Morocco: The “Global Partnership for Output Based Aid” Trust Fund Supports Access To Water Supply and Sanitation Services

The World Bank, acting as Administrator of the Global Partnership for Output-Based Aid Trust Fund (GPOBA), signed on January 29, 2007, a Grant Agreement for an Output-Based Aid (OBA) pilot project to improve access to water and sanitation services in poor communities in Morocco. 

The total amount of the Grant financed by GPOBA, is US$7.0 million through contributions from the International Finance Corporation, the private sector arm of the World Bank Group (US$4.9 million) and the UK Department for International Development (US$2.1 million). The objective of the project is to demonstrate an output-based subsidy mechanism to facilitate access to water and sanitation services for approximately 11,300 low income households in selected peri-urban neighborhoods of Casablanca, Tangiers and Meknès, also targeted by the National Initiative for Human Development (“INDH”).

At present, access to water supply and sanitation services is impaired by high connections costs that are generally unaffordable to peri-urban households. It is expected that the OBA approach will contribute to the development of a sustainable and diversified financing strategy that meets the Government’s service access goals in Morocco’s poor urban areas.

The Grant will be implemented by municipal utility operators, respectively AMENDIS in Tangiers, LYDEC in Casablanca and RADEM in Meknès. The pilot project will be supervised in collaboration with the Ministry of Interior and the Ministry of Finance and Privatization.