Japan loans Morocco $ 114,5 mln for northern road project

Japan has extended Morocco a loan worth 12.76 billion Yens (About 1.26 billion DH or US$ 114.5 million) to finance a 120 km-long stretch of the Mediterranean ring.

The loan, carrying a 2.2% interest rate, is reimbursable over 30 years with a 10-year grace period.

The 550 km-long ring, bordering the northeastern Mediterranean coastal areas is destined to facilitate the movement of goods and people, increase economic and trade activity and improve living conditions of some 1.5 million inhabitants. It will also break the isolation of the mountainous Rif region.

With this new loan, which is the largest external financial contribution to the project, the needed financing is completed.

In addition to Japan, other contributors are the European Union, Italy, Spain and the United Arab Emirates. The project total cost is estimated at 3.51 billion DH (US$ 319 mln), in addition to a 32 km-long highway between Tetuan and Fnideq estimated at 600 million DH (US$ 54.54 mln).

The Mediterranean by-pass will be operational by 2005.