The Arab Fund for Economic and Social Development (AFESD) has extended Morocco two loans totaling 72 million Kuwaiti dinars (about 2.27 bln MAD) to help finance two projects.
The loans will finance the rehabilitation of the Mohammed V dam in eastern Morocco, and the construction of the Laayoune expressway bypass in the South.
The first project concerns the raising of the Mohammed V dam to improve the water regulation of the Moulouya River and compensate for the dam’s low storage capacity due to silting problems. This will ensure the supply of drinking water and the development of agriculture in the region.
The Mohammed V dam dates back to 1967. The heightening works will raise its capacity of one billion cubic meters.
The second project is part of the Tiznit-Laayoune-Dakhla road network, which is being constructed in the frame of the implementation of the development model of the southern provinces.
This network, the main road link between the north and the south of the kingdom, will strengthen connection between Morocco and the countries of sub-Saharan Africa.
The loan agreements were initialed in rabat Wednesday by Economy Minister Mohamed Benchaaboun and managing director and president of AFESD Board Abdullatif Yusuf Al-Hamad.
Partnership between Morocco and AFESD has been running for more than four decades, with the first financing operation by the Fund in Morocco taking place in 1975. Since then, AFESD extended the Kingdom $4.4 billion under 72 loan agreements, in addition to 27 grants worth over $19.4 million.