World Bank Documentdocuments.worldbank.org/curated/en/141871468273879669/pdf/multi... · 1.01 Morocco is one of Africa's most urbanized nations. ... The most serious problems facing

Document ofT'n~e world Bank

FOR OFFICIAL lUS}i ONLY

Report No.1 800-MOR

,IUCDOM 0OF MOROCCO

RBAT CURB DrVELOPfEfT PROJECT

STA FF ApPRAI SAL REPORT

February 3, 1978

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CURRENCY EQUIVALENTS

Currency Unit : Dirham (DR)

US$1 = DH 4.4DH l = US$0.23

MEASURES AND EQUIVALENTS

1 millimeter (mm) = 0.04 inches1 centimeter (cm) = 0.4 inches1 meter (m) = 40 inches

1 kilometer (km) = 0.62 mile

1 square meter (sq.m) = 10.8 square feet1 hectare (ha) = 2.47 acres1 square kilometer (sq.km)= 247 acres1 liter (1) = 0.264 US gallonI gram (gr) = 0,002 pound

I ton (t) = 2,200 pounds

ABBREVIATIONS AND ACRONYMS

BCP Banque Centrale PopulaireGOM Government of MoroccoIDC Interest during constructionMASA Ministere des Affaires Sociales et de l'ArtisanatMEN Ministere de l'Education NationaleMHAT Ministere de l'Habitat et de l'Amenagement du

TerritoreMJS Ministere de la Jeunesse et des SportsMF Ministere des FinancesMSP Ministere de la Sante PubliqueMTFP Ministere de Travail et de la Formation

ProfessionelleODCO Office de Developpement des CooperativesRED Regie Autonome Intercommunale de Distribution d'Eau

et d'Electricite de Rabat-SaleSCET Societe Centrale pour l'Equipement du TerritoireUNESCO United Nations Educational, Scientific and Cultural

Organization

GOVERNMENT OF MOROCCO

FISCAL YEAR

January 1 - December 31

FOR OFFICIAL USE uNLY

KINGDOM OF MOROCCO

RABAT URBAN DEVELOPMENT PROJECT

STAFF APPRAISAL REPORT

Table cf Contents

Page No.

I. URBAN DEVELOPMENT IN MOROCCO, RELATED GOVERNMENT POLICIESAND PROGRAMS ................................................ 3

Il. RABAT-SALE, THE URBAN SETTING, PROBLEMS AND ISSUES. 6

III. PROJECT COMPONENTS, COSTS, FINANCING AND BUDGETING. 8

A. Project Objectives and Scope ..................... ..... . 8

B. Detailed Project Description . . ....... 9

C. Project Cost Estimates . . ..... ...... 13

D. Project Financing . . .20

E. Project Budgeting and Loarn Application ......... .. . 21

IV. EXECUTING AGENCIES .23

A. Project Implementation Organization .. 23B. Ministere de l'Habitat et de l'Amenagement du Territoire. 27C. Ministere des Finances .. 28

D. Ministere de Travail et de la Formation Professionelle 28E. Banque Centrale Populaire ............................... 29

V. PROJECT IMPLEMENTATION ...... ............................... 31.

A. Implementation Schedule ..... 31B. Procurement ..... 33

C. Disbursement ............ . .. ........... 34

D. Consultant Services . . . ................................ 35

E. Technical Assistance ..... 36F. Accounts and Audits ..................................... 37

G. Operations and Maintenance ..... 38

H. Monitoring and Evaluation ..... 38I. Supervision ..... 40

This report is based on the findings of an appraisal mission to Morocco in

June 1977. Mission members included: Hans J. Peters (chief of mission),John Burfield (architect), Peter Midgley (planner), Maurice Mould (financialanalyst), Dirk Ossen (consultant engineer), Dieter Unverzagt (consultant,employment generation), and Bernard Verdier (economist).

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

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Page No.

VI. FINANCIAL ANALYSIS ........ ................................ 40

A. Cost Recovery Principles .40B. Pricing .43C. Affordability Analysis .48D. Project Cash Flow .50

VII. PROJECT JUSTIFICATION .53

VIII. CONCLUSIONS AND RECOMMENDATIONS .54

ANNEXES

1. Project Specifications and Design Standards

2. Detailed Project Cost Estimate

3. Inventory of Project Background Documents, Data and Details availablein the Project File.

PHOTOGRAPHS

1. Aerial Views of Douar Doum, Douar Maadid and Douar Hajja2. Typical Conditions in Douar Doum3. Typical Conditions in Douar Maadid4. Typical Conditions in Douar Hajja

MAPS

1. Rabat-Sale, Land Use2. Rabat, Project Area, Community Services and Infrastructure

Improvement Program3. Upgrading Scheme for Douar Doum4. Site Layout Scheme for La Butte

I. URBAN DEVELOPMENT IN MOROCCO AND RELATEDGOVERNMENT POLICIES AND PROGRAMS

1.01 Morocco is one of Africa's most urbanized nations. Since the be-ginning of this century the urban population has increased 15-fold; annualurban population increases have averaged about 4.5% over the last ten years.The country's 1977 population was 17.2 million, with 6.9 million in urbanareas. By the end of this century the urban population is expected to havereached 20 million, representing about 60% of Morocco's total population.The most serious problems facing the country's cities are housing shortageand unemployment. In early 1977 the total housing stock in urban areascomprised some 1.37 million units of which almost 25% were in slum-likesquatter settlements, and another 15% represented aged, deteriorated housingbeyond repair. Accounting for the many dwelling units occupied by two ormore households, and for housing upgrading requirements, current unsatisfiedurban housing demand is of the order of 810,000 dwelling units. This demandwill continue to increase by some 85,000 units annually. In 1976, about 50%of urban households were without water connections, 30% without electricity,and 45% without sanitary installations. Deteriorating utility networks andinadequate community services pose another problem. Limited financial re-sources and implementation capacities constrain attempts to mitigate theseproblems. Many municipalities, because of lack of staff and the volume ofwork required have ceased to exercise effective control over development oftheir jurisdictions. Education and health care services, although they arebetter on average in urban areas then in rural areas, remain inadequate.Thirty percent of urban households have monthly incomes below the country'sabsolute poverty level; between 20% and 25% of the labor force in urban areasis estimated to have no regular income and might be broadly referred to asthe informal sector.

1.02 Since the beginning of this century Morocco has undergone an eco-nomic transformation which resulted in substantial changes in the country'spopulation pattern. The central western and northwestern parts of the coun-try, where most of the population, industry and modern agriculture are lo-cated, have developed rapidly. Differences in natural factor endowment areat the origin of this concentration, and the subsequent adjustment processin spatial distribution of population to resources, activities and income.Rapid urbanization is a salient feature of the spatial adjustment of popula-tion. In the past, concentration of urban population took place in largeagglomerations, mainly along the Atlantic coast of the country's Northwest.More recently, a new trend has emerged in which the growth rates of theselarge cities were below the overall growth rate of the country's urban popu-lation. Many mid-sized cities elsewhere in the country have experiencedfast population increases in response to local factors such as the growth ofproduction in modern agriculture, and the growth of industrial production andadministrative services. A transformation of most cities has taken placeunder the ever increasing population pressure caused by rural in-migrationand natural population increase. This has resulted in population overflowsinto haphazard shanty towns and other densely populated, poorly planned andserviced districts which are now a permanent feature of Moroccan cities.

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1.03 Government policies and program in urban development were notalways effective in dealing with urban problems. During the first yearsof the French administration under the Protectorate a tradition was estab-lished of government interest and action at the highest levels; nothing butthe best quality would do for the cities of Morocco. However, the momentumof the early activism in urban development was not maintained, and from themid-1920s until the end of the Second World War central government interven-tion in urban affairs was minimal. The war left two important legacies forMorocco's cities; the first was the establishment of industries, the growthof which has transformed the appearance, character and problems of many Mor-occan cities. The second stems from the failure of government to cope withthe development of cities both before and during the war. After the war, theadministration addressed mounting urban problems through thoughtful planningand vigorous policies. An urban planning legislation, still valid today, wasestablished. During the first decade after independence in 1956 the Govern-ment of Morocco's (GOM's) attention was focussed away from the cities andtheir development; it was also a period when resources were limited. Emphasiswas put on measures to stimulate the growth of a stagnant agricultural sector.Rural development was first priority partly because the stagnation of theagricultural sector was viewed as the principal impediment to national de-velopment, but also because GOM hoped to check or at least to slow therebymigration to the cities. This policy found expression in Morocco's develop-ment plans between 1965 and 1972, but urban population continued to grow ata rapid pace. In the late 1960s GOM reassessed policies toward urban develop-ment. As a result, the 1973-1977 Development Plan provided for a sizeablepublic housing program. Unfortunately, the Plan fell substantially short ofachieving its targets, especially in urban land development and housing. Atthe end of the Plan period it is evident that only about 40% of the housingconstruction target has been achieved. The reasons are primarily poor organi-zation, inadequate staffing and insufficient Government budgets. Costlydesign standards eroded budget provisions prematurely and rendered many hous-ing schemes unaffordable by urban low income groups. Another reason for theinsufficiency of budget allocations for urban development was poor recoveryof investment, operating and maintenance costs of urban schemes and serviceswhich necessitated substantial government subsidies. These subsidy require-ments consumed much of the budget allocations for urban development. Resourcemobilization in the open market for financing urban development, especiallyhousing programs was very limited due to unattractively low interest rates.Also, inadequate availability of public land required for urban extension,and capacity constraints in the local construction and construction materialindustry, had a negative impact on attempts to cope with urban problems.

1.04 GOM has now prepared the basis for the 1978-82 Development Plan.This plan is proposed to include a considerable urban development programwhich provides for upgrading the housing of about 500,000 urban low-incomefamilies and for constructing more than 300,000 new urban housing units.This program is guided by the basic concept of preserving and better utilizing

existing urban resources and reflects a remarkable reorientation in plan-ning and technical approaches to urban development. Many technical conceptshave been introduced which aim at lowering the cost of housing constructionand urban infrastructure. But the proposed urban development program inthe 1978-82 Plan which addresses only some of the most pressing problems ofMorocco's cities requires funds which are enormous for the national budget.It îs proposed to develop special financing mechanisms in tbte formi of revolv-ing funds for urban land purchase and development, as well aE for low-coqthousing construction. GOM realizes the need to improve recovery of urbandevelopment costs to ensure successful operation of these revolving funds.Also, the need for reforms in pricing for the provision and maintenanceurban services is widely accepted. The combined effect of reducing capitalrequirements for urban development, and improved recovery of urban developmentcosts will establish affordability and replicability in time. But the adjust-ment process will have to be gradual to ensure acceptability and to minimizedistortions in the country's urban sector. In the meantime the problems ofMorocco's cities will further aggravate causing extreme social hardship inmany urban areas. The Government will need substantial financial assistanceand continuous encouragement during this difficult transition period.

1.05 Organizational arrangements for urban development planning havechanged over time. Since the early 1970s GOM has tried to improve the in-stitutional set-up for urban planning and administration. But the processis slow and many inefficiencies continue to exist. Recognizing the need forreforms of policies and procedures in the area of urban development, GOMhas initiated efforts to develop a new organizational framework for copingwith the problems of Morocco's cities. The decision to establish in 1973 aMinistry of Urban Development, Housing, Tourism and Environment, was a soundfirst step towards achieving a workable arrangement for a coordinated approachto urban housing and land development. But the Ministry was plagued by short-ages of qualified personnel and budget constraints, and was only inadequatelyfulfilling its intended role in guiding urban development. As one of theresults of the September 1977 Government reshuffle, a new Ministry of Housingand Regional Development has been established. This Ministry is being organ-ized to more effectively address urban problems. GOM has become increasinglyaware that urgent and drastic actions are required if the most pressingurban problems are to be dealt with expeditiously. For this reason GOM hasapproached the Bank with a request for assistance in preparing effective andworkable solutions to Morocco's urban problems, and to help financing projectsaimed at improving the living conditions of the urban poor.

1.06 Rabat, Morocco's capital city and seat of the Government, waschosen as site for the proposed project for essentially two reasons. Itwas considered mandatory to prepare the first Bank supported urban develop-ment project in close and continuous contact with the Government adminstra-tion. Because decision-making in the urban context is highly concentratedin central government and regional mechanisms for urban planning and coor-dination are still inadequate, and because the project would be multi-sectoral requiring participation of many agencies in preparation, there

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would have been a considerable risk of time consuming preparation if

another urban area had been chosen. The other reason for selecting Rabat

was the fact that a development plan has been established for Rabat as

first urban area in Morocco (para. 2.06). On the basis of this plan the

structural problems of the city and the underlying causes had already

been identified and rational project concepts could be developed to most

effectively address these problems. In addition, Rabat has many of the

problems which are characteristic of most Moroccan cities, such as housing

shortage, unemployment and inadequate services. Under these conditions,

Rabat appeared an ideal locale for a pilot urban development project.

Il. RABAT-SALE, THE URBAN SETTING, PROBLEMS AND ISSUES

2.01 The Prefecture of Rabat-Sale with an area of 2,125 sq. km has as

its nucleus the conurbation of Rabat-Sale which extends over an area of about

55 sq. km. Situated on the Atlantic coast Rabat and Sale are twin cities

which are separated by the Bou Regreg River (map IBMD 13050). Both citiesare well over 700 years old. In 1912 Rabat covered an area of 67 ha. and had

a population of roughly 22,000. By 1921 Rabat had 31,000 and Sale 24,000inhabitants, which had increased by 1960 to 228,000 and 76,000, respectively.

During the last population census in 1971 a population of 641,700 was counted

in the Prefecture. Out of this population, 82.6% lived in Rabat and Sale with

375,000 and 156,000 inhabitants, respectively. Today's population is esti-mated at 495,000 for Rabat and 230,000 for Sale. These population increases

reflect a natural growth rate of 2.6% per year, and an inmigration rate of

3.7%. Rabat-Sale's population is expected to have reached 1.2 m by 1985.

2.02 The economy of both cities, is based on secondary and tertiary

sector activities. But secondary sector activities have declined since

Sale's port was closed. Neighboring Casablanca and Kenitra, both with ports,

have assumed the lead in the industrial sector along the Atlantic coast.

Rabat as administrative center of the country has continually attractedmigrants from the rural area in such numbers that it has become impossible to

provide enough employment opportunities. Out of the estimated 12,500 commer-

cial and industrial enterprises in the Prefecture only 450 have more than10 employees. There are only about 300 industrial establishments. A sector

survey in 1971 revealed that 56% of the labor force worked in the tertiary

sector, to a large extent in the administration, 21% in the commercial, and

23% in the industrial sectors. In mid 1977 unemployment in urban Rabatwas estimated at 12.4% of the labor force. There are sometimes considerable

differences in unemployment rates from one municipal ward to another. Un-employment among female household heads is especially high and may be as

much as 75% of the jobless in certain areas.

2.03 Both cities have old centers, the medinas, which are densely popu-

lated quarters with often deteriorating housing, narrow streets and archaic

services provisions. The absorptive capacity of the medinas was exhausteda long time ago, and inmigrating population started to settle in the out-

skirts of Rabat and Sale. About 27% of Rabat-Sale's population lives in

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squatter settlements, more than half of which are slums in their worst con-

dition; 17% in the medinas, mostly in deteriorating dwelling units; 15% in

apartments, and slightly over 40% in solidly built one to three story houses.

Existing housing stock in Rabat-Sale is estimated dt 144,000 units. Current

housing demand is of the order of 50,000 of which an estimated 42,000 repre-

sent demand for low cost housing. Based on population growth trends in the

Prefecture, housing demand is expected to increase by about 8,000 units

annually. During the 1973-1977 Development Plan period about 13,000 housing

units have been built; 4,300 of these units were built under the social hous-

ing program which reflects the lowest cost solution to housing currently

applied in Morocco. But at US$5,000 the costs of these units are still so

high that they are not affordable by more than 50% of Rabat-Sale's popula-

tion on average, and by more than 80% of the population in the Prefecture's

squatter settlements.

2.04 In the urbanized area of Rabat-Sale, there are three extensive

agglomerations of squatter settlements, i.e., in the quarter of Yacoub el

Mansoor and in the 7th Municipal Ward of Rabat, and the Ville Neuve of Sale.

These squatter settlements have partially long histories, and their initial

establishment as groups of tents housing tribal groups dates as far back as

1900 for Douar Doum, a squatter settlement in the 7th Municipal Ward. While

community facilities are by and large adequately available in Rabat and Sale

as a whole, they are far from sufficiently available in these squatter settle-

ments. This applies particularly to elementary schools, health care installa-

tions, and general community serv:ices, such as garbage collection and fire

fighting.

2.05 The Prefecture of Rabat-Sale is headed by a Governor. The Governor

represents the central government within his jurisdiction; he is appointed

by the King and is hierarchially under the Ministry of Interior which super-

vises and coordinates local government activities. The Governor is respon-

sible for the coordination of the activities of all government agencies

operating in the Prefecture; at the same time he is directly responsible

for the administration of the PreEecture's principal city, Rabat. Through

this arrangement, the Ministry of Interior exercises direct control over the

affairs of Rabat. There are also elected institutions of government in

Rabat and Sale, the municipal councils. These councils were established in1960 and played only a minor role in dealing with the cities' affairs formany years. But recently, new legislation has been enacted to increase thecouncils' role in city management. As a result of the 1976 municipal elec-

tions, politicians who are responsive to the social and economic problems of

the urban poor, have been appointed as members of Rabat's municipal council.

First actions of the newly elected council demonstrate strong determination

to attack Rabat's urban problems, particularly in the housing and employment

sectors. But Rabat is not in a position to financially and organizationally

cope with its problems, and has encountered increasing difficulties in main-

taining levels of efficiency in administration, and in the provision ofservices because of severe difficulties in attracting qualified staff, limited

financial resources and rapidly increasing demand for services.

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2.06 The first attempt by the Moroccan administration to plan and pro-gram for the orderly development of urban areas in the country is a metro-politan development plan (schema directeur d'amenagement et d'urbanisme) forRabat-Sale which was prepared in the early 1970s. As a first experience in

the field of comprehensive urban planning, the plan has several shortcomings.During plan preparation, housing shortages and unemployment were identified

as main problems plaguing the metropolitan area, but there are inadequateprovisions in the plan to deal with them.

III. PROJECT COMPONENTS. COSTS, FINANCING AND BUDGETING

A. Project Objectives and Scope

3.01 The proposed project should be seen as representing the firstimportant stage in the Bank's ongoing dialogue with GOM over urban develop-ment, especially housing problems. While it is realized that several of theexisting policies, practices and procedures in urban development in Moroccoare not adequate to meet demand effectively, it is recommended that thisfirst Bank supported urban development project be devoted to demonstratingsolutions to some of the most difficult problems in urban development. Thisincludes technical concepts of and administrative arrangements for upgrading

the living conditions of urban low income groups. For other problems, notablyhousing finance, gradual adjustments should be sought to minimize the risk ofmarket distortion and of exhausting GOM's absorptive capacity. To these endsthe proposed project has a two-fold objective:

(a) to introduce low-cost urban upgrading, infrastructureand housing concepts which would ensure affordabilityand incorporate improved cost recovery. This will enableGOM to initiate country-wide programs to more effectivelytackle already serious urban housing problems, and to meetsocial services and infrastructure requirements of urbanlow income groups; and

(b) to deal with structural problems in Rabat's 7th MunicipalWard which are found in the housing, infrastructure, socialservices and employment sectors.

In addition to these basic project goals, measures are proposed to improveGOM's planning and implementation capabilities for urban upgrading and devel-opment programs, and to reform financing arrangements for such programs. Itis also proposed to establish special measures and organizational arrange-ments for the promotion of labor-intensive urban economic activities, withmain emphasis on developing small scale businesses.

3.02 In specific terms, the project's scope comprises:

(a) upgrading in three squatter settlements with a total popula-tion of about 60,000;

(b) an experimental sites and services/housing scheme for about900 households which will have to be relocated from thesquatter settlements because of upgrading measures;

(c) an employment generation program for the jobless in theproject area;

(d) programs to rehabilitate and upgrade key sewerage and roadinfrastructure, and to improve community services inRabat's 7th Municipal Ward; and

(e) technical assistance in project implementation.

B. Detailed Prolect Description

3.03 The project represents an integrated approach to deal simultaneouslywith upgrading housing, infrastructure and community services in a whole urbandistrict. The 7th Municipal Ward of Rabat (Maps IBRD 13050 and 13051) hasbeen chosen as it contains the highest concentration of squatter settlementsin Rabat. 11,900 dwelling units, housing about 60,000 people, out of about19,000 dwelling units in the whole ward, with an estimated 1977 population ofabout 100,000, are in the three squatter settlements of Douar Doum, DouarMaadid and Douar Hajja. The average 1977 monthly household income in thedouars was US$94 compared with US$132 for the urban sector as a whole. Thethree douars represent different forms and stages of development of spontaneousurban settlements and provide an ideal background for testing urban upgradingconcepts. The area forming the 7th Municipal Ward is presently not included inthe development plan (plan d'amenagement) for Rabat (para. 2.06); a pland'amenagement provides under Moroccan legislation the legal instrument forsetting the development concept for an urban area. Preparation of such a planusually requires several years. Without provision for the development of the7th Ward in Rabat's plan d'aamenagement there is no regulatory instrument toguide and control land use in the project area. But the fact that the projectarea is presently not included in Rabat's plan d'amenagement is not consideredas a problem; an approved zoning plan (plan de zonage) for the area wouldensure that no land use changes could be introduced at any time during orafter project implementations. MHAT has already drafted such a zoning plan;the draft was found satisfactory by the Bank. Official endorsement andissuance of this zoning plan is a condition for loan effectiveness.

3.04 Squatter Upgrading: Planned squatter upgrading includes:

(a) integrated upgrading in Douar Doum (Map IBRD 13054). Existingsite and housing development forms in Douar Doum represent

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the lowest development stage of squatter settlements inRabat. About 50% of housing is of primitive, make-shiftcharacter providing inadequate living space and protectionagainst the elements. Infrastructure and coverage by commu-nity services are poor. Presently, there is a population ofabout 17,500 in Douar Doum representing 3,600 householdswhich squat on 3,210 plots in an area of 24 ha. The averagemonthly household income (early 1977) in Douar Doum is aboutUS$85. Households to be relocated because they are squattingin the right-of-way of planned infrastructure or becauye theyare squatting on extremely small plots (less than 25 m ),estimated at about 780 or 22% of all households in Douar Doum,will be compensated for lost property and resettled in aplanned experimental sites and services scheme, next to DouarDoum (para. 3.06);

(b) integrated upgrading in Douar Maadid where existing siteand housing development forms are more advanced than inDouar Doum. Only about 20% of housing is of primitive char-acter, the rest has solid walls. But roofing and internal in-stallations are widely inadequate. There is some infrastruc-ture in a f ew areas, largely installed through self-help, butoverall, infrastructure and community services demand re-mains to be satisfied. Today's population of Douar Maadidis about 22,000, representing 4,500 households which squaton 3,220 plots in an area of 20 ha. The average monthlyhousehold income (early 1977) in Douar Maadid is about US$90.Only limited household relocation will be required (about 100families), these families will also be resettled in theexperimental sites and services scheme at La Butte;

(c) integrated squatter upgrading in Douar Hajja where existingsites and housing development forms are most advanced in com-parison with Douar Doum and Douar Maadid. Almost 95% of allhousing is solidly built but infrastructure and communityservices coverage remain inadequate. Also, existing housingneeds improvement. Douar Hajja's 1977 population is about19,500, representing 3,800 households which squat on 2,000plots in an area of 19 ha. The average monthly householdincome (early 1977) in Douar Hajja is about US$114. About 20households will have to be relocated in the experimentalsites and services scheme at La Butte.

3.05 The proposed squatter upgrading in all three douars includes re-habilitation and extension of infrastructure 1/, improvement and expansion

1/ Detailed information on this and all subsequent technical project provi-sions is given in Annex 1.

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of commercial installations, home improvements through self-help with con-struction materials and equipment: which will be provided under the project,and provision of community facilities. The design for planned squatterupgrading measures is being completed by consultants (para. 5.03). Theallocated plot costs of these measures, US$1,150 on average, will be affordableby more than 90% of the population living in the three douars (para. 6.13).Plotholders in each squatter settlement will be given secure tenure throughpublic leaseholds which will be transformed into private freeholds once theplot costs are paid in full (para. 6.03). However, tenure arrangements can beformalized only after the land on which the squatter settlements are locatedhas been acquired from its present owners. Douar Doum belongs to GOM, andtenure arrangements for plotholders can be formalized. But for Douar Maadidand Douar Hajja such formalization is presently not possible pending thefinalization of purchase arrangements which have already been initiated byGOM. During loan negotiations assurances were obtained that all land in thesquatter settlements be acquired or expropriated I/ expeditiously. Governmentpossession of the land in the squatter settlements under provisional terms andconditions is a condition for loan effectiveness.

3.06 Experimental Sites and Services/Rousing Scheme. Between thesquatter settlements Douar Doum and Douar Hajja, there is a presently unutil-ized terrain of 18.5 ha, called La Butte (Map IBRD 13051). GOM has recentlyacquired this terrain. It is proposed to utilize an area of 12 ha. on LaButte to settle the 900 families to be relocated from the squatter settlementsbecause of upgrading measures. I]n preparing the site layout scheme, severalalternatives and combinations of plot cluster forms, infrastructure andcommunity facilities design, and commercial installations were considered andcost-effectiveness analyses carried out to ensure identification of the leastcost-maximum effective site layout form and technical concepts (Map IBRD13052). This resulted in site development costs which are about 25% less thancommonly experienced urban site development costs in Morocco. Three types ofresidential plots will be available. For each plot type, different core unitconcepts were considered, and the least cost solutions identified. Thisincluded functional and structural design as well as material and constructionmethod options. Two different core unit prototypes were designed such thatthey are horizontally and vertically extendable. The associated unit costsare about 50% less than commonly experienced core unit costs in ongoing urban

1/ Land acquisition can take a long time if no early purchase agreement canbe reached between the Government and the present land owners. But underMoroccan legislation the Government can expropriate such land if no earlypurchase agreement can be reached. Under such a procedure the Govern-ment declares the land as of "utilitee publique", i.e. in the public'sinterest, and takes possession of the land under provisional terms andconditions (envoi en possession provisoire) until a final purchaseagreement has been reached. Once the Govermment would have takenpossession, the land could be developed as provided for under the project.

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housing programs in Morocco. All plots will be provided with a contrac-tor-built core unit. The costs of plots with contractor-built core units,US$2,150 on average, will be affordable by more than 90% of the populationliving in the three settlements (para. 6.13). Eàch relocated household willbe given a leasehold of the assigned plot on La Butte until land and develop-ment costs have been paid in full, when a freehold title will be issued (para.6.03). Displaced households will be given assistance in resettling; they willbe provided with construction materials and equipment for home extensions inself-help construction.

3.07 Employment Generation Program. Observed unemployment in the proj-ect area is 24% of the labor force on average. With 31% Douar Doum has thehighest rate. Overall unemployment in Rabat is estimated at 12.4%. It isplanned to bring by 1980 the unemployment rate in the project area in linewith the overall unemployment rate for Rabat. This implies a need to createabout 2,500 new jobs in the project area. To this end essentially two meas-ures are proposed: promotion and development of labor-intensive commercial/industrial activities, and market-demand related training and/or retrainingfor the jobless. Development in the project area of such labor-intensiveactivities would be promoted through the provision of developed land andcredit facilities (line of credit) for building construction, equipment pur-chase, and working capital. Although emphasis will be on the creation ofjob opportunities in the project area through any kind of labor-intensivecommercial/industrial activities, special attention will be given to thedevelopment of small scale businesses, which are the predominant form of urbaneconomic activities in Morocco. A small-scale business promotion unit will beestablished (para. 4.07). This unit will provide technical assistance in mar-keting, production aad management to businesses in the project area. Severalenterprises in Rabat have been identified as being interested in moving to aplanned industrial estate of Il ha. in the project area (Map IBRD 13051):this site remains to be acquired by GOM. Government possession of this landunder provisional terms and conditions (para. 3.05) is a condition for loaneffectiveness.

3.08 Arrangements for vocational training and skills upgrading will beprovided. A vocational training center will be established to serve training/skills upgrading needs of men and women alike. This training center will havea capacity to accommodate 360 trainees. A separate center for education andwork will be established to provide employment skills to young women who haveeither never attended school or who have dropped out. The center will accom-modate 250 trainees. Combined with this center, there will be a day carenursery with a capacity for 400 children to enable mothers who are householdheads to leave their children during the day while at work. The nursery willinclude a facility for advising mothers on child care with special services tomonitor child development.

3.09 Community Services Equipment. Garbage disposal is a particularproblem in the project area because existing equipment for garbage collectionis inadequate. As a result, substantial deposits of garbage frequentlyform in the squatter settlements and attract disease carrying insects andvermin. Improved garbage collection procedures will. be established and the

- 13 -

necessary equipment procured under the project. Fire fighting and ambulance

equipment is inadequately available in the project area. Special vehicles,

including ancillary equipment, will be provided under the project to supple-

ment the existing vehicle fleet to better meet basic service requirements.

During loan negotiations agreement was reached that this equipment be sta-

tioned and exclusively used in the 7th Municipal Ward.

3.10 Technical Assistance will be provided in the fields of small-scale

business development, vocational training, urban upgrading planning, prepara-

tion of housing finance reforms, and municipal equipment operation and mainte-

nance (para. 5.07).

C. Project Cost Estimate

3.11 The project is estimated to cost US$37.62 m, including contingen-

cies. The foreign costs component are estimated at US$15.55 m. Local costs

are estimated at US$22.07 m, including an amount of US$5.33 m (14.2% of the

estimated total project costs) in taxes and duties. The base cost estimate

is in October 1977 prices. The sources for the cost estimates and physical

contingency allowances are outlined in Table III-1. Technical assistance

has been costed at US$4,850 per man-month on average, which includes all

expected incidental expenses, such as housing, offices and transport. Price

contingencies have been calculated by allowing for equipment 8% in 1977, 1978

and 1979, 7.5% in 1980 and 7% in 1981, and for civil works 10% in 1977, 1978

and 1979, 9% in 1980 and 8% in 1981. For project management, the small-scale

business promotion unit, consultant services and technical assistance annual

price increases of 10% have been assumed over the entire project period. A

summary cost estimate is given in Table III-2, and a detailed cost estimate

is given in Annex 2. Cost details on individual project items are given in

paras. 3.12-3.16.

RABAT URBAN DEVELOPMENT PROJECT

TABLE III-1: SOURCES FOR COST ESTIMATES AND PHYSICAL CONTINGENCY ALLOWANCES

PHYSICAL CONTINGENCYITEM PREPARING AGENCY STATUS OF PREPARATION ALLOWANCE

Land MHAT Final Estimate NoneResettlement MîHAT Final Estimate NoneSite Preparation MHAT Preliminary Engineering 15%Off-Site Infrastructure MHAT/RED Preliminary Engineering 15%On-Site Infrastructure MHAT/RED Preliminary Engineering (Water, Electricity-15%

(Sewerage, Roads-20%)IConmmunity Facilities MASA, MHAT, MSP. MEN Preliminary Design (Construction-15%)

(Equipment-10%)Core Unit Construction MHAT Final Design 10%Construction Materials and Equipment Mission Final Estimate (Materials-None)

(Equipment-10%)Commercial Installations MHAT Preliminary Design 10%Small-Scale Business Development Consultants Final Estimate None

Community Services Equipment Municipality of Rabat Final Estimate NoneProject Management Mission Final Estimate 10%Small-Scale Business Promotion Unit Mission Final Estimate NoneConsultant Services Mission Final Estimate 10%

Technical Assistance Mission Final Estimate 10%

RABAT URBAN DEVELOPMENT PROJECT

TABLE III-1: SUMMARY COST ESTIMATE

DIRHAMS (thousands) --- US$ (millions)-------

Local Foreign Total Local Foreign TotalITEM Ccsts Costs Costs 8osts Costs Costs

1. Squatter Upgrading- Douar Doum 12,936.4 11,323.7 24,260.1 2.94 2.57 5.51- Douar Hajja 13,547.8 5,679.5 19,227.3 3.09 1.29 4.38- Douar Maadid 12,960.7 6,359.4 19,320.1 2.94 1.45 4.39

Sub-Total 39,444.9 23,362.6 62,807.5 8.97 5.31 14.28

2. Experimental Sites andServices;Housing Scheme 14,781.5 8,797.9 23,579.4 3.36 2.00 5.36

3. Employment Generation .

Program 25,000.1 16,188.6 41,188.7 5.68 3.68 9.36

4. Community ServicesEquipment 715.6 3,290.4 4,006.0 0.16 0.75 0.91

5. Technical Assistance 468.0 1,872.0 2,340.0 0.11 0.42 0.53

BASE COST ESTIMATE 80,410.1 53,511.5 133,921.6 18.28 12.16 30.44

Contingencies

Physical 5,819.7 5,245.6 11,065.3 1.32 1.19 2.51Price 10,842.7 9,686.3 20,529.0 2.47 2.20 4.67

TOTAL EXPECTED PROJECT COSTS 97,072.5 68,443.4 165,515.9 22.07 15.55 37.62

3.12 Costo of Squatter Upgrading

A. DOvaB DaVtV B. DOUAR BWJA C. DOA MMUDrD

POyetosi Prins pnysical Pries PhysÊsal Prine

Ites Bse c«tas CnntigenTsies ngnt a Bae «sts s Total C«rts Base C«nts Contint ces oe Total Cosets

---------------- DrBM OO)----_-_- -- IH ---- _------------ -- -- DRASOCs-------_- ----- _------ --------------------- -- DRBAK (;06-____________

1. Lsd - - - 7,200.0 _ - 7,200.0 5,580.0 - - 51580.0

2. Off-Site Thfrastrnotnrs2.1 Se-erago 320.8 48.1 60.9 429.8 517.7 77.7 98.2 693.6 557.6 83.6 105.8 747.0

2.2 Posas 314.4 47.2 59.7 421.3 1,463.0 219.4 277.6 1,960.0 1,463.o 219.5 277.6 1,960.1

2.3 EleotriCity 953.6 143.0 180.9 1.277.5 119.2 17.9 22.6 159.7 476.9 71.5 90-5 638.9

SBb-Tota1 2 1,588.8 238.3 301.5 2,128.6 2,099.9 315.0 398.4 2,813.3 2,497.5 374.6 473.9 3,346.0

3. On-Site lIfrest-ruture3.1 Water Rupply 2,309.3 346.4 435.5 3,091.2 754.9 113.2 190.1 1,058.2 814.5 122.2 262.3

1e199.0

3.2 Bes5s1e171e.9 235.0 231.3 1,641.o 439.i 87.8 115.4 642.3 870.0 174.0 292.3 1,336.3

3.3 Rosds, Fostpstho 4,566.8 913.4 898.8 6,379.0 2,570.7 514.1 675.6 3,760.4 190.6 381l 64.1 292.8

3.4 Bleotrioity 2.961.2 444.2 558.5 3,963.9 _ _ 1062.8 159.4 342.2 1,564.4

8ab-Total 3 11,012.2 1,939.0 2,124.0 15,O75.2 3,764.7 715.1 981.1 5,460.9 2,937.9 493.7 960.9 4,392.5

4. Resettleasot 312.0 - - 312.0 8.0 - - 8.0 40.o - - l40.o

5. Cnstrnotion Muterisls 1,873.6 19.4 222.4 2,i15.4 1,601.3 16.1 185.3 1,802.7 3,104.5 31.5 361.3 3,497.3

ene Equipsent

6. Csernool Isstaîlsons 2,160.0 216. 518.2 2,089.2 72.0 7.2 17.1 96.3 648.o 64.8 154.o 866.8

7. Coessunity FsoiltiOes7.1 Sohools 2,529.6 364.4 639.9 3,533.9 2,501.1 360.3 632.7 3,484.1 2,520.1 363.0 637.5 3,520.6

7.2 Reslth FPsolitiBe 520,0 67.8 124.5 712.3 520.0 67.7 124.6 712.3 520.0 67.8 124.6 712.4

7.3 Coemnoity Cesters 1,816.5 257.8 455.8 2,530.1 _ - - _ _

Sgb-Total 7 4,866.1 690.o 1,220.2 6,776.3 3,021.1 428.o 757.3 4,2o6.4 3,o4o.i 430.8 76201 4,233.0

8. Cosanitant OSont os8.1 csdAstrel turvey 210.0 21.0 19.6 250.6 350.0 35.0 32.7 417.7 271.2 27.1 25.4 323.7

8.2 Dotailed Ergitsering 552.3 55.2 30.4 637.9 265.7 26.6 14.6 306.9 248.5 24.9 13.7 287.1

S.M40tl 8 762.3 76.2 50.0 888.5 615.7 61.6 47.3 724.6 519.7 52.0 39.1 610.ô

9. Prn2eot iesaeeot 1,685.1 _68.5 334.1 2,187.7 844.6 84.5 167.4 1.096.5 952.4 95.2 i88,8 1.?36.4

TOTAL 24,260.1 3,347.4 4,765.4 32,372.9 19,227.3 1,627.5 2,553.9 23,408.7 19,320.1 1,542.6 2,940.1 23,802.8

- 17 -

3.13 Costs of Experimental Sites and Services/Housing Scheme

Physical PriceItem Base Costs Contingencies Contingencies Total Costs

-------------------- DIRHAMS (000s) -----------------------

1. Land 3,360.0 - - 3,360.0

2. Site Preparation 360.0 54.0 28.1 442.1

3. Off-Site Infrastructure3.1 Sewerage 392.6 58.9 74.5 526.03.2 Roads 1,310.0 196.5 248.6 1,755.13.3 Electricity 715.2 107.3 135.7 958.2

Sub-Total 3 2,417.8 362.7 458.8 3,239.3

4. On-Site Infrastructure4.1 Water Supply 562.7 84.4 71.8 718.94.2 Sewerage 449.4 89.9 59.9 599.24.3 Roads, Footpaths 680.1 136.0 90.6 906.74.4 Electricity 1,128.7 169.3 144.1 1,442.1

Sub-Total 4 2,820.9 479.6 366.4 3,666.9

5. Rousing Core Units 7,120.0 712.0 971.2 8,803.2

6. Construction Materials 1,346.7 13.7 157.5 1,517.9and Equipment

7. Commercial Installations 864.0 86.4 205.3 1,155.7

8. Community Facilities8.1 Schools 2,466.2 355.7 624.3 3,446.28.2 Health Facilities 520.0 67.7 124.6 712.38.3 Community Centers 472.5 66.2 117.7 656.4

Sub-Total 8 3,458.7 489.6 866.6 4,814.9

9. Consultant Services9.1 Cadastral Survey 245.0 24.5 22.9 292.49.2 Detailed Engineering 221.7 22.2 12.2 256.1

Sub-Total 9 466.7 46.7 35.1 548.5

10. Project Management 1,364.6 136.4/ 270.5 1,771.5

TOTAL 23,579.4 2,381.1 3,359.5 29,320.0

- 18 -

3.14 Costs of Employment Generation Program

Physical PriceItem Base Costs Contingencies Contingencies Total Costs

---------------------- DIRHAMS (0OOs) ---------------------

1. Land 2,880.0 - - 2,880.0

2. Site Preparation 1,584.0 237.6 123.9 1,945.5

3. Off-Site Infrastructure3.1 Electricity 119.2 17.9 22.6 159.7

4. On-Site Infrastructure4.1 Water Supply 363.8 54.6 37.2 455.64.2 Sewerage 373.5 74.7 39.9 488.14.3 Roads 646.6 129.3 69.1 845.04.4 Electricity 1,198.2 179.7 122.6 1,500.5

Sub-Total 4. 2,582.1 438.3 268.8 3,289.2

5. Community Facilities5.1 Center for Education

and Work for YoungWomen 3,234.4 466.7 819.0 4,520.1

5.2 Training Center 3,927.8 552.4 980.5 5,460.7

Sub-Total 5 7,162.2 1,019.1 1,799.5 9,980.8

6. Consultant Services6.1 Cadastral Survey 140.0 14.0 13.1 167.16.2 Detailed Engineering 110.8 11.0 6.1 127.9

Sub-Total 6 250.8 25.0 19.2 295.0

7. Project Management 887.0 88.8 175.8 1,151.6

8. Business Development8.1 Plot Development 360.0 36.0 86.7 482.78.2 Construction 8,775.0 - 1,921.7 10,696.78.3 Equipment 5,750.0 - 1,150.0 6,900.08.4 Working Capital 9,000.0 - - 9,000.0

Sub-Total 8 23,885.0 36.0 :3,158.4 27,079.4

9. Small Scale BusinessPromotion Unit 1,838.4 - 362.2 2,200.6

TOTAL A1.1?.±z 1ix§Li7 5*=3=.=4 = 1A

-- 19 -

3.15 Costs of Community Services Equipment and Depot

Physical Price

Item Base Cost Contingencies Contingencies Total Costs

---------------------- DIRHAMS (000s) ------------------…--

Municipal Service Vehiclesand Auxiliary Equipment 810.0 - 94.0 904.0

Garbage Collection Trucks 1,200.0 - 139.2 1,339.2

Garbage Collection Bins 360.0 - 41.8 401.8

Garbage Collection Carts(Manual) 36.0 _ 4.2 40.2

Garbage Collection Carts(Mechanical) 160.0 - 18.5 178.5

Fire Engines 440.0 - 51.0 491.0

Ambulances 300.0 - 34.8 334.8

Depot 700.0 70.0 79.3 849.3

TOTAL 4,006.0 70.0 462.8 4,538.8

3.16 Costs of Technical Assistance

Physical PriceItem Base Cost Contingencies Contingencies Total Costs

---------------------- DIRHAMS (000s) -----------------------

Financial Analyst 1,024.0 102.4 226.4 1,352.8

Housing Finance Experts 256.0 25.6 56.1 337.7

Small Scale Business 420.0 42.0 92.9 554.9Promotion Expert

Vocational Training Expert 360.0 36.0 79.6 475.6

Equipment Maintenance Expert 280.0 28.0 61.9 369.9

TOTAL 2.340.0 234.0 516.9 3,090.9

- 20 -

D. Project Financing

3.17 The proposed Bank loan for the Rabat Urban Development Projectwill be US$18.0 million. The loan will be made to GOM and will finance 56%of the total project cost, net of taxes, implying 100% financing of thedirect and indirect foreign exchange cost (US$15.55 m) and 11% of the localcost (US$2.45 m) of the project. With the low foreign exchange cost propor-tion of the project's cost, local cost financing is recommended as the proj-ect will be of key importance in the sense of contributing substantially tothe achievement of a major government goal, i.e., improving the living con-ditions of the country's poor. As a first Bank assisted approach to mitigat-ing urban poverty, the project should receive a reasonably significant Bankcontribution to its costs. The Bank loan will bear 7.45% interest and willbe amortized over 20 years, including a grace period of 5 years. Privateentrepreneurs will provide a total of US$2.95 m in equity financing. Thebalance of the total expected project costs will be financed by GOM. Outof this amount GOM vill allocate budgets, supplemented by loan proceeds tothe different ministries under whose domain the individual project items willfall (para. 3.18). The project financing plan is shown in Table III-3.

RABAT URBAN DEVELOPMENT PROJECT

TABLE III-3: PROJECT FINANCING PLAN(Dirhams 000s)

----------- Sources of FundS---------

Project Component Estimated Costs GOM Equity Financing IBRD

1. Squatter Upgrading-Douar Doum 32,372.9 14,637.4 - 17,735.5-Douar Hajja 23,408.7 14,375.2 - 9,033.5-Douar Maadid 23,802.8 13,664.5 - 10,138.3

Subtotal 79,584.4 42,677.1 - 36,907.3

2. Experimental Sites andServices/Housing Scheme 29,320.0 14,996.0 - 14,324.0

3. Employment GenerationProgram 48,981.8 14,646.5 12,950.0 21,385.3

4. Community ServicesEquipment 4,538.8 734.2 - 3,804.6

5. Technical Assistance 3,090.9 312.1 - 2,778.8

TOTAL 165,515.9 73.,365.9 12Â950.0 79 200

- 21 -

E. Project Budgeting and Loan Application

3.18 GOM will allocate budgets and proceeds of the loan, as shown inTable 111-4, to following goverument agencies:-

(a) the Ministere de l'Habitat et de l'Amenagement du Territoire(MHAT) for financing of consultant services, part oftechnical assistance, project management, the Small-ScaleBusiness Promotion Unit, land acquisition,squatter upgrading,off-site infrastructure rehabilitation and extension,the Experimental Sites and Services/Housing scheme, andpre-elementary schools;

(b) the Ministere de l'Education Nationale (MEN) for financingthe construction and equipping of primary schools;

(c) the Ministere de la Sante Publique (MSP) for financing theconstruction and equipping of dispensaries;

(d) the Ministere des Finances (MF) for financing the lineof credit for businesses in the project area, communityservices equipment, and part of technical assistance;

(e) the Ministere de Travail et de la Formation Professinelle(MTFP) for financing the construction and equipping ofthe vocational training center, and part of technicalassistance;

(f) the Ministere des Affaires Sociales et de l'Artisanat(MASA) for financing the construction and equipping ofthe Young Women's Center for education and work, includingday care nursery; and

(g) the Ministere de la Jeunesse et des Sports (MJS) forfinancing of construction and equipping of youth centers.

3.19 There will be a special convention between GOM and the Municipalityunder which GOM will undertake to prefinance an amount of US$3.8 m, repre-senting the costs of community services equipment, rehabilitation and exten-sion of off-site infrastructure, including primary roads, trunk sewers, andelectricity supply installations, as well as technical assistance. This willinclude US$2.45 m of the loan proceeds. GOM will arrange through the ProjectImplementation Organization (para. 4.02) for the implementation/procurement ofthese prefinanced project items. The Municipality will repay the prefinancedcosts at 9% interest over 15 years, including a grace period of four years.During loan negotiations the proposed terms and conditions of the GOM-Munici-pality convention were reviewed and agreed upon. As a condition for loaneffectiveness both parties shall have entered into the convention.

RABAT URBAN DEVELOPMENT PROJECT

Table III-4; PROJECT BUDGETING PLAN(DH thousands)

EstimatedProject Component Cost Budget

MHAT MEN MSP MF MTFP lASA EUS1. Squatter Upgrading

---Douar Doum 32,372.9 12,170.311 1,288.6 217.7 - - - 960.813,702.1/- 1,969.5 494.6 - - - 1,569.3

--Douar Hajja 23,408.7 12,868.9 1,288.6 217.7 - - - -6,569.3 1,969.6 494.6 - - --

--Douar Maadîd 23,802.8 12,158.2 1,288.6 217.7 - - - -________ 7,674.1 1,969.5 494.7 - - - -

Subtotal 79,584.4 37,197.4 3,865.8 653.1 - - - 960.827,945.5 5,908.6 1,483.9 - - - 1,569.3

2. Experimental Sitesand Services/Housing 29,320.0 13,248.4 1,288.6 217.6 - - - 241.4Schemne 11,444.7 1,969.6 494.7 - - - 415.0

3. Employment Genera- 36,031.8/3 8,430.0 - - 2,401.5 2,030.3 1,784.7 -tion Program 3,491.6 - - 11,727.9 3,430.4 2,735.4 -

4. Community ServicesEquipment 4,538.8 - - - 734.2 - - _

5. Technical Assistance 3,090.9 193.7 0 6370.8 47.6 - _1,714.0 636.8 428.0 --

TOTAL 152,565.9 59,069.5 5,154.4 870.7 3,206.5 2,077.9 1,784.7 1,202.244,595.8 7,878.2 1,978.6 16,169.3 3,858.4 2,735.4 1,984.3

/ First line entries represent required GOM budget allocations./2 Second line entries represent allocated loan proceeds.- Excludes equity financing.

- 23 -

IV. EXECUTING AGENCIES

4.01 Seven ministries, the Municipality of Rabat, and the Banque CentralePopulaire, BCP (para. 4.14), will be involved in project implementation. Thisimplies a complex institutional background for the project, and experiencewith multi-sectoral urban development projects is limited in Morocco. Withthe exception of MF, MEN, and MSP who have adequate staff and well establishedarrangements and procedures to fulfill their respectively roles in projectimplementation effectively, all other government agencies often do not have thetechnical expertise and required staff to implement satisfactorily projectitems which will fall into their respective domaines. In the past, this hasresulted in problems manifested by implementation delays, poor workmanship andcost overruns due to inappropriate supervision arrangements. Another problemis the need for a concerted effort by all agencies which is essential toensure successful project implementation within the established time frame.It is realized that project implementation will pose heavy demand for co-ordination and supervision on GOM.

A. Project Implementation Organization

4.02 All agencies have agreed that the implementation of project itemswhich fall into their respective domaines be implemented under the supervisionof a project directorate. They insisted, however, that they maintain fullcontrol over their respective project budgets (Table III-4). This has led tothe formulation of a project implementation organization which will ensureparticipation of each agency in project implementation, and yet establish acompetent and coordinated project management. The scheme of the ProjectImplementation Organization is shown in Chart IBRD 18188. A Project SteeringCommittee will be established wîth the Governor of the Prefecture of Rabat-Sale as chairman. The Governor's special role in city management (para. 2.05)and his standing in the government hierarchy will ensure effective leadershipin the Project Steering Committee. The Committee will be composed such thateach agency with responsibilities over project items will be adequatelyrepresented. To this effect the Committee will include the regional delegatesof all government agencies which will be involved in the project, delegatesof the Municipal Council, notably the council members from the project area,representatives of BCP, the general manager of Rabat's Regie Autonome deDistribution d'Eau et'd'Electricite (RED) 1/, and the City Engineer. ThisSteering Committee will meet periodically and review and set the criteria forproject implementation. Problems which cannot be resoived will be referred toan interministerial project coordination committee, composed of the chiefsecretaries of all ministries involved, for resolution. This committee hasalready been established by GOM and will be convened on demand. GOM intendsto maintain this interministerial committee for all future urban developmentprojects.

1/ Rabat's autonomous corporation for water and electricity distribution.

- 24

KINGDOM OF MOROCCORABAT URBAN DEVELOPMENT PROJECT

PROJECT IMPLEMENTATION ORGANIZATION

Ministères de- Habitat et Aménagement

du territoire- Affaires Sociales et de

l'Artisanat- Education Nationale Govenor of the Interministerial- Jeunesse et des Sports Préfecture Rabat-Salé Project Coordination- Santé Publique Chairman of the Committee- Travail et de la Formation Project Steering Committee

Professionelle- Equipement et de

la Promotion Nationale J

PROJECT STEERING COMMITTEE

Ministère des Finances Regional Delegates in the Préfecture Rabat-SaléBanque CnSpecially Appointed Delegates

Banique Centrale Poplaire InPro

Council Members from Project Area

Ingénieur Municipal,Municipalité de RabatDirecteur, R E D Permanent Secretary Small Scale

of the Project Steering Business PromotionCommittee & Unit

Conseil Municipal Project Director

Ministère

Support de l'HabitatSupport et de l'Amé -Function management du

PROJECT DIRECTORATE Territoire

Control MinistèreFunctioni des Finiances

VVorld Bank - 18188

- 25 -

4.03 A special function in the Project Steering Committee will fallto the municipal council members from the project area. They will concernthemselves with the public re'ations aspects of squatter upgrading and willexplain proposed project measures and cost recovery terms and conditions totheir electorate. This will ensure understanding of the project's objectivesand associated actions in the project area. They will also organize communityself-help arrangements for the construction or improvement of pre-elementaryschools and encourage the formation of household cooperatives for mutualself-help in home improvements. Extensive discussions have already takenplace between the council members and the population in the squatter settle-ments. Also the Governor of the Prefecture has had several contacts withthe local population through his local representatives, the Khaids and theMoqqadems. The population has been made aware of the project, its objectives,concepts and proposed cost recovery mechanisms. The response in the communityhas been enthusiastic; there is a full support of the project with all itsobjectives and concepts within the community.

4.04 The Project Steering Committee will have a permanent secretarywho will be at the same time project director. The Project Director willhead a project directorate which will have its quarters in an administrativecenter to be constructed on La Butte. The Project Directorate will be com-posed of two civil engineers, two architects, two surveyors, eight technicalinspectors, four materials clerks, two accountants, and various support per-sonnel, such as drivers, mechanics, and secretaries. The entire professionalstaff of the Project Directorate will be seconded by MHAT and will be super-vised by the chief secretary of that ministry. The Project Directorate willreceive professional guidance and operational support, particularly in projectmonitoring by a new unit for urban upgrading in MHAT (para. 4.10). TheProject Directorate will be responsible for managing the implementation ofall project items, except small-scale business promotion, vocational train-ing, urban up-grading planning, and housing finance reforms for which otherarrangements are proposed (paras. 4.07 and 4.09-4.13). MASA, MEN, MJS, MSPand MTFP will manage with their own staff the construction and equipping ofprimary schools, dispensaries, vocational training and youth centers under thesupervision of the Project Directorate. This arrangement is acceptable to theBank. The Project Directorate will tender, award and supervise material andequipment supplies, and civil works. It will manage construction materialsdepots and provide technical assistance to households who will construct orimprove their homes in self-help. The Project Directorate will also reviewhome construction and extension plans and issue building permits 1/, whichwill be mandatory and contingent on plans which have been assessed astechnically satisfactory. For the completion of detailed engineering fordifferent project items and for the preparation of cadastral plans and plotdocuments for the land registry for each project site, the Project Directoratehas already hired locally established consultants (para. 5.06).

1/ A function which is normally the responsibility of the Municipality,but for the project area this responsibility will be delegated to theProject Directorate.

- 26 -

4.05 Through its regional delegate in the Project Steering Committee,each ministry will keep control over the implementation of project itemsfalling into its domain. The allocated budgets for different project items

will remain with the respective ministries. Payments to suppliers/contractorswill be made by each ministry on the basis of invoices which have been checkedand endorsed by the Project Director. The Project Directorate will maintain acentral project accounting system to ensure control over the financial statusof the project (para. 5.08). Individual implementation schedules for differentproject items will be established and monitored by the Project Directorate,which will also prepare monthly progress reports.

4.06 Once acquired or expropriated all land in the project area will

be administered by the Service des Domaines, until the title for land canbe transferred to the project beneficiaries (para. 6.03). The Service desDomaines, a branch of the Ministry of Finance, is GOM's agency in chargeof the administration of government owned land and estate. Prefinancedhousing under the project will also be administered by the Service untiltitle transfer (para. 6.03). The Service will prepare and handle leasecontracts with project beneficiaries, issue titles, prepare deeds, and willarrange for legal proceedings in case of defaults in lease payments. Duringloan negotiations the format of proposed lease contracts and proposed organ-izational and staffing arrangements for the administration of such contractswas reviewed and agreed upon. The Service des Domaines will prepare andsubmit to the Bank for approval by September 30, 1978 standard lease con-tracts and details on organizational and procedural arrangements for theiradministration.

4.07 As integral part of the Project Implementation Organization therewill be a business promotion unit under the direction of the Project Steer-ing Committee. As its main function this unit will provide assistance tobusinesses in the project area in marketing, production and management.Emphasis will be on helping small entrepreneurs or cooperatives (see Annex 1,Section G) to get started and/or to improve their business. Consequently theunit will be composed of experts who specialize in small scale business pro-motion. The Unit will comprise three full time members and administrativesupport staff. The professional members of the Unit will include one indus-trial engineer specializing in small scale business/handicraft productionprocesses, one business administration expert specializing in management,particularly financial management, of small scale businesses and cooperatives,and a marketing expert. One of these members will be a financial assistanceexpert to be provided under the project (para. 5.07). In addition to itsbasic mandate, i.e. advising small scale businesses, the Unit will do themarketing for industrial land and commercial installations; it will assistBCP (para. 4.17) in marketing the proposed line of credit to businesses inthe project area, and in the appraisal of credit applications flrom thesebusinesses. There will be a close coordination between the Unit and MTFP toensure that proposed vocational training under the project (para. 4.13) isresponsive to skills requirements of businesses in the project area. The Unitwill also provide professional guidance to the Project Directorate to ensurerequired functionality of industrial/commercial site location and land devel-opment standards, as well as building designs.

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4.08 During loan negotiations the proposed organizational and proce-dural arrangements for the Project Implementation Organization as well as

the proposed terms of reference, the staffing plan and the job qualification

requirements for the Project Directorate and the Business Promotion Unit were

reviewed and agreed upon. The Project Director has already been appointed

and participated in loan negotiations. His qualifications are acceptable

to the Bank. As a condition for loan effectiveness the Project Directorate

shall be operational and staffed with key personnel, be equipped and properly

accommodated. Assurances were obtained that the remaining staff of the Proj-

ect Directorate will be hired by December 31, 1978. Agreement was reached

that the Project Directorate will prepare a detailed project implementation

timetable by May 15, 1978. The Business Promotion Unit will be operational,

equipped and properly accommodated by September 30, 1978.

B. Ministere de l'Habitat et de l'Amenagement du Territoire (MHAT)

4.09 As one of the results of the Government reshuffle in September

1977 MHAT has been established as successor to the previous Ministry of

Urban Development, Housing, Tourism and Environment, MUHTE. It is not yet

possible to give an assessment of MHAT's performance, given that it has been

in existence for a few months only. However, it is probable that MHAT will

be more efficient in dealing with its assigned responsibilities than MUHTE

has been. Unlike MUHTE, MHAT's responsibilities are limited to housing and

regional development programs. MUHTE had responsibilities for Tourism and

Environmental Protection as well, and these diversified responsibilities

have posed serious problems to MUHTE in trying to cope with them. Due to

the limited availability of appropriately trained and experienced staff

(para. 1.05), MUHTE's performance was characterized by inadequate provi-

sions for and coordination of urban development planning. As a result,

MUHTE had a difficult start in fulfilling its role as coordinating agency

in multisectoral urban development planning and project implementation.

GOM became avare of these institutional shortcomings and their implications

for urban sector planning and project implementation. The establishment of

MHAT can be seen as an attempt to improve this situation. As another step

to resolving these shortcomings GOM has been actively considering for sev-

eral years the establishment of a school for urban planners and managers

and a college for municipal engineering technicians. For both institutions

financial and technical arrangements are being formalized; UNESCO is expected

to help establish the school, and the French Government is expected to help

establish the college. While both institutions would begin training criti-

cally required staff in the foreseeable future, it will take years to pro-

vide sufficient personnel for effectively coping with urban problems in

Morocco.

4.10 One of the project's objectives would be to help GOM improve or-

ganizational and operational arrangements for urban development planning

and project management. MHAT is the obvious place where these efforts should

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be concentrated. For this reason it was decided to have MHAT take a principalrole in project implementation to enable its staff to gain project experience(para. 4.04). During project appraisal MUHTE's management indicated its in-tention to establish a special unit for urban upgrading planning aimed atimproving the living conditions of urban low income groups; this has beenconfirmed by the new Minister of HAT. The Ministry has been able to recruita competent, professionally experienced manager for this new unit. Workinglevel staff for the new unit remains to be recruited or to be appointed with-in MHAT. Under the project technical assistance will be provided to the newunit (para. 5.07) which would assume a support role to the planned ProjectImplementation Organization; it would provide technical guidance and be re-sponsible for project monitoring (para. 5.12). During loan negotiationsagreement was reached that the unit for Urban Upgrading Planning will beestablished appropriately staffed, equipped and accommodated by September 30,1978, and that it will prepare an initial work program outline within twomonths of its establishment. The work program will be satisfactory to theBank.

C. Ministere des Finances (MF)

4.11 GOM plans to address the problem of poor resource mobilizationfor the financing of housing programs (para. 1.03). MF has carried out somepreliminary market surveys; the results of these surveys have led to the con-clusion that no effective mechanisms to induce private savings for housingfinance exist in Morocco. GOM is now in the process of reviewing savings andloans systems in different countries. Under the project a small ad hoc unitwill be established in MOF and provided with technical assistance (para. 5.07)to prepare the institutional and procedural basis for a savings and loan sys-tem in Morocco. BCP is considered as the prime candidate for handling thissystem. During loan negotiations the proposed terms of reference and organi-zational and procedural arrangements, the staffing plan and job qualificationrequirements for the unit were reviewed and agreed upon. The unit will beestablished and properly staffed, equipped and accommodated by September 30,1978. The unit's work program will be satisfactory to the Bank.

D. Ministere de Travail et de la Formation Professionelle (MTFP)

4.12 This Ministry is another result of the Government reshuffle inSeptember 1977; it is the successor of the Ministere de Travail et desAffaires Sociales. In an effort to better link employment planning andemployment generation programs with required actions to prepare the country'slabor force for employment, GOM has decided to establish this Ministry withsole responsibility for planning and implementing employment strategies. Amajor task of MTFP is to arrange for effective programs to provide or upgradethe skills of the country's jobless so that they can be successfully integratedinto Morocco's economy. Especially the urban sector poses many problems;

- 29 -

unemployment in urban areas ranks highest in the country. The approach toreducing urban unemployment will have to be two pronged: more job opportuni-ties will have to be established, and the unemployed labor force will have tobe trained or retrained to meet job qualification requirements. It is thisapproach that will be applied under the project. MTFP's experience instrategic planning for employment, and particularly in vocational training isstill limited. The integrated approach to employment generation proposed forthe project will provide MTFP with an experimental setting where the prac-ticability and effectiveness of different vocational training concepts canbe tested. MTFP staff will also gain useful experience through participationin the planning and implemention of the proposed integrated employmentgeneration program under the project.

4.13 A vocational training center will be established in the projectarea. This center will be operated by MTFP staff and will provide specialtraining in skills which are required by businesses in the project area. Thecenter will be open to the population in the 7th Municipal Ward of Rabat. Aninitial training program and related curricula have been worked out by con-sultants, FGU - Kronberg (FRG). MTFP will review and finalize this trainingprogram which will be satisfactory to the Bank. Given the experimental char-acter of the employment generation program, MTFP's staff in the center will beprovided with the services of a vocational training expert who will be hiredunder the project (para. 5.07). A special liaison arrangement will be estab-lished between MTFP's training personnel in the center and the Business Pro-motion Unit (para. 4.07) to ensure that vocational training will be responsiveto skills requirements of businesses which will establish or expand in theproject area. During loan negotiations the proposed organizational and pro-cedural arrangements for the vocational training unit, its staffing plan,terms of reference and job qualification requirements were reviewed and agreedupon. Curricula and program outlines, as well as organizational arrangementsfor vocational training will be established by November 30, 1978 in a mannersatisfactory to the Bank.

E. Banque Centrale Populaire (BCP)

4.14 Under a special convention GOM will entrust BCP with the admin-istration of the line of credit for businesses in the project area, and ofconstruction material loans, and with the collection of all charges fromdifferent project beneficiaries for whom GOM will prefinance project items.The only exception will be the Municipality which will repay the prefinancedcosts of off-site infrastructure, community services equipment and technicalassistance to GOM directly (para. 3.19).

4.15 BCP is a fully government-owned bank; it was established in 1961.It is well managed and staffed, and can be considered as the major commercialBank in Morocco. BCP has varied resources; its own equity was US$17.5 mat the time of project appraisal. BCP's headquarters are in Casablanca.

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BCP's regional branch offices, the Banques Populaires Regionales (BPRs) are

located throughout the country. Each BPR has territorial boundaries andenjoys autonomy of management within defined limits of responsibility. BCP

coordinates the BPRs financial and promotional policies and acts as their

clearing house. BCP/BPRs provide short- and medium-term loans and have been

established to serve small firms and individuals who normally would not haveaccess to commercial banking facilities. As the major banking institutionin Morocco which specifically promotes small-scale business development, BCP

has been chosen to administer the Small Scale Industries component of the 8thloan to the Banque Nationale pour le Developpement Economique (BNDE) which was

approved by the Bank's Board of Directors in May 1977.

4.16 BCP has been commissioned by the Credit Immobilier et Hotellier, the

only housing finance bank in Morocco, to administer a special housing finance

program which is theoretically aimed at urban lower income groups. But these

lower income groups are not reached because of conservative loan appraisalcriteria, i.e., households with less than 500 Dirhams (US$114) monthly incomeare not considered for loans. This applies to more than 60% of urban house-holds. Terms for housing finance under this program are 15 years amortiza-

tion and 4% interest. Mobilization of housing finance funds costs GOM 8.5%interest which implies more than 50% government subsidy to housing loans.Under the project housing finance terms and conditions will be adjusted toreduce the need for government subsidies. To this effect, project benefici-aries will be charged 7% interest on loans to be repaid over 20 rather than15 years (para. 6.03). Monthly installments for housing finance under the

project will be about the same as those under existing arrangements. BCPalso grants loans for construction materials purchase. Collateral requirementsfor such material loans are quite stringent, however, in that the applicanthas to demonstrate that he has already partially built major parts of thedwelling for which he requires further materials. Since this criterion willnot apply to many squatter households in the project area, the collateralrequirement for material loans will be relaxed and applicants will be grantedmaterial loans on the basis of their assessed ability to repay. A maximummaterials loan amount will be established following this assessment, and

households can acquire materials up to the value of this amount from materialdepots to be established in the project area.

4.17 BCP's current lending practices to small scale businesses require30% equity financing in proposed investments. Since many of the future small-scale businesses in the project area will be financially weak at the outset, areduction of equity financing to 20% of the total investment costs is proposed.

Furthermore, BCP's current small-scale business loan repayment periods forindustrial plot development and construction financing will be extended from5 to 10 years, and from 2 to 5 years for equipment purchase financing. Forfinancing of working capital the currently applicable maximum repayment periodof 3 years will not be changed. The interest rate to be charged on loans tobusinesses in the project area will be 8.5%. The proposed line of creditwill not be limited to small scale businesses but will be available to anyenterprise or cooperative in the project area. However, to ensure maximum

- 31 -

employment generation, criteria have then specified to limit access to the

credit facility to labor - intensive businesses. To this effect the maximum

investment per job are set at DH 25,000 as eligibility criterion. Also, the

cumulative maximum of credit to any business in the project are will be

limited to DU 1,000,000. GOM has agreed to establish during its fiscal year

1979 a revolving fund as credit facility for small scale businesses. Credit

repayments by businesses under the Project will be channeled into this

revolving fund. The lending conditions and organizational/procedural arrange-

ments for this fund will be satisfactory to the Bank.

4.18 It is expected that the Banque Populaire Regionale in the Prefecture

of Rabat-Sale (BPR Rabat) will be appointed by BCP to execute the proposed

convention with GOM. BPR Rabat will establish a branch office in the project

area. The branch office will be accommodated in a building to be constructed

on La Butte. This office will be sufficiently equipped to handle some esti-

mated 12,000 individual dossiers covering plot charges, materials loans, and

different types of credit to businesses in the project area. It will receive

assistance from the Business Promotion Unit (para. 4.07) in appraising loan

applications from businesses, and from the Project Directorate in appraising

construction materials loan applications from households in the project area.

The office would have 12 agents of whom 6 will be collectors of monthly

charges from beneficiaries. Since the costs of squatter upgrading have not

been recovered in Morocco so far, there is little understanding about the

financial discipline of squatter households. It is expected that some house-

holds in the project area will not observe payment schedules, largely because

they are unfamiliar with such procedures. It is therefore proposed that

monthly plot charges be collected by BRP collectors for the first five years

after project completion; following this familiarization period, leaseholders

will make their monthly payments directly to BRP's site office. Paymentdiscipline will be monitored under the project. Once per quarter BRP Rabat

will prepare a report on the colLection of charges from beneficiaries and

submit it to the Service des Domaines (para. 4.06) so that appropriate legal

actions can be initiated in case of payment defaults. The branch office

will be established by March 31, 1978. During loan negotiations the proposed

terms and conditions of the convention between GOM and BCP were reviewed

and agreed upon. The same applies to BPR Rabat's proposed organizational and

procedural arrangements, staffing plan and job qualification requirements.

As a condition for loan effectiveness the GOM-BCP convention will have to be

formalized, i.e. both parties shall have entered into the agreement.

V. PROJECT IMPLEMENTATION

A. Implementation Schedule

5.01 The project will be implemented over a period of 36 months, start-

ing in April 1978. The proposed implementation schedule (Chart IBRD 18187)

has been sequenced to ensure that functional and organizational interdepen-dencies among individual project components are optimally incorporated in the

36 months implementation program. For instance, the Experimental Sites and

- 32 -

KINGDOM OF MOROCCORABAT URBAN DEVELOPMENT PROJECTPROJECT IMPLEMENTATION SCHEDULE

1978 1979 1980 1981

iI_l_ IV -Ili Il IV _

1. EXPERIMENTAL SITES AND SERVICES -…

HOUSING SCHEME- SITE PREPARATION- CADASTRAL SURVEY-INFRASTRUCTURE

WATERSEWERAGEROADSELECTRICITY

- HOUSING CORE UNITS- HOME IMPROVEMENTS I -- COMMERCIAL INSTALLATIONS-COMMUNITY FACI LITIES _ _

2. INDUSTRIAL ZONE- SITE PREPARATION- CADASTRAL SURVEY-INFRASTRUCTURE

WATER

SEWERAGEROADS

ELECTRICITY

INDUSTRIAL INSTALLATIONS| COMMUNITY FACILITI ES

3. UPGRADING DOUAR DOUM- CADASTRAL SURVEY-INFRASTRUCTURE

WATERSEWERAGEROADSELECTRICITY I |

-HOME IMPROVEMENTS -I I - I I I-COMMERCIAL INSTALLATIONS J . -IIIIIIII- COMMUNITY FACILITIES - - I

4. UPGRADING DOUAR HAJJA- CADASTRAL SURVEY-INFRASTRUCTURE

WATERSEWERAGE M -| _ -

ROADS I- HOME IMPROVEMENTS M I I I I- COMMERCIAL INSTALLATIONS- COMMUN ITY FAC I LITI ES -| _

5. UPGRADING DOUAR MAADID- CADASTRAL SURVEY- INFRASTRUCTURE

WATER

SEWERAG EROADS * - - -W

ELECTRICITY

- HOME IMPROVEMENTS- COMMERCIAL INSTALLATIONS-COMMUNITY FACI LITIES -

World Bank 18187

- 33 -

Services/Housing Scheme on La Butte wili be implemented first to provideaccommodation for the households to be relocated from the squatter settlementsbecause of upgrading measures, which will be carried out subsequently. Con-struction materials and equipment will be procured at the outset of projectimplementation to ensure that squatter households can benefit from theseprovisions and technical assistance provided by the Project Directorate forthe maximum time possible. Land development and site preparation and con-struction of installations for labor-intensive businesses will also be givenearly attention in the project cycle to ensure that most of the projectimplementation period can be devoted to business promotion and consequentlyto specifc employment generation measures, so that achievement of the targetto create 2,500 jobs by early 1981 can be reasonably expected. To ensure thatthe proposed implementation schedule can be maintained it is mandatory thatdetailed engineering of land development measures will be available by April1, 1978. GOM has already contracted consultants for the preparation of suchdetailed engineering (para. 5.03). For the same reason it is necessary thatfinal designs for proposed community facilities are available by April 1,1978. This will be done by the respective government agencies under whoseresponsibilities different project items fall. Detailed engineering,final designs for community facilities, and related procurement documentswill be satisfactory to the Bank.

B. Procurement

5.02 Given the relatively small volumes and amounts of the estimatedcosts of different project items, it is expected that most project items willnot attract the interest of international contractors. The only attractiveamounts represent the cost of on-site infrastructure (US$7.25 m) 1/ and com-munity facilities (US$6.82 m) 1/. However, on-site infrastructure reflectsby and large proposed squatter upgrading measures which are very labor inten-sive because no heavy construction equipment can be utilized in the denselysettled douars. This implies high overhead costs. Both factors are likelyto keep international contractors from bidding. Community facilities will beimplemented by the different ministries (para. 4.04) under the supervision ofthe Project Directorate. Each ministry will individually tender constructionwork for the items falling under its responsibility. This will result inseveral small procurement packages which will be unattractive to internationalcontractors. For these reasons, procurement of civil works will be on thebasis of competitive bidding as advertised locally. Local procurement pro-cedures have already been applied under other Bank assisted projects; theseprocedures are acceptable to the Bank. Supply of all materials and equipmentwill be on the basis of ICB, in accordance with Bank guidelines. Local manu-facturers/suppliers will be given preferential treatment in bid evaluation,in accordance with Bank guidelines 2/. For the installation of water and

1/ Including Contingencies.

2/ Fifteen percent competitive margin vis-a-vis non-Moroccan bidders,or the total of import taxes and duties, whichever amount is lower.

- 34 -

electricity supply networks, competitive bidding will be excluded in thatthese services will be provided by RED in force account work at prime costs.Under existing legislation RED has the monopoly in the Prefecture of Rabat-Sale for the installation and operation of water and electricity supplynetworks. There will be a special convention between GOM and RED under whichRED will agree to procure materials for water and electricity supply networkextensions through ICB and to install these extensions at prime costs underthe Project Directorate's supervision. During loan negotiations the proposedterms and conditions of this convention were reviewed and agreed upon. As acondition for loan effectiveness both parties shall have entered into thisconvention.

5.03 Consultant services for cadastral surveys will be retained fromlocal consultants on the basis of proposals from qualified firms registeredwith GOM. Consultant services for the preparation of detailed engineeringare being provided by the French consultants SCET who have already success-fully worked on similar assignments in Morocco and whose qualifications aresatisfactory to the Bank. GOM has contracted SCET. Retroactive financingup to US$250,000 of these consultant services is recommended under the proj-ect. Technical assistance in small-scale business promotion, preparation offuture urban upgrading projects, vocational training, housing finance reforms,and municipal equipment operation and maintenance will be retained fromexperienced consultants on the basis of proposals from prequalified firms.

C. Disbursement

5.04 Disbursements of loan proceeds will be made on the following basis:

Allocated ProportionDisbursement of Loan Proceeds

Item Percentage 1/ (US$ million)

1. Civil Works )Buildings ) 57% 9.25Construction Materials)

2. Consultant Services 60% 0.35

3. Business Promotion 83% 2/ 2.45

4. Equipment 90% 1.50

5. Technical Assistance 90% 0.45

6. Unallocated(reflecting various contingencies) - 4.00

TOTAL 18.00

1/ Percentage of the base cost estimate for each time.2/ Percentage of credit amounts disbursed.

- 35 -

5.05 The expected disbursement schedule is as follows:

IBRD Quarter Disbursement Cumulative DisbursementsFiscal Year Ending - …------------(US$ thousands)-------------

78 June 30, 1978 810 810 4.5%

79 September 30, 1978 390 1,200 6.7%December 31, 1978 1,100 2,300 12.8%March 31, 1979 1,450 3,750 20.8%June 30, 1979 1,850 5,600 31.1%

80 September 30, 1979 1,950 7,550 41.9%December 31, 1979 2,000 9,550 53.0%March 31, 1980 1,950 11,500 63.9%June 30, 1980 1,950 13,450 74.7%

81 September 30, 1980 1,750 15,200 84.4%December 31, 1980 1,300 16,500 91.7%March 31, 1981 900 17,400 96.7%June 30, 1981 500 17,900 99.0%

82 September 30, 1981 100 18,000 100%

Any undisbursed balance at the end of the project implementation periodwill be used to partially finance the purchase of further constructionmaterial.

D. Consultant Services

5.06 The Project Directorate will hire consultants to prepare projectdetails which are partially required prior to project implementation. Theseservices will be financed under the project and include:

(a) Detailed Engineering: For all proposed infrastructurerehabilitation and extension under the project detailedengineering remains to be completed to establish therequired basis for procurement of civil works. NeitherMHAT nor the Municipality have the staff, sufficientin number and qualifications, to prepare such detailedengineering. For this reason detailed engineering isbeing prepared by already selected internationally experi-enced consultants who are established locally (para 5.03).

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(b) Cadastral Surveys: For each of the five proposed projectsites, including Douar Doum, Douar Hajja, Douar Maadid,La Butte, and the Industrial Estate, a cadastral surveywill have to be carried out to determine and to fixproperty lines so that individual premises can be appro-priately delineated and recorded in the land registry ofthe Municipality and of the Service des Domaines (para.4.06). The cadastral services of the Municipality areinadequately staffed and will not be in a position to carryout these quite extensive surveys in the time frame re-quired. Therefore, local consultants will be hired tocarry out the cadastral surveys.

The contracts with and terms of reference for these consultants are or will besatisfactory to the Bank.

E. Technical Assistance

5.07 Technical assistance in project implementation will be providedthrough individual experts including:

(a) Urban Upgrading Planning: MUAT intends to establisha new unit for urban upgrading planning (para. 4.10).Staff for this unit is being recruited. MHAT hashowever, experienced problems in hiring financialexperts required for project analysis. Indicationsare that the same problems will be encountered inattempts to recruit appropriately qualified personnelfor the new unit. Therefore, an internationally ex-perienced financial analyst, specializing in urbansector work, will be provided under the project for32 man-months to assist the unit in analytical workand to train local counterparts in the financialanalysis of urban upgrading projects.

(b) Housing Finance Reform: GOM intends establish thebasis for required reforms of the housing financesector in Morocco (para. 4.11). MF is expected tocarry out initial reviews of existing practices andprocedures and to prepare recommendations for a hous-ing finance program which will effectively respondto the financial assistance requirements of differenturban income groups. Experience in housing finance,especially with financial assistance to urban low in-come groups is limited in Morocco. Under the project8 man-months of yet unspecified technical assistancethrough internationally experienced housing financespecialists will be available to MF to provide guidancein sector reviews and technical know-how in preparingrecommendations for housing finance reforms.

37 -

(c) Small-Scale Business Promotion. Little experienceexists in the Moroccan administration with programs

to promote small-scale business. GOM attaches, how-ever, great importance to measures aimed at improvingits support role to this vital segment of the urbaneconomy. To assist in small-scale business promotionin the project area unit one internationally experi-enced small-scale business expert will be providedunder the project for a period of 30 man-months.

(d) Vocational Training. GÙ>M intends to improve itsvocational training programs which are responsibilityof MTFP (para. 4.12). Proposed vocational trainingunder the project with its clearly defined ad hocorientation will serve as an experimental basis forthe proposed improvement. Experience with vocationaltraining programs in MTFP is limited. For profes-sional guidance in proposed vocational training oneinternationally experienced training adviser willbe provided under the project for a period of 20man-months.

(e) Municipal Equipment Operation and Maintenance.Organizational arrangements for providing municipalservices in Rabat, such as street and sewer mainte-nance, garbage collection and fire fighting areinadequate. This pertains particularly to equipmentoperation and maintenace. Under the project municipalequipment will be provided to improve communityservices in the Municipal Ware of Rabat. To assist inestablishing adequate operational arrangement for thisequipment and also to assist organizational reformsaimed at improving municipal services in Rabat, onemechanical engineer specializing in municipal equipmentmanagement will be provided under the project for aperiod of 20 man-months.

All technical assistance experts will have assumed their duties by December31, 1978. The qualifications of and contracts and terms of reference forthese experts will be satisfactory to the Bank.

F. Accounts and Audits

5.08 Each government agency involved in the project will establish andmaintain a separate project account reflecting its allocated budget andincurred expenditures for the implementation of project components fallingin its domain. The Project Directorate will maintain a consolidated projectaccount which will reflect the status of all accounts of the different govern-ment agencies. Preparation and maintenance of this consolidated project

- 38 -

account will be under direct supervision of MF. Within MF there will be aspecial unit assigned to monitor the project's financial status and to preparedisbursement applications to the Bank. The Project Directorate will prepareand MF will approve and distribute at the end of each year a comprehensivestatement on the project's financial status. The financial performance ofeach government agency in respect of project activities will be audited by MFonce per year. The format and procedural arrangements for project auditingwill be acceptable to the Bank.

G. Operations and Maintenance

5.09 Operations and maintenance of project components will be handledas follows:

(a) Infrastructure- roads, sewerage Municipality- water, electricity RED

(b) Community Services Municipality(garbage collection, firefighting, ambulance)

(c) Schools MEN

(d) Center for Education and Workfor Young Women MASA

(e) Vocational Training Center MTFP

(f) Health Care Installations MSP

(g) Youth Centers MJS

H. Monitoring and Evaluation

5.10 Given the proposed project's experimental character, it will beimportant to assess the effectiveness of different planned project measuresin contributing to the achievement of the project's goals and objectives.Among other things, it will be necessary to observe the interaction of govern-ment planning and community response. Also the practicality of selectedorganizational and operational arrangements for project impletation will haveto be assessed. The development of an understanding about the usefulness ofselected vocational training/skills upgrading arrangements will be indispens-able. The insights gained will enable all agencies involved to continuallyadjust their provisions for project implementation to ensure optimal arrange-ments for different items in line with the project's objectives. It willenable GOM, especially MHAT, to adjust the selected approach to urban upgrad-ing, and associated technical concepts. Frequent adjustments, as deemed

- 39 -

desirable on the basis of continuing monitoring and evaluation under theproject will be a built-in feature of the project. Regular consultationsbetween GOM and the Bank will be scheduled to discuss and agree on desirableproject implementation changes in the light of insights gained from projectmonitoring.

5.11 The existing baseline data for project monitoring is an almostideal one. A comprehensive socio-economie survey of all 11,900 families inthe project area was carried out between September 1976 and April 1977. Thedata from this survey include information on household income, income source,professional skills, education, household size and composition. An additionalhealth survey, complemented by clinical tests on members of 400 randomlyselected households in the squatter settlements will be carried out by June1978. This will be done by MSP's Chief Medical Officer in the Municipality.Detailed information on type and condition of existing housing in the squattersettlements is presently being compiled on the basis of field surveys carriedout by MHAT.

5.12 Measures of effectiveness and related survey procedures, acceptableto the Bank, will be established by MXAT's new unit for Urban Upgrading(para. 4.10) in collaboration with the Small-Scale Business Promotion Unit,MSP and MEN, by December 31, 1978. Responsibility for project monitoring andevaluation will be within MHAT's Unit for Urban Upgrading Planning in which asmall monitoring unit will be established with staff inputs, as required,from MSP, MEN and the Small Scale Business Promotion Unit. Project impactmonitoring will include, inter alia

(a) physical changes in housing;

(b) changes in rents;

(c) changes in school enro]Llment and literacy rates;

(d) changes in household income;

(e) changes in skills and employment (by type, location andnumber employed per household), especially changes inwomen's productive capacities and share in unemployment;

(f) changes in rates of incidence of selected diseases, andof clinical indicators, such as blood composition; and

(g) changes in nutritional intake.

The Small-Scale Business Promotion Unit will establish particular criteriafor monitoring and evaluating the development of economic activities in theproject area, including production, turnover, labor input, market for producedgoods, etc. The Unit will be responsible for this monitoring.

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I. Supervision

5.13 About 113 man-weeks of Bank project supervision will have to beprogrammed for the three-year project implementation period. IDuring thefirst year, 41 man-weeks, including 18 man-weeks in the field, will have tobe allowed for; in the second year 33 man-weeks, including 14 man-weeks inthe field; and in the third year 37 man-weeks, including 16 man-weeks in thefield will have to be allowed for. Following Bank staff or consultants willbe required:

Man-WeeksProfessional Category Project Year Office Field

Project Officer (Engineer) 1 14 102 12 83 12 8

Financial Analyst 1 3 22 3 23 3 2

Small-Scale Business 1 2 2Promotion Expert 2 2 2

3 2 2

Training Expert 1 2 22 1 13 2 2

Sociologist 1 2 22 1 13 2 2

TOTAL 1 23 182 19 143 21 16

VI. FINANCIAL ANALYSIS

A. Cost Recovery Principles

6.01 One of the project's objectives is to improve cost recovery ofurban development investments so that GOM's ability to financially cope withurban problems will be enhanced. The costs of squatter upgrading and of the

-, 41 -

Experimental Sites and Services/Housing Scheme, excluding the costs of com-munity facilities and off-site infrastructure, will be recovered from projectbeneficiaries directly. The same principle applies to the Employment Genera-tion Program; also the costs of project management will be recovered fromproject beneficiaries . This implies that 67% of the total project costs, netof taxes and equity financing by entrepreneurs (para. 3.17) will be recoveredfrom project beneficiaries directly. The costs of community facilities willbe borne by the Government budget. The costs of off-site infrastructure willbe recovered in conformity with official practice through a special tax, thetax de premier etablissement, which will be applied citywide. Allowing forcost recovery through the tax de premier etablissement in addition to costsrecovered from project beneficiaries directly increases overall cost recoveryunder the project to 79%. However, the interest rates at which these costswill be recovered do not fully reflect the cost of mobilizing project financ-ing. As will be described in the following paragraphs, the interest rates atwhich the costs of different project items will be recovered are partiallybelow the interest rate on the Bank loan, and interest on other GOM borrowings.Adding only the cost of amortizing the Bank loan over 20 years to the projectcosts and allowing for the yield of interest paid by the project beneficiaries,increases cost recovery to 84%. But when GOM's counterpart funds are costedat 8.5% over twenty years, which are roughly the market borrowing conditionsfor the Government, project cost recovery is reduced to 62%.

6.02 Yet, the proposed cost recovery terms and mechanisms imply a sub-stantial reduction of government subsidies in urban development programs.The costs of squatter upgrading, to the limited extent it has been carriedout so far, have never been recovered from beneficiaries. These costs wereborne by municipal budgets, which are dependent on central government sub-sidies for that matter. The interest on housing mortgage loans will be in-creased by 75%. The interest on loans to businesses will be increased by 45%.The combined effect of all these measures can be seen as a major achievementin GOM's long-range objective to establish full replicability of urban upgrad-ing and development programs (para. 1.04). To illustrate this effect: ifofficial GOM cost recovery practices would have been applied in pricingproject items, project cost recovery would have been reduced by about 40%.

6.03 The costs of different project items will be recovered frombeneficiaries as follows:

(a) Residential Plot Costs to be recovered from plotholderswill include the costs of land, cadastral surveys, sitepreparation, on-site infrastructure, compensation 1/,

1/ Households that have to be relocated from the squatter settlementsto the Experimental Sites and Services/Housing Scheme on La Butte willbe compensated for their lost property. Estimated average compensationper household will be DH800 in Douar Doum, DH8,000 in Douar Hajja, andDH3,500 in Douar Maadid. The individual compensation amounts will beestablished by the Project Directorate and will be credited as down-paynent for a new plot on La Butte. The costs of this compensationarrangement will be borne by all households in the project area whowill not have to be relocated.

- 42 -

resettlement 1/, pre-elementary schools 2/, and apro-rata share of detailed engineering and projectmanagement costs, and interest during construction(IDC). These costs will be recovered through monthlycharges. Plotholders will become owners of theirplots (freehold) once they have paid the allocatedcosts in full; until then they would be given securetrenure through leasehold contracts with GOM (para.4.06). Leaseholds will be transferable. However,until December 31, 1982, the selling price of a lease-hold will be determined by the Service des Domainesand the leasehold sale will be through the Service.Thereafter, leaseholds can be freely sold by the plotholders. Monthly lease payments will recover theallocated plot cost at 7% interest over a 20-yearperiod. Collateral other than downpayment (compensa-tion) will not be required from households moving onto La Butte; a plot w!l be considered as mortgage. Incase of default on lease payments, plotholders will begiven a six months notice and evicted if they will notpay within this period. The same rule applies toplotholders in the squatter settlements.

(b) Commercial/Industrial Plot Costs. For commercialplots in the squatter settlements and on the Experi-mental Sites and Services/Housing Scheme and forindustrial plots in the proposed Industrial Estate,monthly plot charges will be established which reflectthe costs of land, cadastral surveys, site preparationand on-site infrastructure, and pro-rated costs ofdetailed engineering, project management, and IDC.These costs will be recovered at 8% interest over 10years.

(c) Core Unit Costs. 900 core units (520 on plots Type A,300 Type B and 80 Type C) will be constructed bycontractors on La Butte and will form the experimentalhousing scheme. Cost recovery will be through monthlyinstallments. These installments will be establishedto recover construction costs at 7% interest over 20years. No collateral will be required; the core unit

1/ The costs of moving 900 households to the Experimental Sitesand Services/Housing Scheme will be borne by all householdsin the project area who will not have to be relocated.

2/ Pre-elementary schools are commonly financed by households in aneighborhood which they serve.

- 43 -

will be considered as mortgage. In case of default on

monthly payments, households would be given six monthsnotice and will be evicted if they do not pay withinthis period.

(d) Construction Material Costs. Cost of constructionmaterial made available under the project will berecovered through monthly payments to BRP Rabat.Financial terms of repayment will be 10 years at 7%interest. A default rate of 5% on payments has beenassumed and associated costs are covered by a 1.2%mark-up on the basic interest rate of 7%.

(e) Commercial Installation Costs. Of the 520 retail business/service activity units which will be constructed under the

project, 300 will be constructed in Douar Doum, 120 on La

Butte and 100 in Douar Maadid and Douar Hajja. Cost recoverywill be through monthly charges which will be established torecover construction costs at 8% interest over a 10-year period.

(f) Line of Credit to Businesses in the Project Area. The interestrate on credits for plot development, building construction,equipment purchase and working capital will be 8.5% with amor-tization periods not to exceed 10 years for plot developmentand construction, 5 years for equipment purchase, and 3 years

for working capital.

6.04 During loan negotiations the proposed cost recovery mechanisms,

their terms and conditions, compensation and relocation arrangementswere reviewed and agreed upon; they will be incorporated in the GOM-BCPconvention (para. 4.14).

B. Pricing

6.05 Plot Charges for the Squatter Settlements. Plot charges in the

squatter settlements have been computed by pro-rating the allocable costsof upgrading on a per plot basis. To improve plot charge affordability,price differentiation among different types of plots and among the squattersettlements has been applied; in that way residential plot charges in DouarDoum, which is the lowest income squatter settlement, could be reduced fromDH8,350 to DH3,760. This reduction has been achieved by increasing the

monthly charges for the 1,250 commercial plots in all three squatter settle-ments by 5,485 Dirhams. In addition, plot charges in Douar Maadid wereincreased by 48%. Table VII-1 shows plot charges for the three squatter

settements.

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RABAT URBAN DEVFLOPMENT PROJECT

TABLE VII-1: COMPUTATION OF MONTHLY PLOT CHARGES FOR

THE SQUATTER SETTLEMENTS(in Dirhams)

Douar Doum Douar Hajja Douar Maadid

Allocable Costs 1/- Land 2/ 1,458,000 2,494.800 2,790,000- Cadastral Survey 250,600 417,700 323,700- Compensation 624,000 160,000 350,000- Resettlement 312,000 8,000 40,000- On-Site Infrastructure 15,075,200 5,460,900 4,392,500- Pre-elementary schools 275,800 235,900 262,500- Detailed Engineering 3/ 561,300 202,500 163,600- Project Management 3/ 1,197,000 453,900 387,300- interest during construction 3/ 545,600 213,400 173,900

Total 20,299,500 9,647,100 8,883,500

Number of Plots- Residential 2,030 1,630 2,600- Commercial 400 350 500

Total 2,430 1,980 3,100

Plot Costs (undifferentiated) 8,350 4,872 2,865- Monthly Charges 65 38 22

Plot Costs (Price differentiation)

- Residential Plots 3,760 4,872 4,255Nonthly Charges 29 38 33

- Commercial Plots 9,243 10,355 9,738Monthly Charges 112 126 118

1/ Including physical and price contingencies.2/ Net residential and commercial land.3/ Pro-rated share in total cost of respective item.

- 45 -

6.06 Plot Charges for the Experimental Sites and Services/Rousing Scheme.Plot charges for this scheme on La Butte have been computed by charging allallocable costs per square meter. To ensure plot charge affordability byrelocated households, two price differentiations among plots have been con-sidered on the basis of land values, depending on the location on the siteof an individual plot. Firstly, plots earmarked for community facilitiesand commercial installations were higher priced than residential plotsbecause they are sited in prime locations (Map IBRD 13052). Charges forland for community facilities were increased by 50% and charges for land ear-marked for commercial use were increased 300%. Secondly, plot charges for60 residential Type A plots, 60 residential Type B plots and 60 residentialType C plots which will also benefit from locational advantages were increasedby 50%. These increases in charges for plots in prime locations permit re-ductions in charges for residential plots elsewhere on the site. In addition,4 hectares of land in the Industrial Estate (para. 6.06) will be sold atdouble the cost of land acquisition and development. The extra income earnedwill be used to reduce the plot charges for the lowest income households to berelocated from the squatter settlements to La Butte. Table VII-2 shows theresidential plot charges for the Experimental Sites and Services/HousingScheme. Finally, the impact of compensation allowances on plot costs andassociated monthly charges has been determined (Table VII-3).

6.07 Plot Charges for the Industrial Estate. The allocable costs ofplots in the industrial zone, including costs of land, site preparation, thecadastral survey, on-site infrastructure, and pro-rated costs of detailedengineering, project management and IDC, are be 8.08 m Dirhams for the Ilha. industrial zone; 7 ha. will be developed for industrial plots of varyingsizes. The per sq.m. plot cost allocation will be 100 Dirhams (including allcontingencies). Four hectares of land in the Industrial Estate are expectedto be bought by Category I businesses (see Annex 1, Section 6, para. 30).This land will be sold at 900 Dirhams per sq. m.

- 46 -

RABAT URBAN DEVELOPMENT PROJECT

TABLE VII-2: COMPUTATION OF MONTHLY PLOT CHARGES FORTHE EXPERIMENTAL SITES AND SERVICES/HOUSING SCHEME

(in Dirhams)

Allocable Costs 1/- Land 2/ 996,000- Cadastral Survey 292,400- Site Preparation 442,100- On-Site Infrastructure 3,666,900- Pre-elementary Schools 188,000

(including equipment)- Detailed Engineering 3/ 135,,700- Project Management 3/ 330,800- Interest during construction 3/ 159,600

TOTAL 6,211,500

Costs per square meter 74.8

Plot Type (number) A(520) B(300) C(80)

A. Plot Costs (undifferentiated)

-Plot Costs 4,488 5,236 5,984-Core Unit Costs 4/ 9,898 10,090 11,494

Total Plot Costs 14,386 15,326 17,478

Monthly Plot Charges 111 118 134

B. Plot Costs (Price differentiation)

1. Plots in Prime Location (No.) (60) (60) (60)- Plot Costs 5/ 15,178 16,250 18,534

Monthly Charges 116 125 143

2. Non-Prime Located Plots (No.) (460) (240) (20)- Plot Costs 4,350 13,660 15,574

Monthly Charges 33 105 120

l/ Including physical and price contingencies.2/ Net residential land.3/ Pro-rated share in total costs of respective item.4/ Including pro-rated share in interest during construction.5/ Including core unit costs.

RABAT URBAN DEVELOPMENT PROJECT

TABLE VII-3: COMPUTATION OF MONTHLY-PLOT CHARGES FOR THE EXPERIMENTAL SITES

AND SERVICES/HOUSING SCIIEIIE ALLOWINC FOR RELOCATION COMI'ENSATTON(in Dirhams)

Plots in Prime Location Non-Prime Located PlotsWith Core Unit With Core Unit

Type A Type B Type C Type A Type B Type C

Households relocated from:

Douar DoumPlot Costs 15,178 16,250 18,534 4,350 '13,660 15,574

Compensation 800 800 800 800 800 800

Total Plot C5sts 14,378 15,450 17,734 3,550 12,860 14,774 >

Douar HajjaPlot Costs 15,178 '16,250 18,534 4,350 13,660 15,574

Compensation 8,000 8,000 8,000 8,000 8,000 8,000

Total Plot Costs 7,178 8,250 10,534 - 1/ 5,660 7,574

Douar MaadidPlot Costs 15,178 16,250 18,534 4,`350 13,660 15,574

Compensation 3,500 3,500 3,500 3,500 3,500 3,500

Total Plot Costs 11,678 12,750 15,034 850 10,160 12,074

Monthly Plot Charges forHouseholds relocated from:

Douar Doum 111 119 138 27 100 114

Douar Hajja 56 64 82 - 44 59

Douar Maadid 91 99 116 7 78 93

1/ This situation will not occur; none of the households to be relocated from Douar Hajja and Douar Maadid

will be eligible for type A or type B plots, in no prime location and without core unit.

- 48 -

6.08 Charges for Construction Material will be on a monthly basis asfollows:

Estimated AverageValue of Materials

Beneficiaries from Loans Monthly Charges(DH) (DH)

Douar Doum 1,000 12Douar Hajja 2,400 28Douar Maadid 1,800 21La Butte 2,000 23

6.09 Charges for Commercial Installations. 520 commercial installationswill be constructed and sold under the project at DH9,650 each. This priceincludes all contingencies. Monthly charges for these 520 commercial instal-lations will be DHI17. This charge will be applicable to any of theseinstallations, regardless of its location in the project area.

6.10 During loan negotiations the proposed pricing principles, anddifferent charges and rents were reviewed and agreed upon. Charges andrents outlined in this report are indicative only; they were derived fromthe appraisal-mission's cost estimates. The exact levels of charges andrents can be established only once the actual costs of completed contractor/supplier contracts are known. BCP will then, in consultation with theProject Steering Committee and the Bank, establish charges and rents to bepaid by project beneficiaries.

C. Affordability Analysis

6.11 Observed Project Area Household Incomes and Housing Expendituresin 1977. The comprehensive surveys of households in the squatter settlementsconducted by MUHTE in late 1976 for Douar Doum, and early 1977 for DouarsMaadi and Hajja (para. 5.11), provided information on household incomes andhousing expenditures. The median monthly incomes in Doum, Maadid and Hajjaare 275, 310 and 430 Dirhams respectively (Chart IBRD 18186). The medianmonthly expenditures on housing (rent) are 36 Dirhams in Douar Doum, 70Dirhams in Douar Maadid and 100 Dirhams in Douar Hajja, which implies thathouseholds spend about 25% of their income on housing.

6.12 Expected Project Area Household Incomes and Housing Expendituresat Project Completion, i.e.. early 1981. Expected incomes for 1981 werecalculated under the assumption that nominal increases in household incomewould be 8% per year, a figure derived from the past growth rate of nationalincome. It was further conservatively assumed that no structural changesin income distribution would take place, which is unlikely because the em-ployment generation program will bring about changes in income distribution,reflecting improved earnings of present low-income households.

KINGDOM OF MOROCCORABAT URBAN DEVELOPMENT PROJECT

OBSERVED AND EXPECTED HOUSEHOLD INCOMES

100i

80

-J ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~ -0 OBSERVEDo ~~~~~~~~~~~~~~~~~~~~~~~~~~~HOUSEHOLD INCOMES

Ci) 60 t -. L2ŽLe < '- CDOUAR DOUM 1976

zo _ --- DOUAR MAAD D 197

DOUAR HAJJA 1977o- RABAT 197r B 77w

H 40zwu - 18 OSHL NOE

20 DURMAI

~~DOUAR HAJJA <~~~~LOGARITHMIC SCALE)

100 200 300 400 500 600 700 SO00 900 1000 1200 1400 1600 1800

MONTHLY HOUSEHOLD INCOME(IN DIRHAMS)

World Bank - 18186

- 50 -

1ith the expected 1981 household incomes in the project area, theaffordability of plot charges has been determined on the assumption that 25%of each household's monthly income would be disposable to cover housingexpenditures. The impact of plot cost differentiation and compensation forrequired relocation has been evaluated and the results are shown in TableVIII-4.

6.14 As demonstrated in Table VII-4, the allocated residential plot costsof land acquisition 1/ and squatter upgrading will be affordable by more than90% of the households in the three squatter settlements. In the ExperimentalSites and Services/Housing Scheme, it will be financially affordable toacquire a new plot with a contractor-built core unit for 95% relocated house-holds from Douar Doum, and 100% of households relocated from Douar Hajja andfrom Douar Maadid. Following percentages of households remaining in thesquatter settlements could afford the estimated average cost of constructionmaterial considered necessary for essential home improvements: 80% in DouarDoum, 83% in Douar Hajja, and 81% in Douar Maadid. Improved income broughtabout through reduction of unemployment, expected higher wages, and sublettinghas not been accounted for; the results of the affordability analysis cantherefore be considered as conservative.

6.15 Utility charges are recurrent expenditures which will accrue tohouseholds in the project area, in addition to monthly installments forplots, housing, and construction materials. In Douar Doum, which will beprovided with standpipes for water supply, each household will be chargeda flat rate of 4 Dirhams per month for water consumption based on an estimated30 1/capita consumption per day. Plots in Douar Hajja, Douar Maadid andin the Experimental Sites and Services/Housing Scheme on La Butte will beprovided with individual water connections. Based on the expected per capitaconsumption in these three neighborhoods the estimated monthly charge forwater will be 7 Dirhams per household. The impact of these utility chargeson affordability will be minimal. Individual electricity connections toplots would be installed by RED on application by the plotholder. The costsof connection, meter rental, and charges for expected monthly electricityconsumption could be afforded by 60% of the households in the project area.

D. Project Cash Flow

6.16 The project's cash flow is shown in Table VII-5.

1/ In the absence of agreed purchase agreements for all project sites,land acquisition cost estimates applied in project appraisal reflectrecent land purchase prices GOM has paid for land in the vicinity ofthe project area.

RABAT URBAN DEVEIOEMENT PROJECT

TABLE vii-4: AFPRDABILiTY ANALYSIS FOR RESiDENIAL PLOT CHARGES

. ---- Mont _ha- *-____ ____---_-----------_--------- Affordability----------- --------------(4nflirhams) (percentage of households reached)

With Price With PriceW/0 Price With Price Differentiation W/O Price With Price Differentiation

Site Differentiation Differentiation and Compensation Differentiation Differentiation and Compensation

Douar Doum 65 29 n.a. 70 90 n.a.

Douar Hajja 38 38 n.a. 95 95 n.a.

Douar Maadid 22 33 n.a. 98 95 n.a.

La Butte

Plot Type AHouseholde relocated from:- Douar Doum 111 33 27 45 85 90- Douar Hajja lll 33 - 70 95- Douar Maadid 111 33 7 50 90 100

Plot Type A (Prime Location)Householdl relocated from:

- Douar Doum 116 111 45- Douair HaJJa 116 56 66 88- Douar Maadid 1-16 91 46 60

Plot Type BHoueholds relocated from:

- Douar Doum ll8 105 100 40 48 52- Dour Hajja ll8 105 44 65 70 94- Douar Maadid 118 105 78 45 50 64

Plot Type B (Prime Location)Houweholds relocated from:

- Douar Doum -25 119 39 42- Douar HajJa 125 64 61 86- Douar Maadid 125 99 42 56

Plot Type CHouseholdo relocted from:

- Douar Doum 134 120 n14 35 41 44- Douar Hajja 134 120 59 56 64 87- Douar Maadid 134 120 93 38 44 40

flot Type C (Prime Location)Hoseholde relocated from:

- Douar Doua 143 138 32 36- Douar Hajja 143 82 52 80- Douar Maadid 143 116 36 45

-52-

RABA1T MMU DOEVZPCNT PROJEST

TABL VII_5t PB0lT CASR Fuxi

(DR 000)

1978 1979 1980 1981 19,3- 1983 1984 1985 1986 1987 1988 1989 1990

Sources ot Fundf

MM Badget Allonati, 30,432.9 21,788.0 19,764.9 12,648.1 - - - - - - - - _Bank Oisbvrsana lf 1,320. 3,0.3,5.0 6,60o.0 - - - - - - - - -

frsnafers f f OP 107.8 1,02386 6,031.5 20,386.3 9,922.2 9,805.0 9,123.8 8,743.2 8,525.7 8,525.7 8,47.s 8,232.9 6,219.1loatt Repqwasnt (hn,iciyulity of ntbat)

39/ 1083..ra 585.3 1.186.1 1,455.5 2.438.7 2.438.7 2,438.7 2.438.7 2.438.7 2,438.7 2S43Ç.7 2,438.7 2.438,7

Total Sources 40,769.0 55,302.4 57,562.5 31,089.9 12,360.9 12,243.7 11,181.9 10,964.5 10,964.5 #4pC4.s 1,911.2 10,671.6 8,577.8

Application or Fndsi

MUHT

Land 19,020.0 - - -Re.ettlenent 120.0 180.0 60.0 _ _ _ _ _ _ _ - _ _Site Preparation 1,591.7 795.9Detailed Engineering 1,077.3 538.6Cadastral Survey 774.1 580.4 96.8Off-atte Infrastructure 2,337.4 5,064.3 3,506.1 779.1 -On-site Inftrastructure 5,231.0 13,397.7 10,634.4 2,621.6 -Pre-eleaentary *chools 25.9 295.5 474.4 166.6 -ltming Ccre mut cstruetion 1,760.7 4,988.4 2,054.1 -Construction Materials and Equipnt 3,295.2 4,307.9 1,330.2 -Otercial ITnstallationa 166.9 1,418.9 2,337.1 1,085.1Business Praootion Unit 450.3 677.5 672.5 392.3 - - - - _ - _ _ _Prujent Mangeg,ent 2,100.9 2,322.2 1,907.8 1,112.8 - - - - - - - - -Technical Assistance 35.g 585.1 610.4 - -. o

Sou-total 38,315.6 35,152.4 23,683.8 6,513.5

MON

Prinery Schools 389.0 4,o58.8 6,367.2 2,217.6

MSP

Dispenseriez 59.2 848.5 1,430.9 510.7

MF

Line of Credit to BRsinesse, 545.4 4,o40.-5 6,280.7 3,262.8Cmunity Service Equipent - 3,025.9 1,512.9 -Technical Assistance 132.2 217.0 226.4 132.0 -- -flebt Servicing 649.0 2.127.0 4,228. 5,676.9 52 Ž4 10.918.2 1 18:197.0 9:803.6 9:410.3 9,016.9 8,623.6 8,230.2

Sub-total 1,326.6 9,410.4 12,248.8 9,071.7 5,930.4 10,918.2 10,590.4 10,197.0 9,803.6 9,410.3 9,016.9 8,623.6 8,230.2

Vocational Trainiog Center 149.9 1,681.1 2,687.5 942.2 -Technical Assistance 88.8 1b5.9 152.2 88.7

.Sib-total 238.7 1,827.0 2,839.7 1,030.9 - - - - - - - -

UASA

Center for Education andWork for Young Woeen 134.6 1,407.3 2,208.8 769.4 - - - - - -

MSis

Contre de Jenes 71.5 781.9 1,242.2 434.5taiso de jeunes 17.7 201.7 323.5 113.5 - _ - _ - - _ - -

Sub-total 89.2 983.6 1,565.7 548.o - - - _ - - _ _

TOTAL APPLICATION 40,552.9 53,688.0 50,344.9 20,661.8 5,900.4 10.918.2 10,590.4 10,197.0 9,803.6 9,410.3 9,016.9 8,623.6 8,230.2

Surplua/(Deficit) 216.1 1,614.4 7,217.6 10,428.1 6,460.5 1,325.5 972.1 984.9 1,160.9 1,554.1 1,894.3 2,048.0 327.6

O,cfative &urpins 216.1 1,830.5 9,048.1 19,476.2 25,936.7 27,262.2 28,234.3 29,219.2 30,380.131,934.2 33,828.5 35,876.5 36,234.1

4 Includes allocation for intereat during construction.A fo'r tonth delay between contractor/supplier invoti snd actual Bsank diaburseent tas been satnd.R Receipts fanr beneficiaries, net or operating costa of BCP.LOt -noera off-site infrastructure, coaunnity service, equipuent and technical assistance at 9% intereatover 15 years, including a grasce period cf 4 yeans.

- 53 -

VII. PROJECT JUSTIFICATION

7.01 The proposed project represents a first coordinated approachto deal vith the structural problems of an entire urban district. In partic-ular, emphasis vill be put on urban upgrading and better utilization ofexisting infrastructure resources, and improvement of existing housing stock.There is no precedent of such an approach in Morocco where urban planningpolicies and practices have almost always been oriented towards urban devel-opment concepts which implied high economic and social costs. The projectwill therefore not only produce immediate benefits to Rabat in general andthe project area and its population in particular, but there will be long-ranging benefits for all urban areas in Morocco. The insights and experiencegained during project implementation will influence central and local govern-ment provisions for the development of other cities in the country. Theproject will also introduce improved urban development planning, financingand project management arrangements. Another far-reaching benefit to thecountry's urban sector will come about through improved recovery of urbandevelopment costs, which will be initiated under the project and which GOM isnow committed to improve further. As a result, government subsidies to thesector can be substantially reduced enabling a larger and more replicablepublic investment program to be undertaken. Finally, low-cost urban upgradingconcepts introduced under the project will enhance GOM's ability to serve alarger proportion of the needs of Morocco's urban poor.

7.02 The proposed employment generation program will also producebenefits with spill-over effects beyond the confines of the project. Inparticular, the experience gained through monitoring the effectiveness ofsmall-scale business promotion measures will contribute 1/ to a better under-standing of the development and assistance requirements of more than 80% ofurban economic activities in the country. It will also provide the Governmentvith a better understanding of the labor and skills requirements of small-scale businesses. The experience gained in carrying out the vocationaltraining program will enable the Government to deal more effectively withurban unemployment in the country through market demand oriented vocationaltraining.

7.03 The immediate project benefits will largely accrue to the populationin the project area. These benefits will come about through improved accessand basic utilities, better sanitation, provision of social infrastructure,such as schools and health care facilities, improved housing, skills upgradingand provision of job opportunities. They will be manifested by changes inthe productive capacity and mobility of the labor force in the project area,changes in consumption brought about by improved household incomes, increasesin school enrollment, and reduction in the incidence of diseases. Quantifiable

1/ The 8th BNDE project (para. 4.15) provides for similar arrangements inthree other Moroccan cities.

- 54 -

bailefits will result from project implementation include: increases inland values through upgrading measures and provision of urban services, and>uLwe ilproveuients brought about by vocational training and labor-intensivebusiness promotion measures under the project.

7.04 For each of the three squatter settlements and the ExperimentalSites and Services/Housing Scheme the expected increase in residential landvalues measured by rental value changes has been considered as a projectbenefit brought about by legalizing tenureship, provision of infrastructure,community facilities, commercial installations, and improved housing. Incalculating the economic rates of return of associated development costsfor each site, the costs of engineering and project management have beentaken into consideration. The economic rates of return of squatter upgrad-ing will be 20% for Douar Doum, 21% for Douar Hajja, and 21% for Douar Maadid.Sensitivity tests reflecting +10% changes in expected costs and benefitsaffected the rates of return only minimally which indicates that the proposedinvestment in squatter upgrading is sound. The economic rate of returnof the Experimental Sites and Services/Housing Scheme will be 19%. Theproposed investment in this scheme and the expected benefits have been sub-jected to the same sensitivity testing as in the case of squatter settlements;the results were similar. In determining the economic return of proposedinvestments for employment generation the expected changes in householdincomes have been considered as a project benefit brought about by provisionof developed land for industrial and commercial uses, required investments bybusinesses in the project area, and vocational training. In calculating theeconomic rate of return of associated investment costs, the cost of engi-neering, project management, and the Small-Scale Business Promotion Unit havebeen taken into consideration. The economic rate of return of the employmentgeneration program will be 21%. Changes of +10% in the expected costs andbenefits implies a variation in the economic rate of return between 18%and 23%. The overall economic rate of return of the proposed investmentunder the project will be 20%.

VIII. CONCLUSIONS AND RECOMMENDATIONS

8.01 The project is considered as a first and important attempt tocomprehensively deal with the structural problems of an entire section ofone of Morocco's large conurbations. These problems are not symptomaticfor this urban area or Moroccan cities alone but are found in almost thesame character and to the same extent in urban areas elsewhere in the NorthAfrican region. The same applies to prevailing restrictive urban developmentattitudes and policies, technical standards and financing practices in theregion. The outcome of the project and the experience gained during itsimplementation will consequently not only provide useful insights for theMoroccan administration on how to most effectively deal with urban problems,but there will be interesting and indicative lessons to be learned for othernational and city governments in the region.

- 55 -

8.02 The project with its demonstrative character will improve theliving conditions and productive capacities of almost 12,000 urban low-income households, representing some 60,000 people, and will also induceinstitutional, procedural and policy changes in urban development planning,financing and project implementation which will have long-ranging impactson urban development in Morocco. There are, however, some potential risksassociated with the proposed project. Firstly, there is the risk of in-adequate guidance and poor coordination among different agencies which willbe involved in project implementation, and inadequate staffing provisions.These problems have caused complications in project preparation and woulddoubtlessly have a delaying impact in project implementation. However, indesigning the project, special consideration was given to GOM's absorptivecapacities, and the proposed implementation arrangements were devised suchthat the likelihood of coordination problems reoccurring in minimized. Sincethe appraisal mission left Morocco, GOM has devoted much attention to estab-lishing better coordination arrangements for the project, and frequent inter-ministerial coordination meetings have taken place. Also the MunicipalGovernment and the Municipal Council have assumed an active role in arrangingfor project implementation. The new Ministry of Rousing and Regional Devel-opment, MHAT, is better organized than its predicessor, MUHTE, to guide andorganize project implementation. There remains a fairly substantial proba-bility that GOM will not be able to appoint or recruit staff, sufficient innumber and qualification, to ensure successful project implementation. Inthat case, the provisions for technical assistance under the project wouldhave to be increased. Secondly, there is the risk of a potential tendency inthe administration to change technical project concepts which have permittedlow-cost solutions, in favor of more ambitious, albeit costly concepts ofurban development. This would have negative impacts on affordability. Suchtendencies have been repeatedly encountered during project preparation butcould be dissipated through convincing demonstration of effective and afford-able concepts. Post-appraisal evaluation of the new Government has revealedan honest determination within cabinet circles and inside the ministrieswhich will participate in project implementation, to establish a new andmore responsive basis for dealing with urban problems. The need to re-duce towering government subsidies to the urban sector has also been widelyaccepted, and ways and means are being considered on how these subsidies couldbe reduced. The project with its proposed urban development cost reductionsand improved cost recovery mechanisms is therefore welcomed. Especially theMunicipal Council of Rabat has subscribed to the project with its new con-cepts and is actively lobbying in the central government for endorsement andsupport. The probability of the second risk is consequently considered asminimal. Thirdly, there is the risk that land required for project imple-mentation cannot be acquired in time to permit project i'lplementation in theproposed time frame. Three out of five sites remain to be acquired. Should apurchase agreement with the present site owners not be possible within fourmonths, the Government would declare the land as of "utilitee publique," andexpropriate. Subsequent price settlement with the land owners could takeyears, but the Government could utilize the land under provisional terms andconditions, i.e., envoi en possession provisoire. The practicability of suchan approach has been assessed by the Bank; the probability of land acquisition

- 56 -

problems is relatively low. Fourthly, there is the risk of the population ina project area not accepting proposed project details, especially cost re-covery. However, the Governor of the Prefecture of Rabat - Sale and "Lnic< 2a1Council members have already had and continued to have frequent meetings withrepresentatives of the population in the project area to explain and reviewproposed project measures. So far the response by these representatives hasbeen positive. The probability of this risk is considered as fairly minimal.

8.03 During loan negotiations agreement was reached on:

(a) community services equipment to be stationed and ex-clusively used in the 7th Municipal Ward of Rabat(para. 3.09);

(b) the terms and conditions of the conventions betweenGOM and the Municipality of Rebat (para. 3.19), GOMand BCP (para. 4.18), and GOM and RED (para. 5.02);

(c) the format of lease contracts between GOM and projectbeneficiaries and related administrative arrangements(para. 4.06);

(d) the organizational and procedural arrangements of theProject Implementation Organization (para. 4.08),MHAT's Urban Upgrading Unit (para. 4.10), MF's Unitfor preparing housing finance reforms (para. 4.11),and for MTFP's training center (para. 4.13);

(e) a revolving fund as credit facility for small-scalebusinesses to be established by 1979 (para. 4.17);

(f) measures of effectiveness and organizational arrange-ments for project monitoring (para. 5.12); and

(g) cost recovery mechanisms, related terms and conditions,and compensation arrangements (para. 6.04), and pricingprinciples and associated charges to project benefici-aries (para. 6.10).

8.04 Following prerequisites have been defined as conditions for loaneffectiveness:

(a) issuance of a zoning plan for the project area(para. 3.03);

(b) Government possession and provisional terms andconditions, as provided for under Moroccan legisla-tion (envoi en possession provisioire) of all landrequired for the project (paras. 3.05 and 3.07);

- 57 -

(c) that the conventions between GOM, the Municipalityof Rabat (para. 3.19) BCP (para. 4.18), and RED(para. 5.02) have been entered into by all parties;and

(d) that the Project Directorate be established, properlyequipped and accommodated, and staffed with key per-sonnel (para. 4.08).

8.05 The project is suitable for a Bank loan of US$18.0 m, equivalent,to the Government of Morocco.

ANNEX 1

KINGDOM OF MOROCCO

RABAT URBAN DEVELOPMENT PROJECT

PROJECT SPECIFICATIONS AND DESIGN STANDARDS

Table of Contents

Page No.

Topography and Subsoil Conditions in the Project Area .............. 1

A. Squatter Upgrading . ............................. * .......... 1

B. Experimental Sites and Services/Housing Scheme ............. 4

C. Construction Materials, Equipment and Depots ............... 10

D. Community Facilities ... . ......... ...... .. ..... il

E. Off-Site Infrastructure Rehabilitation and Extension ....... 15

F. Community Services Equipment ..... . .......................... 16

G. Employment Generation Program ...... ................... 17

ANNEX 1Plage 1

PROJECT SPECIFICATIONS AND DESIGN STANDARDS

Topography and Subsoil Conditions in the Project Area

1. The topography of the project area has been formed by the Bou RegregRiver. The river meanders through a 1.5 to 2 km wide valley which has beenfilled with river alluvium over centuries. North and south of this valley,the land surface rises to 80 m over a relatively short distance and continuesthence in gentle undulations as a plateau. This plateau is dissected by wadis(dry river beds). In these wadis stormwater accumulates during rains and dis-charges into the Bou Regreg. The wadis are increasingly deep and have steepslopes as they approach the Bou Regreg. In the project area, there is onesuch wadi (Map IBRD 13051). Subsoil conditions in the project area are char-acterized by weathered calcareous sandstone which is covered by silty, clayeysand of 2 m thickness on average. Douar Doum has developed on slopes of theBou Regreg river valley. These slopes reach 50% in some locations. DouarHajja and La Butte are on the plateau; Douar Maadid has developed on the wadivalley slopes which reach 30%. The proposed industrial zone would be in theBou Regreg valley.

A. Squatter Upgrading

2. Water Supply. Water supply of all project sites is assured by theTakkadoum reservoir located within the project area and by trunk mains servingthe western perimeter of Douar Doum, the northern section of Douar Hajja, andthe northwestern perimeter of Douar Maadid. The capacity of the reservoir andthe trunk distribution mains is sufficient to accommodate future requirementsin the project area. Douar Doum is presently served by eight standpipes lo-cated on the eastern edge of the settlement along Goundafa Road. Each stand-pipe serves approximately 2,100 people within a radius of 250 meters. Thirtyadditional standpipes will be provided in centrally located small communitysquares (placettes). This will reduce the maximum water hauling distance to60 meters (Map IBRD 13054). Each standpipe will serve approximately 450people. The placettes will be provided with three standpipes and a 2 x 2 mbasin for washing clothes covered by a simple roof awning of 10 sq. m. Inaddition, each placette will be equipped with a fire fighting hydrant of100 mm diameter. The distribution mains will be connected to the existing200 mm main along Goundafa Road and will connect the placettes by means of2,500 lin. m of 100 mm asbestos cement pipes which will generally follow theimproved footpath layout included in the project. This network will be sup-plemented by some 360 meters of 80 mm asbestos cement pipes and 9,000 lin. m60 mm pipes along secondary footpaths. Individual connections are not in-cluded in the project. These connections will be installed by RED on demandby the individual plot holders. Douar Hajja and Douar Maadid are presentlyserved by 54 standpipes. Each standpipe serves approximately 750 people. The

ANNEX 1Page 2

existing distribution network will be extended to provide individual connec-tions to the 5,100 plots in both settlements; design standards are based on70 liters consumption per capita per day. The secondary and tertiary distri-bution system will follow the existing road and footpath layout and willconsist of 8,700 lin. m. of 60 mm pipes, supplemented by 80 mm and 100 mmpipes where necessary, to complete the existing secondary distribution system.As in the case of Douar Doum all pipes will be of asbestos cement, except forthe individual connections which will be of plastic pipes. Twenty fire-fight-ing hydrants will be provided from the 100 mm main throughout both settlements.

3. Sewerage. The three squatter settlements have rudimentary seweragesystems built by each community with assistance from the Municipality. Eachsystem handles sewage but not stormwater which drains on the surface, oftencausing heavy erosion. The existing systems are made up of 150 mm concretepipes which are mostly underdimensioned and in addition inadequately aligned,vertically and horizontally. As a result backflows frequently occur causingsewage to accumulate within plots. In Douar Doum, pipes are for the most partuncovered and many are broken causing sewage to seep into alleyways. Allsystems discharge untreated sewage into open terrain along the edge of thesettlements. There are no trunk sewers serving the squatter settlementswith the exception of a partially completed sewer requiring rehabilitationand extension near Douar Hajja. Under the project, each settlement will beprovided with a combined sewerage and stormwater drainage system and trunksewer infrastructure through which sewage will be discharged into a stabiliza-tion pond which is presently under construction within the project area. Thesystem design is based on a five-year storm and a rain intensity of 220 litersper second/hectare with an average run-off coefficient of 0.8 to account forhigh population densities and further impermeabilization of roads and foot-paths. Sewage production is assumed at 80% of per capita water consumption.In Douar Hajja and Douar Maadid the sewer network would consist of 16,000lin.m. of 250 mm concrete and 1,000 lin.m. of 300 mm concrete laterals whichwill be connected to the rehabilitated trunk sewer. Some 600 inspectionmanholes constructed of precast concrete segments will be installed. InDouar Doum the sewer network will consist of 10,800 lin.m. of 250 mm con-crete laterals connecting directly to a 1,500 lin.m. long interceptingsewer. The intercepting sewer will discharge into a trunk sewer to be con-structed under the project, which will connect to the stabilization pondvia a stormwater overflow, discharging stormwater directly into the BouRegreg River. About 360 inspection manholes will be installed. In eachsquatter settlement plot connections with 150 mm concrete pipes will beinstalled by the community through self-help arrangements.

4. Internal Roads and Pedestrian Facilities. The present circulationpattern of Douar Doum is entirely pedestrian and consists of narrow parallellanes, on average 1.2 meters wide between blocks of dwellings. These lanesare often steep (up to 45% slopes) and are for the most part unsurfaced.14,000 lin.m. of lanes serving Douar Doum will be paved and stepped on steepslopes to stop the erosion which is already undermining the foundations ofmany dwelling structures. The lanes will be provided with gulleys connect-ing to the underlying pipes for stormwater drainage. In addition, a 4 meterwide footpath network, 2,250 lin.m. in length, will be provided to link

ANNEX 1Page 3

the placettes and provide horizontal access across the settlement (MapijRD 13054). Most sections of this system will be aligned along existinglanes and paths to limit required dwelling demolition to a minimum. Thefootpath system will be constructed of a 15 cm crushed stone base with adouble bituminous surface treatment. In order to provide access for publictransport, garbage collection, fire fighting, emergency vehicles, and generalmunicipal services, some 2,000 lin.m. of distributor road will be constructedof which 560 meter represent upgrading of existing unsurfaced roadways.A perimeter road will be constructed along the lower edge of the settlementwith a carriageway width and standards which meet basic requirements foraccess of essential service vehicles and public transport. Three levels ofservice will be provided: a 6 meter carriageway for two way vehicle flowsfrom Goundafa Road to the existing and proposed elementary schools; a 5meter carriageway for one way vehicle flows and passing of stationary vehicleswhere the perimeter road serves existing shops within the settlement; and a4 meter carriageway for the rest of the alignment along the perimeter ofthe settlement. All roads will be constructed of a 20-25 cm crushed stonebase with a 5 cm asphalt wearing course. In all cases, footpaths of 1.5 mwidth will be provided on each side of the carriageway, with a 10 cm cementstabilized soil pavement covered with a single bituminous surface treatment.The present circulation pattern in Douar Maadid and Douar Hajja is essentiallypedestrian and many lanes are already surfaced. However, several lanes re-quire upgrading and will be surfaced. Both douars will be provided withroad access for emergency vehicles, garbage collection and public transport.Saome 3,600 m of road will be provided in and around both douars of which1,000 m existing distributor road in Douar Hajja will be rehabilitatedas part of the proposed perimeter road. Further 1,500 m of road will beconstructed to link the partially completed section of the southern linkroad between Douar Maadid and the proposed Industrial Estate. The Douar Hajjaperimeter road is designed as one way single carriageway. Two internalaccess road will be constructed within Douar Maadid along the alignments ofexisting lanes to limit required demolition of dwellings to a minimum. Eachroad will be 6 meters wide without separate footpaths, to allow two wayaccess for emergency and garbage collection vehicles. All road will beconstructed of a 20-25 cm crushed stone base with a 5 cm asphalt wearingcourse.

5. Electricity and Street Lighting. There is presently no electricitysupply within Douar Doum; Douar Hajja is almost completely served with streetlighting; approximately 60% of Douar Maadid is served with electricity.Street lighting will be provided in Douar Doum and Douar Maadid along theproposed road and footpath system. In all three douars each plot will beprovided with a metered electrical connection on request by plot holders whowill pay for this service. Demand of 1 KVA per plot with a 0.5 distributionfactor has been assumed in designing the systems.

6. Commercial Installations. Each settlement has developed activeinformal trading and repair and small-scale manufacturing activities. DouarDoum has some 460 small businesses distributed along Goundafa Road; DouarHajja has developed a small commercial center within the settlement comprising

ANNEX 1Page 4

some 370 small businesses; and Douar Maadid has internal markets and ashopping frontage along its northwestern perimeter, including some 570 smallbusinesses. In all douars existing commercial installations will be up-graded. In Douar Doum, new commercial installations will be provided onthe 10 placettes to be established and improved shopping facilities/servicesector installations along Goundafa Road. The open market at the easternend of Douar Doum will be provided with road access, and some 60 small

covered shops with 12 m usable floor space will be constructed.

B. Experimental Sites and Services/Housing Scheme

7. The Experimental Sites and Services/Housing Scheme on the La Buttesite (Map IBRD 13052) is designed to provide accommodation for 900 householdswhich will have to be relocated from Douar Doum, Douar Hajja and DouarMaadid as a result of squatter upgrading measures. The scheme will providefor a range of alternative accommodations in size, cost and location, andsupporting community and infrastructure services. Land utilization has beenlimited to areas with slopes not exceeding 15% in order to avoid high devel-opment costs. The site layout comprises 12 hectares of land; the distributionof land use is shown in Table 1.

RABAT URBAN DEVELOPMENT PROJECT

TABLE 1: EXPERIMENTAL SITES AND SERVICES/HOUSING SCHEME

LAND USE DISTRIBUTION

Land Use Hectares Percentages

Residential 5.9 49.2

Community Facilities 1.7 14.2

Commercial 0.7 5.0

Open Space 1.2 10.0

Circulation 2.5 21.6

TOTAL 12.0 100.0

ANNEX 1Page 5

8. Interna' Roads and Pedestrian Zones. A central spine road of 650 mlength with secondary feeder roads of 600 m length will provide access toremergency vehicles, garbage collection and delivery. Buses will be routedalong the central spine which is designed as a two way facility with a 6 metercarriageway and 2 meter wide footpaths. The secondary feeder roads will beone way, with passing bays, with 4 meter carriageways and a 2 meter widesidewalks. Ail roads will be constructed of 30 cm. crushed stone base with adouble bituminous surface treatment. Individual plots will be grouped alongpedestrian ways of 4 meters width and a total length of 5,500 m; they will beconstructed of 15 cm gravel base with a central 2 meter single bituminoussurface treatment. Shops and community facilities will be clustered aroundpedestrian spaces of varying widths constructed to the same standards as thesidewalks. Other pedestrian zones will be gravelled only.

9. Water Supply. Each plot will be provided with a water connection.The site will be equipped with 5 fire-fighting hydrants. The specificationfor the water distribution system are similar to those outlined for up-grading the douars. Two 200 mm diameter feeder mains will be installed tosupply the site from the existing 200 mm main along Goundafa Road. The dis-tribution system will comprise:

Diameter Length(mm) (m)

Distribution main 60 2,600Distribution main 100 750Distribution main 180 1,000Feeder main 200 800

10. Sewerage. The site as a whole will be provided with a combinedsewerage amd stormwater drainage system designed to specifications which aresimilar to those adopted for the squatter settlements. Each plot will beprovided with a sewer connection. The sewerage network will comprise:

Diameter Length(mm) (m)

House connections 150 2,000Laterals 250 3,200

300 1,250Connectors 300 400Trunk sewer 300-700 2,650

Some 200 inspection maholes will be installed.

ANNEX 1Page 6

11. Electricity and Street Lighting. The design assumption for the

electricity system is 1 KVA per plot with a distribution factor of 0.5. Two

transformer stations are planned to meet expected demand. The distribution

of low tension (110-220V) current to reach household will be through over-

head cables. Street lighting would be provided along vehicular routes and

in pedestrian areas throughout the site.

12. Residential Plot Options. Three different residential plot types

will be provided in the Experimental Sites and Services/Housing Scheme.

Each plot will be provided with basic services, comprising water and sewer-

age and electricity connections. The three alternative plot sizes and their

distribution are:

Type Frontage Depth Area Number Percentage

(m) (m) (sq.m.)

A 5 x 12 60 520 57.8

B 5 x 14 70 300 33.3

C 8 x 10 80 80 8.9

Total 900 100.0

For each plot type a special house design has been established. Initially,

core units will be constructed. For plots of Type A and B core units are

identical and have 16.8 sq. m of covered area (Sketch IBRD 18086); for plot

Type C the core unit provides for 17.7 sq. m covered area. Each core unit

includes one room and a sanitary cubicle with a bucket flushed toilet.

The core unit will be located within the plot adjacent to the public foot-

path, leaving the rear of the plot for the provision of additional rooms and

courtyard. In addition to expansion rearwards, the dwelling units are also

designed to expand one story vertLcally, access being provided by inde-

pendent internal staircases to be realized after completion of the ground

floor (Sketches IBRD 18077 and 18L98). Vertical and horizontal extensions

will take place according to the individual owner's phasing requirements.

On plots of Types A and B, the core unit can be expanded horizontally to

3 rooms and to a maximum of 6 rooms with vertical expansion. On plots of

Type C the core unit can be extended to 4 rooms horizontally with a maximum

of 8 rooms with vertical extension; all plots will be demarcated by a con-

tinuous wall, 0.5 m high, designed to support the future extended dwelling

envelope.

13. Commercial Installations. Two commercial areas and local shopping

clusters will be provided within the scheme. All shops will be within

easy walking distance of all residential plots. The proposed distribution

of commercial floor space is as follows:

ANNEX 1Page 7

KINGDOM OF MOROCCORABAT URBAN DEVELOPMENT PROJECT

Experimental Sites and Services! Housing Scheme

PLOT TYPES A + B5.00 X 14.00 = 70 M2

WITH CORE UNIT

PLOT TYPE C8.00 X 10.00 = 80 M2

WITH CORE UNIT

World Bank - 18086

ANNEX 1Page 8

KINGDOM OF MOROCCORABAT URBAN DEVELOPMENT PROJECT

Experimental Sites and Services/ Housing Scheme

HOUSING DEVELOPMENT STAGES

World Bank - 18077

KINGDOM OF MOROCCORABAT URBAN DEVELOPMENT PROJECT

Experimental Sites and Services/ Housing Scheme

suS~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~C t '

EXAMPLE OF NEIGHBORHOOD CLUSTERs s u s, > ~~~~~~~~IN FINAL DEVELOPMENT STAGE

ANNEX 1Page 10

Number Unit Area Total Area(sq. m) (sq. m)

Small shops/workshops 350* 12 4,200Bread ovens 5 120 600Steam Baths 3 250 750Grain mill 1 250 250Covered market 1 1,400 1,400

TOTAL 7,200

* of which 120 units would be constructed under the project.

C. Construction Materials, Equipment and Depots

14. Construction materials and equipment would be prefinanced andprocured under the project, and made available to households in the projectarea for improving or for extending their homes. Materials and equipmentwould be stored and available at two depots to be established at thebeginning of the project implementation period. One depot would be locatedon La Butte to serve households in La Butte and Douar Doum; a second depotwould be located on the edge of Douar Hajja to serve households in DouarHajja and Douar Maadid. Each depot would require some 2,000 sq.m. of land,and would comprise 500 sq.m. covered area for storage of equipment andmaterials, 50 sq.m. covered area for administration offices and 1,450 sq.m.

open area for storage. The depots would be sold at the end of the projectperiod. Total requirements for materials have been assumed as follows:

Percentage of Average ValueHouseholds of MaterialsRequiring per plot

Area Materials (DH)

Douar Doum 70 1,000Dour Hajja 30 2,400Dour Maadid 50 1,800La Butte 30 4,200

150 concrete mixers of 250 liters capacity, 300 wheelbarrows, and 10 hollowblock stone machines would be procured under the project. The equipmentwould be maintained in the depots.

ANNEX 1Page 11

D. Community Facilities

15. Community facilities which will be constructed or rehabilitated,and equipped in the project area include schools, health care installations,and community centers. An overview of existing and proposed community facili-ties in the project area is given in Table 2; their location is shown inMap IBRD 13051.

16. Pre-School Education: M'sids. The M'sid is a religious school pro-viding pre-school education for children, 3 to 6 years of age. There are atpresent 16 M'sids in the project area, representing a ratio of 1 M'sid per750 households compared with GOM's standard of 1 M'sid per 220 households.These 16 M'sids are partially in poor condition and will be rehabilitatedunder the project. The project will also include construction of 34 newM'sids through community self-help, with construction materials and equipmentprovided under the project. I/ Each M'sid consists of a classroom, 40 sq.m.in area, toilets and washing facilities, one room for the Fquih, the teacher,and a playground of 36 sq.m. The total area is about 80-90 sq.m. Designstandards are based on 2 shifts per day with a maximum of 40 pupils perclass. The M'sids will be provided with basic educational equipment,furniture, and playground equipment.

17. Elementary Schools. The current primary school enrollment rateof children in the 7 to 14 years age bracket in the project area is 65%,compared with 88% for Rabat as a whole. The project includes the con-struction of four primary schools required to increase enrollment in theproject area to the Rabat average without augmenting present double shiftusage. This requirement has been determined on the following basis:

1/ This would imply improved distribution of 1 M'sid per 240 households.

RABAT URBAN DEVELOPMENT PROJECT

TABLE 2 - DISTRIBUTION OF COMMUNITY FACILITIES

Douar Doum Douar Hajia Douar Maadid La Butte Project AreaExist- Pro- Total Exist- Pro- Total Exist- Pro- Total Exist- Pro- Total Exist- Pro- Totaling posed ing posed ing posed ing posed ing posed

A. Educational Faci-litiesM'sids 4 10 14 7 7 14 5 9 14 - 8 8 16 34 50

Elementary Schools 1 1 2 1 1 2 1 1 2 1 1 2 4 4 8

B: Health Facilities:Dispensaries - 1 1 - 1 1 - 1 1 - 1 1 - 4 4

C: Communitv Centers~Youth Centers - 1 - - - - - - - 1 1 - 2 2

Center for Educationand Work for YoungWomen (coribined with -_ - 1 1 - _ _ - _ _ - 1 1child.care center !

Voc. Treining Center! | - - _ _ - - _ _ _ _ _ _ - 1 1

ll Located in the Industrial Estate.

Pzl

ANNEX 1Page 13

Present facilities available to children 68 classroomsin the project area (five elementary schools,all located outside the project area).

Average number of pupils per classroom 88 pupils

New school to open end 1977 20 classrooms

Additional facilities under the project- 80 classrooms4 schools (La Butte, Douar Doum, Douar Hajja,Douar Maadid).

Capacity per classroom 40 pupils

Classroom area 60 sq.m.

Gross floor area per pupil 1.5 sq.m.

Total single shift capacity in 1980 6,720 pupils

Total number of children estimated in 16,0007-14 age group in 1980

Number of pupils per classroom assuming 83 pupilsincrease of enrollment ratio from 65% to88%

Each school will be provided with required educational equipment and furni-ture.

18. Youth Centers. There are presently no special installations inthe project area for youth care and guidance. Under the project two youthcenters will be constructed to serve the population in the project area.One youth center will be located in Douar Doum and another on La Butte.Each youth center will provide for a variety of facilities including con-ference rooms, workshops for woodworking, pottery, painting, and photography,libraries and reading rooms, and outdoor sports facilities such as hand-ball,basketball and volleyball. The youth center located in Douar Doum will havea covered area of 900 sq.m. and a sports field of 2.5 ha. in the Bou Regregvalley. The center located in La Butte will have a covered area of 400 sq.m.,and a sports field of 2,800 sq. m. Each center will include toilets, washingfacilities, offices, and accommodation for a caretaker, and will be providedwith required basic equipment, books, and furniture.

19. Center for Education and Work for Young Women. Unemployment amongyoung women in the age group 15 to 29 is particularly high in the projectarea. About 65% of these women are jobless, mostly they have limited andoften no skills because they have either never attended a school or havedropped out early. There is presently no program to upgrade their education

ANNEX 1Page 14

and to provide them with basic skills required for employment. For thisreason a center for education and work for young women will be establishedin the project area. The program to be offered in the center will bespread over three years. First year trainees will be introduced to tradi-tional feminine crafts; a three-month period will be devoted to basictraining in each of the following: embroidery, knitting, crochet, anddressmaking. During the second year more sophisticated patterns will beintroduced, and the young women will be taught to use machines. Duringthe third year trainees will begin to specialize and perfect one craftarea in which they will eventually be able to produce and market items.In their final year of specialization, the trainees will be commissionedto do craft work which MASA would market through local handicraft showrooms.While the program will have its emphasis on craft training, the basiccurriculum will be supplemented by reading, writing and elementary mathcourses aimed at achieving functional literacy. The center will have acapacity to accommodate 250 trainees and will include some 900 sq. m class-rooms and workshops, and 275 sq. m space for administration, sanitary instal-lations, etc. Training equipment and furniture will be provided under theproject. Combined and under joint administration with the training center,there will be a day-care center for pre-school age children. The day-carecenter will have a capacity to accommodate 400 children of female house-hold heads in the project area, thus enabling these mothers to leave theirchildren during the day in good care while at work. There is presently nopossibility in th2 project area to leave children during the day. The childday-care center will cover an area of some 1,200 sq. m and will include aspecial wing where facilities for child development monitoring, such asmeasuring, weighing, and basic medical investigations, will be installed.In the center, services for advising and educating mothers in child carewill be made available.

20. Vocational Training Center. The lack of sufficient skills andexperience is a decisive factor for high unemployment in the project area.A vocational training center will be constructed under the project. Thecenter will be located on a 1.5 ha. plot in the industrial zone (Map IBRD13051), and will offer training programs in construction work, generalmechanics, electrical repair and maintenance for men, and programs intailoring and carpet making for women. The center will have the capacityto train 450 workers annually in the construction sector, 60 in the tech-nical services sector, and 150 in the textile sector. The center willconsist of 4,500 sq.m. of covered area, comprising 10 workshops, 4 class-rooms, a materials depot, administration offices, kitchens, toilets andwashing facilities. Under the project all basic equipment, furniture,tools, and instruction materials required for the proposed training programswill be provided.

21. Health Care Installations. The Moroccan health care system isbased on a three-tier hierarchy. At the bottom there are dispensaries.GOM standards provide for 1 dispensary for a population of 15,000, which

ANNEX 1Page 15

is considered adequate. The main task of dispensaries is preventive medicineservices, health and nutrition education, and family planning advisory service.Dispensaries are also responsible for hygiene inspection in their neighbor-hoods, especially in retail installations, such as food stores and butcheries.Given that the urban poor mostly cannot afford a private physician for healthcounselling, they are critically dependent on dispensaries. Health centersare providing curative medicine services for all those patients who cannoteffectively be dealt with at the dispensary level, and who have been referredto the health center by the dispensary administration. GOM standards providefor 1 health center for a population of 45,000 which is considered adequate if3 dispensaries are available to supplement the center. Hospitals provideservices which are not available at the health center level and which requirehospitalization and intensive care of the patient. This three-tier systemenables GOM to keep the number of hospital beds in manageable proportions.There are presently no dispensaries in the project area with its population of60,000. One health center exists at the eastern edge of Douar Doum. Thishealth center serves the entire 7th Municipal Ward and is not fulfilling itsintended function properly, because it has to provide all services which arenormally provided by dispensaries. A second health center is presently underconstruction in the 7th Municipal Ward and is expected to be operational inspring of 1978. Under the project four dispensaries will be constructed andequipped. Provided the dispensary and health center substructure is suffi-ciently established in the project area, the present availability of hospitalservices and beds is satisfactory with about one bed per population of 450.

E. Off-Site Infrastructure Rehabilitation and Extension

22. Roads. Off-site road infrastructure serving the squatter settle-ments, the proposed Experimental Sites and Services/Housing Scheme, and theindustrial zone will be rehabilitated, upgraded or extended under the proj-ect to ensure essential access to each site for public transport, garbagecollection, emergency vehicles, fire fighting and municipal services.Rehabilitation of existing roads will include reconstruction of road pave-ments and drainage. The length of off-site road infrastructure to be improvedand extended is as follows:

Length CarriaReway(km) (m)

Upgrading 5.7 7Rehabilitation 2.5 7New construction 1.3 6

Total 9.5

ANNEX 1Page 16

23. Sewerage. The partially completed T150 trunk sewer in the wadivalley east of Douar Hajja and Douar Maadid will be rehabilitated andextended, and trunk sewers will be constructed to serve Douar Doum, LaButte and the Industrial Zone. The trunk sewer to be provided for Douar Doumwill cross an erosion trench between La Butte and Douar Doum and will followthe contours of La Butte slopes. Two trunk sewers will be provided to serveLa Butte; they will follow existing road alignments to the stormwater over-flow at the southern entrance of the Industrial Estate. From this pointsewage from La Butte, Douar Doum and the Industrial Estate will flow througha single trunk sewer to the stabilization pond. Sewage from Douar Maadid andDouar Hajja will flow through the rehabilitated and extended trunk sewer inthe wadi valley to the stormwater overflow south of the Industrial Estate andthence to the stabilization pond. The lengths of trunk sewers to be rehabili-tated and extended under the project is as follows:

Construction Length Profile(lin.m.)

Douar Doum 600 0 500 mmLa Butte 2,600 0 300-700 mmLink to Stabilization Pond 300 0 300 mm

Subtotal 3,500

Rehabilitation and Extension

Douar Hajja and Douar Maadid 1,350 T150

24. Electricity. A 20KV feeder main from the main distribution stationin Agdal to distributor stations Rommnani and S.O.M. will be installed underthe project to ensure sufficient off-site supply for the project area; thisimplies about 7,500 m aerial powerlines with ancillary installations.

F. Community Services Equipment

25. In the project area with its population of 60,000 some 45 tons ofgarbage are generated daily; the observed daily per capita garbage productionis about 750g. This rate is normal for urban areas as the one under con-sideration. Some of this garbage is deposited at the fringe of the settle-ments where it can be picked up and hauled to the Municipality's dump. Mostof the garbage, however, winds up either in the settlements where it accumu-lates in the narrow alleys, or at the fringes where no access for collectionvehicles is possible. The proposed road infrastructure under the project

ANNEX 1Page 17

will provide improved accessibility at the fringes. A problem to be resolvedis the collection of garbage inside the settlements. Under the project 30garbage collection hand carts will be provided. These carts will be centrallystationed in the settlements and will be used by individual households tohaul their garbage to 30 collection bins which will also be provided underthe project. These bins will be placed at key points along the fringe roadsor at central locations inside the settlements. Hauling of each household'sgarbage will be declared mandatory, and adherence of each household in thesettlements to this regulation will be enforced by the moqqadems, the Gover-nor's representatives in the settlements. For hauling garbage from centrallocations in the settlements to pick-up points along the fringe roads, 8motorized mini-dumpers will be provided under the project. Five garbagecollection trucks will also be provided. Because of limited equipment avail-ability in the Municipality of Rabat, which seriously curtails the provisionof basic municipal services in the project area, the project also includes theprovision of 3 multi-purpose vehicles with auxiliary equipment for street andsewerage network maintenance, two fire-engines and three ambulances. All thisequipment will be stationed and operated out of a depot in the 7th municipalWard of Rabat. This depot will be constructed and equipped under the project.

G. Employment Generation Program

26. In early 1977 unemployment in the 7th Municipal Ward was estimatedat 4,550 including 2,200 men and 2,350 female household heads. This repre-sented 24% of the potentially economically active population in the projectarea (Table 3). The highest incidence of unemployment was in Douar Doum,i.e., 31% of the labor force, followed by Douar Hajja with 22%, and DouarMaadid with 20%. The overall unemployment for Rabat is estimated at 12.4%.These statistics have been derived from an indepth survey of the labor marketin Rabat by consultants, FGU-Kronberg (FRG) in early 1977. Under the proj-ect, measures would be taken to bring by 1980 the unemployment rate in theproject area in line with the unemployment rate for Rabat as a whole. Thelabor force in the project area is expected to increase to 22,100 by 1980;by the same time unemployment is expected to have increased to 5,200, ifno corrective measures were taken. To reduce by 1980 unemployment in theproject area to the same level as for the rest of Rabat implies that 2,500 newjob opportunities will have to be created.

27. FGU Kronberg has investigated existing businesses in Rabat. Thereare some 1,000 enterprises engaged in industrial, commercial or servicesoriented activities. Ninety percent of these enterprises have less than50 employees, about 7% between 50 and 200, and only about 3% of all enter-prises have more than 100 employes. By far the largest proportion of theseenterprises is involved in various kinds of construction activities, intextile/garment manufacturing, or export oriented handicraft. Some 1,400different businesses have been observed in the project area; these includesmall retail stores and workshops but also some smaller enterprises in theirformative stages. The goods and services offered by these enterprises are ingood demand.

RABAT URBAN DEVELOPMENT PROJECT

TABLE 3: - UNEMPLOYMENT IN THE 7TH MUNICIPAL WARD IN 1977, AND FORECAST FOR 1980

D o u m M a a d i d H a i i a Total

Men Women Total Men Women Total Men Women Total Men Women Total

Labor Force 1977 4,300 1,900 6,200 5,200 1,100 6,300 4,800 1,900 6,200 14,300 4,900 19,200

Labor Force 1980 4,900 2,200 7,100 6,000 1,300 7,300 5,600 2,100 7,700 16,500 5,600 22,100

CbservedUaemployment 1977 800 1,150 1,950 900 350 1,250 500 850 1,350 2,200 2,350 4,550

ExpectedUnemployment 1980 900 1,300 2,200 1,100 400 1,500 600 900 1,500 2,600 2,600 5,200

Unemplov-ment per 1977 - - 0.5 - - 0.3 - - 0.4 - - 0.4Family(Average)

EmploymentGeneration 1980 550 600 1,150 650 100 750 250 350 600 1,450 1,050 2,500Target

c» H

ANNEX 1Page 19

28. Particular to Morocco there is an outstanding phenomenon inurban economic activities, i.e. the formation of cooperatives. This canalso be observed in Rabat. In most cases, small enterprises form coopera-tives of painters, masons, metal workers, etc. These cooperatives whichshare equipment, administration, financial management, etc., have provedeffective elements of the urban economy; they stimulate private initiative,improve efficiency and income generation. But in their formative stages thesecooperatives almost always experience problems due to lack of expertise oftheir members in marketing and management, especially financial management.GOM is actively sponsoring the development of urban cooperatives and hasestablished advisory services available to cooperatives through the Office duDeveloppement des Cooperatives, ODCO. ODCO is a division of GOM's Secretariatd'Etat au Plan. Under the project the formation and development of coopera-tives in the project area will be promoted through technical assistance andfinancial assistance. Construction sector related cooperatives will get aninitial boost through their proposed participation in project implementation.But also garment manufacturing and handicraft cooperatives will have goodprospects for quick development, given the demand for the goods they willproduce.

29. In carrying out their investigation of existing businesses inRabat, FGU Kronberg identified enterprises that need to expand but areunable to do so because of space constraints. Several of these enterpriseshave expressed interest in moving into the project area, provided adequatedeveloped land could be made available. Many of these firms have alreadynow a substantial proportion of their workers coming from the project area.Without exception, all firms are engaged in labor-extensive activities. Aninitial plan has been drawn up to accommodate these firms within a centrallylocated Industrial Estate that will be established in the project area (MapIBRD 13051). The Estate will cover Il ha and will be developed such thatabout 8 ha of industrial plots of various sizes from 500 sq. m to 4,000 sq. mwill be available. Site development will include access roads, water supply,sewerage, and electricity supply to meet an expected final demand of 5,000KVA. Initial plans have also been prepared for the formation and/ or furtherdevelopment of some cooperatives in the project area. These cooperativeswill be accommodated in the Industrial Estate as well. The enterprises thatwill move into the Industrial Estate and the cooperatives will have anaggregate demand for about 3.5 ha developed plots. In combination, they offer270 job opportunities today, and they are expected to provide for 2,000 jobopportunities by the end of the project implementation period (Table 4). Withthe potential for 1730 new jobs identified, there remains the need to estab-lish the basis for 770 further new jobs in order to meet the objective ofestablishing 2,500 new jobs by the end of the project implementation period.The basis for these 770 new jobs could either be established in the proposedIndustrial Estate, within the douars or, more likely, in the ExperimentalSites and Services/Housing Scheme at la Butte. Detailed arrangements for all2,500 new jobs will be worked out by the Small Scale Business Promotion Unit.The proposed Vocational Training Center will prepare the jobless to meetskills requirements by the enterprises or cooperatives expected to settle orto expand in the project area. Women and especially graduates of the proposed

ANNEX 1Page 20

RABAT URBAN DEVELOPIMENT PROJECT

TABLE 4: - EMPLOYMENT GENERATION IN THE INDUSTRIAL ESTATE(Already Identified Enterprises/Cooperatives)

Skills Requirements JobOrganizational Skilledf Unskilled/ Opportunities

Activities Form Semi-Skilled Apprentice Existing New Total

1/Djellabah Manufacturing F- 6 6 8 4 12

Carpeting Manufacturing C=/ 135 115 7 243 250

Garment Manufacturing C 35 15 4 46 250

Housing/Building C 180 150 - 330 330Construction

Sanitary Installation C 40 30 - 70 70

Carpentry, Constructionand Furniture Joinery C 50 10 6 54 60

Painting C 30 20 - 50 50

Repair/Production of C 18 12 5 25 30Metal Products

Food Processing F 10 100 60 50 110

Carpet Manufacturing F 200 150 50 300 350

Garment Manufacturing F 55 55 - 110 110

Manufacturing ofLeather Products F 50 20 - 70 70

Metal Work F 60 50 32 78 110

Car/Truck Repair P 50 50 50 50 100

Sanitary Installation F 80 40 18 102 120

Carpentry/Joinery F 70 80 - 150 150

Grain Mill(2) F 10 10 10 10 20

Construction Material/Equipment Dealers (2) F 5 5 10 - 10

Handicraft (10) F 5 5 10 _ 10

Total 1,089 923 270 1,742 2,012

1/ F - private enterprise; C - cooperative

ANNEX 1Page 21

Center for Education and Work for Young Women are expected to form or to joincooperatives.

30. FGU Kronberg has established a first approximation of space, equip-ment and financial assistance requirements by enterprises and cooperatives asa basis for the creation of 2,500 new job oppottunities in the project area.About 45,000 sq. m of developed industrial/commercial plots will be required,mostly in the Industrial Estate; it is expected that the Industrial Estatevill be entirely occupied by 1984. Some 19,500 sq. m new industrial/commer-cial buildings will be required during the project implementation period.Based on broader experience elsewhere in the country and interviews withenterprises and cooperatives it is assumed that on the average equipmentand working capital requirements will represent DH 2,300 and DH 3,600, re-spectively, per new job opportunity to be created. A special survey wascarried out to determine the financial assistance requirements of thoseenterprises that will move into the project area, and of the cooperatives.As a result it is expected that about 70% of all enterprises/cooperativeswill require financial assistance to cover 45% of the capital costs, in-cluding the costs of developed plots, buildings and equipment, and 30% ofrequired working capital. This group will be referred to as Category 1;all remaining enterprises/cooperatives will fall into Category I.I. Cate-gory Il businesses will be mostly in their early formative stages and willdevelop out of existing entrepreneurship within the project area; they willrequire financial assistance to cover 90% of their capital costs, and 60%of required working capital. In specific terms it is expected that 50%(50%) of the 45,000 sq. m developed industrial/commercial plots will be re-quired by Category I (Category II) businesses, 70% (30%) of required indus-trial/commercial buildings, 70% (30%) of equipment needs and 70% (30%) ofworking capital requirements for establishing 2,500 new job opportunities.Under the project a line of credit will be established and available tobusinesses in the project area through BRP Rabat. This credit facility hasbeen designed to take full account of the estimated financial assistancerequirements of businesses that are likely to establish or to expand in theproject area.

ANNEX 2Page 1

KINGDOM OF MOROCCO

RABAT URBAN DEVELOPMENT PROJECT

DETAILED COST ESTIMATE

--- DIRHAMS (thousands) ----- ------- US$(millions)-------

Local Foreign Total Local Foreign Total

Item Costs Costs Costs Costs Costs Costs

1. Land 19.020.0 - 19,020.0 4.323 - 4.323

2. Resettlement 216.0 144.0 360.0 0.049 0.033 0.082

3. Site Preparation 583.2 1,360.8 1,944.0 0.133 0.309 0.442

3.1 Contingencies: Physical 87.5 204.1 291.6 0.020 0.046 0.066

Price 45.6 106.4 152.0 0.010 0.025 0.035

Subtotal 3 716.3 1,671.3 2,387.6 0.163 0.380 0.543

4. Detailed Engineering4.1 Personnel 633.5 633.5 1,267.0 0.144 0.144 0.288

4.2 Equipment 13.2 118.8 132.0 0.003 0.027 0.030

4.3 Contingencies: Physical 64.6 75.3 139.9 0.015 0.017 0.032

Price 35.5 41.5 77.0 0.008 0.010 0.018

Subtotal 4 746.8 869.1 1,615.9 0.170 0.198 0.368

5. Cadastral Survey5.1 Personnel 1,019.5 113.3 1,132.8 0.232 0.025 0.257

5.2 Equipment 8.3 75.1 83.4 0.002 0.017 0.019

5.3 Contingencies: Physical 102.8 18.8 121.6 0.023 0.005 0.028

Price 96.7 17.0 113.7 0.022 0.004 0.026

Subtotal 5 1,227.3 224.2 1,451.5 0.279 0.051 0.330

6. Off-Site Infrastructure6.1 Sewerage 1,037.4 751.3 1,788.7 0.236 0.171 0.407

6.2 Roads 2,093.2 2,457.2 4,550.4 0.476 0.558 1.034

6.3 Electricity 1,215.9 1,168.2 2,384.1 0.276 0.266 0.542

6.4 Contingencies: Physical 652.0 656.5 1,308.5 0.148 0.149 0.297

Price 824.8 830.4 1.6-55.2 0.187 0.189 0.376

Subtotal 6 5,823.3 5,863.6 11,686.9 1.323 1.333 2.656

7. On-Site Infrastructure7.1 Water 2,114.3 2,690.9 4,805.2 0.481 0.611 1.092

7.2 Severage 1,918.0 1,388.9 3,306.9 0.436 0.316 0.752

7.3 Roads 3,981.2 4,673.6 8,654.8 0.905 1.062 1.967

7.4 Electricity 3,239.0 3,111.9 6,350.9 0.736 0.707 1.443

7.5 Contingencies: Physical 1,982.8 2,082.9 4,065.7 0.451 0.473 0.924

Price 2,289.6 2,411.6 4,701.2 0.520 0.548 1.068

Subtotal 7 15,524.9 16,359.8 31,884.7 3.529 3.717 7.246

8 Comunity Facilities8.1 Construction 10,471.8 7,583.0 18,054.8 2.380 1.723 4.103

8.2 Equipment 1,048.0 2,445.4 3,493.4 0.238 0.556 0.794

8.3 Contingencies: Physical 1,675.6 1,381.9 3,057.5 0.381 0.314 0.695

Price 2,929.8 2,475.9 5,405.7 0.666 0.563 1.229

Subtotal 8 16,125.2 13,886.2 30,011.4 3.665 3.156 6.821

9. Housing Core Construction 4,272.0 2,848.0 7,120.0 0.971 0.647 1.618

9.1 Contingencies: Physical 427.2 284.8 712.0 0.097 0.065 0.162

Price 582.7 388.5 971.2 0.132 0.089 0.221

Subtotal 9 5,281.9 3,521.3 8,803.2 1.200 0.801 2.001

10. Construction Materials andEquipment

10.1 Materials 3,559.8 3,559.8 7,119.6 0.809 0.809 1.618

10.2 Depots 148.5 121.5 270.0 0.034 0.028 0.062

10.3 Equipmet 53.6 482.9 536.5 0.012 0.110 0.122

10.4 Contingencies: Physical 20.2 60.5 80.7 0.005 0.013 0.018

Price 450.4 476.1 926.5 0.102 0.108 0.210

Subtotal 10 4,232.5 4,700.8 8,933.3 0.962 1.068 2.030

ANNEX 2Page 2

DETAILED COST ESTIMATE (CONTD)

---- DIRHAMS (thousands) ------- US$(millions) …Local Foreign Total Local Foreign Total

Item Costs Costs Costs Costs Costs Costs

11. Construction of CommercialInstallations 2,246.4 1,497.6 3,744.0 0.511 0.340 0.851

11.1 Contingencies: Physical 244.6 149.8 374.4 0.051 0.034 0.085Price 533.8 355.8 889.6 0.121 0.081 0.202

Subtotal Il 3,004.8 2,003.2 5,008.0 0.683 0.455 1.138

12. Community Services Equipment12.1 Equipment 330.6 2,975.4 3,306.0 0.075 0.676 0.75112.2 Depot 385.0 315.0 700.0 0.087 0.072 0.15912.3 Contingencies: Physical 38.5 31.5 70.0 0.009 0.007 0.016

Price 81.9 380.9 462.8 0.019 0.086 0.105

Subtotal 12 836.0 3,702.8 4,538.8 0.190 0.841 1.031

13. Business Development13.1 Plot Developinent 180.0 180.0 360.0 0.041 0.041 0.08213.2 Construction 5,265.0 3,510.0 8,775.0 1.197 0.797 1.99413.3 Equipment 1,725.0 4,025.0 5,750.0 0.392 0.915 1.30713.4 Working Capital 6,750.0 2,250.0 9,000.0 1.534 0.511 2.04513.5 Contingencies: Physical 18.0 18.0 36.0 0.004 0.004 0.008

Price 1,541.3 1,617.1 3,158.4 0.350 0.368 0.718

Subtotal 13 15,479.3 11,600.1 27,079.4 3.518 2.636 6.154

14. Small Scale Business Promotion Unit14.1 Personnel 1,561.2 82.2 1,643.4 0.355 0.019 0.37414.2 Equipment 9.0 81.0 90.0 0.002 0.018 0.02014.3 Operation 52.5 52.5 105.0 0.012 0.012 0.02414.4 Contingencies: Price 326.9 35.3 362.2 0.074 0.008 0.082

Subtotal 14 1,949.6 251.0 2,200.6 0.443 0.057 0.500

15. Project Management15.1 Personnel 4,146.5 218.2 4,364.7 0.942 0.050 0.99215.2 Administration Centers 540.0 360.0 900.0 0.123 0.082 0.20515.3 Equipment 32.5 292.5 325.0 0.007 0.067 0.07415.4 Operation 72.0 72.0 144.0 0.016 0.017 0.03315.5 Contingencies: Physical 479.1 94.3 573.4 0.109 0.021 0.130

Price 1,000.3 136.3 1,136.6 0.227 0.031 0.258

Subtotal 15 6,270.4 1,173.3 7,443.7 1.424 0.268 1.692

16. Technical Assistance16.1 Urban Upgrading Planning 204.8 819.2 1,024.0 0.047 0.186 0.23316.2 Housing Finance Reform 51.2 204.8 256.0 0.012 0.046 0.05816.3 Small Scale Business Promotion 84.0 336.0 420.0 0.019 0.076 0.09516.4 Vocational Training 72.0 288.0 360.0 0.016 0.066 0.08216.5 Equipment Operation and Maintenance 56.0 224.0 280.0 0.013 0.051 0.06416.6 Contingencies: Physical 46.8 187.2 234.0 0.011 0.042 0.053

Frice 103.4 413.5 516.9 0.023 0.094 0.117

Subtotal 16 618.2 2,472.7 3,090.9 0.141 0.561 0.702

GRAND TOTAL 97,072.5 68,443.4 165,515.9 22.062 15.555 37.617

ANNEX 3Page 1

KINGDOM OF MOROCCO

RABAT URBAN DEVELOPMENT PROJECT

INVENTORY OF PROJECT BACKGROUND DOCUMENTS, DATAAND DETAILS AVAILABLE IN THE PROJECT FILE

1. Urban Development in Morroco

1.1 Urbanization in Morocco,Katherine M. Johnson, 1972Ford Foundation

1.2 MOROCCO - Urban Housing and Land Development; Problems andPoliciesIBRD Urban Sector Report, July 1972

1.3 Milieux et BesoinsBulletin d'Information Economique et SocialCentre d'Experimentation, de Recherche et de FormationRoyaume du Maroc, January 1972

1.4 Plan Quinquennal 1973-77Equipements Urbains et RurauxDirection du Plan et du Developpment RegionalRoyaume du Maroc, May 1973

1.5 Les Equipments Structuraux de l'Espace SocialMinistere de l'Urbanisme, de l'Habitat, du Tourisme etde l'EnvironnementRoyaume du Maroc, October 1975

1.6 Regional Development in MoroccoIBRD Special Economic Report, April 1976

1.7 Crise du Logement: Evaluation de l'Ampleur du ProblemeSector Study, March 1977Bureau du Premier Ministre, Royaume du Maroc

1.8 Le Logement au MarocAnnee 3 du Plan Quinquinnal 1973-1977Secretariat d'Etat au Plan, Royaume du Maroc, 1975

1.9 La Croissance Urbaine au MarocMichel Hollard, Universite de Grenoble, 1970

1.10 Le Budget des Municipalites et le Cout de la Croissance UrbaineCentre d'Experimentation, de Recherche et de FormationRoyaume du Maroc, 1971

ANNEX 3Page 2

1.11 Recensement General de la Population et de l'Habitat au Maroc,Secretariat d'Etat au Plan,Royaume du Maroc, 1971

2. Rabat-Sale, the Urban Setting, Problems and Issues

2.1 Schema Directeur d'Amenagement et d'Urbanisme de l'Agglomerationde Rabat-SaleFinal Report + 12 Sectoral ReportsMinistere de l'Habitat, de l'Urbanisme, du Tourisme,et de l'EnvironnementRoyaume du Maroc, 1972 (different months)

2.2 Rabat-Sud, Reconversion des Bidonvilles de Chella, Doum,Maadid - ExtensionMinistere de l'InterieurRoyaume du Maroc, 1971

2.3 Donnees et Programme d'Intervention dans un Bidonville de Rabat,Yacoub al MansourMinistere de l'Interieur,Royaume du Maroc, 1970

2.4 Rapport Economique et Social de la Prefecture de Rabat-SaleMinist3re de l'InterieurRoyaume du Maroc, 1975

2.5 Marges Citadines a Rabat-SaleMarie Renee Chene, 1971Ecole Pratique des Hautes Etudes, Universite de Paris

2.6 Recherche Typologique sur les Habitants des QuartiersSous-Equipes de Rabat, Sale, Temara et KenitraNote de PresentationMinistere de l'InterieurRoyaume du Maroc, 1971

3. The Prolect

3.1 Douar Doum 1976Programme de Developpement Urbain a RabatDocument de PreparationMinistere de l'Urbanisme, de l'Habitat, du Tourisme etde l'Environnement, October 1976

ANNEX 3Page 3

3.2 Douars Maadid et Hajja 1977Project de Developpement Urbain a RabatRapport FinalMinistere de l'Urbanisme, de l'Habitat, du Tourisme etde l'Environnement, April 1977

3.3 Doum 1976, Informations Generales (Technical data)Ministere de l'Urbanisme, de l'Habitat, du Tourisme etde l'Environnement, November 1976

3.4 Zones d'Activites EconomiquesProgramme de Developpement Urbain a RabatMinistere de l'Urbanisme, de l'Habitat, du Tourisme etde l'Environnement, November 1976

3.5 Creation d'Emploi pour la Population de Douar Doum etPlanification d'Une Zone IndustrielleRapport Final, March 1977FGU-Kronberg, Consultants

3.6 Rabat Urban Development ProjectProposed Employment Generation ProgramFinal Report, July 1977Dieter Unverzagt, Consultant

3.7 Rabat Urban Development Project, InfrastructureFinal Report, July 1977Dirk Ossen, Consultant

3.8 Project de Development Urbain a RabatAide-Memoire et Notes de TravailIBRD Appraisal Mission, June 1977

3.9 30 maps in various scales showing the metropolitan area, theproject area, and technical details of infrastructure, sitelay-out and housingMinistere de l'Urbanisme, de l'Habitat, du Tourisme et del'Environnement, June 1977

4. General Background Information

4.1 Small-Scale Industry in MoroccoIBRD Sector Report, September 1975

4.2 The Education SystemSituation, Problems, OutlookMinistere de l'Education, Royaume du Maroc, 1970

ANNEX 3Page 4

4.3 Banque Centrale PopulaireAnnual Reports 1970-1975

4.4 Credit Immobilier et HotellierAnnual Reports 1970-1975

4.5 An Evaluation of Non-Formal Educational Programs forWomen in MoroccoUSAID, April 1977

4.6 Legislative Texts (laws) governing- the organization of local goverument,- urban planning and program implementation arrangements,- housing finance,- land acquisition,- housing programs, and- procurement.

4.7 Les Ressources Budgetaires des MunicipalitesMinistere de l'InterieurRoyaume du Maroc, 1969

4.8 La Fiscalite MarocaineMinistere des FinancesRoyaume du Maroc, 1975

4.9 Ecole d'Adjoints Techniques de l'Urbanisme et de l'Habitat, et1' Institut d'Amenagement UrbainRapports de SyntheseMinistere de l'Urbanisme, de l'Habitat, du Tourisme et de l'Environne-ment, 1976

KINGDOM OF MOROCCO

RABAT URBAN DEVELOPMENT PROJECT

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Aerial View of Douar Maadid

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KINGDOM 0F MOROCCO

RABAT URBAN DEVELOPMENT PROJECT

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KINGDOM OF MOROCCO

RABAT URBAN DEVELOPMENT PROJECT

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X COMM..N'I1Y SERv.CESr~

>1 c P,i~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~.ry~~~~~~~~DyceecneTraued1ny cnerfr-e1 e

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, Prepased ~~~~~~~..- ~~INFRASTRUCTURE;r~~~\k<~~~ (i g pen~~~~~~d coder te be rehabil ototd

r' . g ceeotreetrerr~ ~ ~ ~ ~~t-k--1.beeed~

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10/0/12 C c 2~~~~~~~ ~~~~0 200 300 400 J000 cOi

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IBRD 13052

MOROCCO bbWId.ribB5" -,~,/ = ' ," b , -G 41- / / ,, ' ", '' t'`-'5:' OÇTOBER 1977

IMJL~E~AIMOROCCOPrjet,- >

Rabat Urban Developrnent Project__SITE LAYOUT SCHEME FOR LA BUTTE r - ,- L--`> -

Administrative buildings Site development boundary .-' , p=d s.chool

Residential areas E Existing rouds to be upgraded F .Stores cnd workshops - W r:i Existing roods to be rehabilitated q ,

Ez Pre-elementary schools Paved roods /

_r ,Dispensary Partîolly paved pedestrion zones ,- L//. L J- -,G eGrain miii ve- Elevation contours in meters C .' .i F1' / ' =Z7Bread ovens L W]LLLI-

LilnJSteam borhs t

K IYouth center

Sports field i

Open areas .9'

Construction~6 F1F 10 15moterials depot ~ ~ ~ ~ ~ ~ ~ ~ ii.i~rr

e WiÂiJ~~~~~~~~~~~~~~~JJijJj b *~~~~~~~~~~~~~ETRt -,, (<liii ITTTTT1 9~~~~~~~~~~~~~~~~~~~~~~5

HIi4iTIkiT++i+T'+1 ~ ~ 0 100 20 30 0

i~~~~~a ket~~EE

_______ ____I__ __ _ _ IB RD 13054MOROCCO To Rr otlr OCTOBER 1977

Rabat Urban Development Pro jectI%r, « UPGRADING SCHEME FOR DOUAR DOUM

Existing dwellings mornm Existîng road to be upgradedHC Existing health center e -teF Existing road ro be rehabilitatedQ Proposed placettes Proposed rood construction

Proposed improvements to shops i il l il Footpaths to be improved and widened to 4

mn'and commerce Future footpath

f \A H!2Q2fiJ jfr ViT' - ) L__~~~~~~~~~~~Existing market tobeupgraded urefoah_gFt fStormrp d - y oExisting trunkmwateramain200 250;P ropos'. primary scolg Pr oposed wr ter supply lines f \siormwciferSg< )=pS<>rWr ;ff: r@; )4;/2jg ) ~~~~~~~~Proposed d,spenscry a/M.-`: -\ Markei;

iSt,F'4; E'EttO rJÉ

-F4i r tttProposed yoth cenFer E.istirg ru,k sewer to be rehabilitatedo-t

ExistingsporExi fie d tonbeamproted ,Proposed

trunsksewero_t't.

Proposed electricity distribution network d tûttttt1ton C poe o rt

< 0 C Q it \ 5 NW6~~~~~~~~~~~ret tprjoposed for tree plonigand et ihing /-\/gFF E/T >; 9 3 ~ x jK 7 4;v ) vle

,2srobîlrzatîon 1rrdgroart 55- te-Elevaton contours in meters

l; IjW . J ` -: . -; % X 3, s 3 > À r ) t v / ;5 r Sp o n d s rtc aoeop-a.r-'a 7t ta

. ffi . ~~~~--- R sAD:p"X........7a m ,-- gQ.,\t

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LA BUTTEt?( /l/gi - t ;4/ / 'NFAx -Ç XIeL

-. 4é k2/vn3 > GOpDAFA ROAD /~~~~~~~~~~~~~~~~~~itr ;

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2?0~ 4,d`'`'_' 6no 6 1

LA BUTTE ` '`` ' t ' ` " -e-'` - ' -- '-~~~~~~~~~~~~~~~~~~~~~~~~~~~P

FEET ~ ~ ~ ~ ~ \ . _ e v __ ~ , g l t ,t i -- -- . ..- ,

FE ET 6no soo ^> s ~~~~~~~~~~~~~~~~To stabilization <;~///@W' n ` ` '-J`S pods

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