Morocco has signed an agreement with the World Bank yesterday, July 18, by virtue of which Morocco will be granted a loan of $150 million planned to develop the housing sector, said a release of the World Bank. One of Moroccan slums in Casablanca.
This project is designed to strengthen the institutional, legal, and fiscal environment for creating a well-functioning housing market, approaching the country's housing sector constraints and needs from a market-based approach.
Above all, it aims increase the access of low-income and severely disadvantaged households to more affordable and decent housing.
Mr. Fathallah Oualalou, Minister of Finance and Privatization, stated, on this occasion, that "this project is the first operation implemented within the framework of the 2005-2009 Cooperation Strategy between Morocco and the World Bank.
Amongst other things, it aims at, boosting development, creating more employment, and increasing the access of poor households to high quality service."
The loan will be divided according to two objectives. The first, $90 million, sets out policy reforms and measures to modernize urban planning standards and regulations; to restructure and refocus public sector housing agencies and enterprises; and to rationalize and simplify real estate taxes and subsidies.
The second part of the loan, $60 million, which is to be granted 18 to 20 months later, will be directed towards improving the efficiency of the residential rental market, and expanding the access of informal sector and low-income households, to market-based housing finance.
Thodore Ahlers, director of the Maghreb department in the World Bank, said that this project is in line with the efforts exerted by the Moroccan government on behalf of poor and marginalised population, as well as a substantial contribution to the National Initiative of Human Development, declared by HM Mohammed VI last May.
By Bachir Niah
© Morocco Times 2005
