WB approves $150 Mn loan to support Moroccan housing sector
The World Bank's Board of Directors approved, Thursday, a US$150 million loan to support Morocco's efforts in the housing sector and significantly expand the access of the urban poor to decent housing.
The loan will be disbursed in two shares, respectively US$ 90 million after the entry into force of the loan accord, and US$ 60 million in a deadline ranging from 18 to 24 months after the Bank examines governmental measures taken in conformity with the accord.
The loan seeks to contribute to the improvement of the overall functionality of the housing sector, reducing the current market distortions and enabling private sector companies to participate more fully in the production and commercialization of housing goods.
The new project will assist the Government with the definition and implementation of specific policies and programs targeted to the urban poor, and especially the slum-dwellers, that would continue to benefit from public subsidies, the Bank said in a release.
The reforms supported by the loan aim to strengthen the institutional, regulatory and fiscal environment of the housing sector, through modernizing urban planning standards and regulations; restructuring and refocusing public sector housing agencies and enterprises; and rationalizing and simplifying real estate taxes and subsidies, noted the release.
The project also aims to increase access of low income households to more affordable and higher quality housing, by expanding urban slum upgrading and social housing programs; improving the efficiency of the residential rental market; and expanding access of informal sector and low-income households to housing finance.
The proposed operation supports the second strategic objective of the new Morocco Country Assistance Strategy (CAS 2005-2009), approved by the board of directors last May 19. It aims at providing improved access to quality services for the poorest and most marginalized parts of the population. Besides, it directly supports the CAS specific goal, under the second strategic objective, of reducing slums and increasing access to affordable housing for the poorest segments of the population.
