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