Germany to finance Moroccan water and decentralization projects

The German state cooperation bank (KFW) will finance for 63 million DM (around $35 million) projects for drinking water supply and consolidation of decentralization in Morocco.

The four finance agreements were signed on Thursday by Moroccan Finance and Economy Minister Fathallah Oualalou and head of the Maghreb division at the bank, Kohn Doris. The agreements were signed during meetings of the bilateral joint commission, which opened on June 16 in Rabat.

With this new financial contribution, the total German contribution to drinking water projects stands at $247.4 million since 1981.

German official sources had told Map's office in Bonn that financial and technical cooperation between the two countries is not expected to be further reduced and will remain at the same level as last year.

Last year, the German government decided to cut by some 15 million DM the volume of financial and technical cooperation in view of budget constraints.

In 1997, Germany granted Morocco 69.7 million DM in aid, including 52.5 million DM in financial assistance, 17.2 million DM in technical assistance. An important part of the financial assistance (28 million DM) is granted to Morocco as non-reimbursable aid, and the rest consists of long term loans at easy terms (0.75 percent annual interest rates).

The two countries are partners in several projects, mainly in supplying water and electricity to the rural world and controlling pollution, Map reported.

An industrial anti-pollution fund was created to give Moroccan industrialists loans for their projects against pollution. Morocco and Germany are also projecting a program to supply solar-energy electricity in some villages with the participation of the local community.

Their partnership also encompasses agricultural research, health, support to decentralization, vocational training and the struggle against desertification.