... ....... ...... ..... ..... ..... ........ .. S4a X t tkll X lt1t1ttSt11tI5. Itafhu

.... ........St at pmuut Istaf 6 .3 3 .3 * g.e ma. * 2.S 3,3.6 6.6 1,23.76 6.0 1.35.0 1.6 34.6 3,335.6 1,.35. 3,3.0 1.53 1.1.6 3.15.6 1. ,373".6 1.1. ,13.3 iu.,2. huts qeattua

I 11 1 iII':I I'II'I'il 'iiiiiI'II i '1.mEa. a. 11 m 1111 l a. i

':$': 910: 84: 111 911¶3 J.tlbm ait at,

bub §I cumttuu3 11.1 tt.t 33.3 i".@ :".| tl? .11 * iI.i :1;$ 'tIi ,ii sk III 1.i t. ~il ~tH l *,1 ii Jj ni U. ' ,.-,~~~~~~~~~~~~43. glmmIL" 3 L" =1 t e? 2a . 3.5 1.1 2.1 1.6 2.3 41.3) 0.1 (6.11 1.1 15.1) 10 44.21 1.1 11(.1 1.1 0.1 1.2 1.1 3.1 1.0 0.2

Mtt* .#l-t 11X. If

3 1.l Po

13t I 32 1: ,3 t3 2 1 t1 I "2 U5 2 11 2 St 2 §1 9. a 2.6 Po. Int= a2 2.4 2.3 2.2 II 1.5 1.3 1.4 .1 1.3 5 .1146 2.6 (1.11 2.6 0.3 2.3 I.S 1 . 1.6 I.3 1.3 1. 5.6 1.6

.34~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~.-h~~~~~ e ~~.45 1.34 13.6 1.10 m. 650B.. .1*. 1.46 . 65 .'a "a' f 3 1 51. 5 1 1. hf,6.U1510 ll .1§4 3 66 lli tl fi 11 35 3. 11 li I's- .21 1 .33 6.11 2tt m. 0.tl 6.* I.U 1 .0 I.lt l.d l. St . 1. :3 *.1 n 1 1.2 1 W wit d ,,. 91.1 6.16 0.21$A 0.13 @1.1 21.1 811- Un m.3 1.1 1.0 *IIAS 1.1 01131 0.10 .1 "1 11#3 11.112 .12 il1.1

..........................

~ ~Ehi35? ii sotd~ 353 3.53 6.11 3.13 mm. 6.16 ma 3~11 333 123 6.05I1 .- 1 I 1:I :

s... ..... ..... ...... ... ...... ... ..... I .... .. .. ..... .....Imauslamt mm. 6.333 6.345 6.324 3.325 3.331 6.323 6.310 6.3 .11 .1 .32 1.12 6. 0.3 3.331 6.313 I . 2 3 2 1 6.31 I It 6.31 ? 6 335 4443 1 35 51 t216I1 1 .1 6.33.61.13I. 1 3.11.54 I 11 2 3 36. I 16313 6Al----- ~~~~~~~~~~~~ .. ...... ..... ..... .... .. .... .... ..... ..... ..... ..... ....--- ..... ........ftoul * 3,335 4,440 3,35 3.5 31.111 11., 12". n3 .m 3 1 43,75 33135 4.14 lI.t U.lJ1 HIM. u.1

MR:W; l §fi1 tot 2t

- 25 -

PROJECT COMPLETION 3EPfRI

SEpOND WATER SUPPLY PROJECT ILOAN 1724-MOi

Use of Bank Reonurcgs

missions

Stage of Project Month/ No. of Oays in Specialization Performance Types ofCvelm . aXer. Wsong fittel renrespnted Ratina Status al Problems b)Through Apprai1al 4-S/7S 1 10 engineer N/A N/A

S-6/76 2 1S eng.-fin. an. N/A N/A6/77* 2 8 eng.-fin. an. N/A N/A12/77* 2 10 eng.-fin. an. N/A N/A3/78 3 14 eng.-2 fin. an. N/A N/A

6-7/78 4 1S 2 eng.-2 fin. an. N/A N/A10-11/78 4 28 1 eng.-2 fin. an.-l cons. N/A N/A

Appraisal throughBoard Approval 4/79 1 10 fin. an. N/A N/A

S/79 1 S fin. an. N/A N/A

Board Approval throughEffectiveness 7-8/79* 2 10 2 eng. 1.2 P

10/79* 2 16 1 eng.-l fin. an. 1.2 P

SWpervision 5/80* 2 21 1 eng.-l fin. an. 1,2 T."-10/80* 2 20 1 eng.-l fin. an. 2,2 T.F3/81 2 14 1 eng.-i fin. an. 2.1 T6/81* 1 10 I eng. 2.2 T9/81* 1 7 1 eng. 2,1 T,F1/82* 2 14 1 eng.-l fin. an. 2.1 H5/82* 2 14 1 eng.-l fin. an. 2,1 H10/821 2 14 1 eng.-l fin. an. 2.2 H O2/83' 2 S 1 Ieng.-l fin. an. 2.2 MHO6/83' 2 20 1 eng.-1 fin. an. 2.2 H.F

10-11/83' 1 14 1 fin. an. 2.1 HNF3/84' 3 24 eng.-fin. an.-procur. 2.1 H.F9/84' 3 18 eng.-fin. an.-procur. 2.1 M.F

3-4/85* 2 17 1 eng.-l fin. an. 2.1 H.F4/86' 3 11 eng.-fin. an.-procur. 112/86' 2 is 1 eng.-l fin. an. 110/87' 2 20 1 eng.-1 fin. an. 13/88' 1 24 1 eng. I -7/88' PCR 2 17 1 eng.-l fin. an. 110/88 PCR 2 9 1 eng.-l fin. an. 1

Perfonmance att 1n

* Combined with supervision of other ongoing project(s) b) F: financiala) 1. Problem-free or minor problems N: managerial2. Moderate problems T: technical3. Major problems P: political

0: other

Sus

1. Improving 3. Deteriorating2. Stationary

- 26 -

MOROCCO


SECOND WATER SUPPLY PROJECT (LOAN 1724-NOR)

Studies

s ~~Description Purpose stau lact

1. TA Design and construction Cmplied with Positivesupervision

2. Study Water resource management Carried out Proposed actionGreater Agadir implemented

3. Study Improvement of water Carried out Substantial savingstreatment achieved

4. Study Operational improvement Carried out Substantial savingsin smaller centres achieved

S. Study Water sector organization Partly carried out Tariffs were updated.and tariff update Sector organization to

be carried out underLoan 2825-MOR.

4W~~~~~~~~~~~~~4

- ./ 8 MOROCCO/____ , SECOND WATER SUPPLY PROJECT

r972 BAtS tSWWW IBAK) KENITRA CASABLANCA COASTAL ZONEEXISuWdG I iZn FR1CE /trCT

OEA I S RADD. MD GaSP GaSP I -'

Rivd -W stream - 'sV......... ...... ii~~~tamt of Gio P,a 8tx Reru R/ e, s

=)q ~~~~~~~~~., f .w %. *S. 9&z--------- ~Tuen.os

uwO FIsnu2ool

a

J ° O °~0 Sfw tor&$effs5- / Aw * * WUlifd*A> ............. o s

SMAT 5StMvdb 0 pomp

QL~~~~ CASASL4AW)A

0 0T.0.g,s

001A1M

C, ~~q y \\ I o ol\wa\ *

I ,, 5 S 11 -25

\ '~~~~~a - .. -- ,; '.a. '-

.. ~a.

ow reD. " .'

IBRD 1 4089R9-30 WO 9-10

TZAURT DAM

MOROCCO

SECOND WATER SUPPLY PROJECTAGADIR

PROPOSEDEXISTING PROJECT,

Pipelines

Pumping Stotions _3-Storoge Tanks Q 0Treatment Plont

DomIntake .4j. DJKILA INTAKE

Intake ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~300 Ih,WellfieldsRiversMajor Roads 2nd PhaseTowns

30'30' ~~~~~~~~~~~~~~~~~~~~~~~~~STORAGE 30,300 I0KiIome5ers TANK O

a a r X o: £s t - ~~~~~~~~~~~~~~~~~~~~~~~To? r,

r 1st Phaise / \ a \ | \ ;

IBRD 3720R

MOROCCO TG

SECOND WATER SUPPLY PROJECT TA Moifi0eMfaeronSWATER SUPPLY SYSTEMS A N Nl rod

N.nnbon ole region boundriR. GoIMaO

…Pnooe bovodonoes - ' ' -d. 7NADOR

etoreOnot,oool booLn,espp ZIPROJECT AREA / t_ 'O

~~-~~--- RainRoll ooon 400mm 000 Reon ~ ~ ~ ~ ~ ~ ~ ~ ~ Moi¶oi~~~ A o'OUJDA /'~~~~~ ALGERIAIWATER DISTRIBUTION AND PRODUCTION CASABLAA LQ S.

R oct LOCOI ONEP Pod.,- Doib-no & P,n- 'nd KHE I - ,- I

3 < < _g 4~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~N FiG UIGo * U ~~~~~~~~~0K

EUQG A D [OD v _

O 0 ET\' o ' ; 2 t E K-E L

' ONeP Regonly Center and StlMite

PR,C A A/ toTw' Zog-on ,,

0/ ,/ I

T I Z NIl T _: KILOAETZIs

,- d . -8u o Toto J J-

&onlo,o~~~~~~~~~~~~~~~~~~~~~~~~%,

-< r -vo

/ Cf aS > _~~~~zz ~ ~~~~~ ~ ~~~~~~ Uctu A A Z._

/~~~~~~~~~~~RJC . .Ik

/~~~~~~~~~~~~~~I cG| t

XOCIER 19V

world bank document · 1987: us $1.00 = dh 8.27 prin cipal abbreviations and acronyms used fec -...

Documents