Saudi loan to refurbish hospitals in Marrakesh

The Saudi Development Fund has extended Morocco a $18 million loan to co-finance the refurbishing and equipment of two hospitals in Marrakesh, to make of them teaching hospitals.

The total cost of the project, to be completed by the year 2002, is estimated at about $41.7 million. Nearly $21.5 million will finance construction and rehabilitation works, $2.1 million will be earmarked for feasibility and technical studies and $18.1 million will finance medical equipment purchase.

The extension, rehabilitation and equipment of the hospitals to make of them a school hospital go in parallel with the setting up in the city of a medicine and pharmacy college.

Other institutions, including the Islamic Development Bank (IDB), will contribute to the project's financing. The Organization of Petroleum Exporting Countries will also contribute $8.0 million to partly finance the purchase of equipment.

The loan agreement was signed on behalf of the Saudi fund by Abdel Aziz Bin Mohamed Tourki and by Moroccan Minister of Economy and Finance Fathallah Oualalou.

The Saudi Development Fund had signed with Morocco, before it froze its activities in 1989, eight accords totalling $184.3 million. The fund pledged to contribute another $18.0 million to financing two development projects in Morocco.