World Bank Joins Morocco to Improve Transportation Networks

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Rural Roadways and Urban Systems to Benefit

Morocco’s commitment to enhanced public access through improving public transportation and roadways was underscored in two recent events. The World Bank recently agreed to assist in Morocco’s efforts to undertake an extensive overhaul of its public transportation network to serve its growing urban population. More than 60% of Moroccans now live in cities, and there are chronic complaints of traffic tie-ups, dislocations caused by tramways in Rabat and Casablanca, and lack of sufficient public facilities. At the same time, Morocco’s Transportation Ministry announced plans to upgrade local and rural roads.

Part of the challenge is the lack of planning and management of public transport systems. The World Bank has been active in the transportation sector for several years. In 2011, it awarded a $136.7 million Development Policy Loan (DPL) “to improve the sector’s governance and increase urban transport and infrastructure. This was coupled with regular technical assistance for the Moroccan government’s transport strategy, along with research to deepen its knowledge of the sector.”

The current allocation is a grant of $200 million to upgrade the quality and management of urban transportation systems. Given that the government of Morocco is implementing its regionalization plan devolving more local decision-making to local authorities, this provides timely and critical support to local municipalities that “have struggled to provide good roads, and with the limited resources and capacity they have to manage public transport.”

As detailed in the World Bank’s announcement, “The transport program  will focus on cities of over 100,000 inhabitants in nine regions, aiming to strengthen the capacity of local authorities to plan and monitor public transport, centrally and locally. A central goal is to improve the quality of urban transport services, with a large reduction in travel time. This program, a Program for Results (PforR), will disburse funds only when milestones agreed upon in advance are completed.”

world bank 1Marie Francoise Marie-Nelly, the World Bank Maghreb Country Director, noted that “An efficient urban transport system is essential for urban mobility, which will underpin the development of Moroccan cities. Improved public transport systems will mean increased productivity and better access to economic opportunities and key services such as health and education, particularly for the most disadvantaged citizens.”

The Moroccan government has projected that financing for the urban transport sector alone will require $3 billion over the next ten years. “The government’s goal is two-fold: to improve the sector’s management and make it financially sustainable; and to build a web of urban transport corridors within larger cities. The Bank will support the government’s plan with expertise and global knowledge.”

On the Back Roads

The announcement of more funding for urban transportation came as the Moroccan government’s Equipment and Transportation Minister Aziz Rabbah spoke in the Chamber of Deputies (Parliament) on the country’s plans to upgrade and modernize rural and local roadways. Of a total highway budget for 2016 of approximately $6 billion, more than $4 billion will be spent on rural and isolated areas in the next seven years.

In line with the country’s National Initiative for Human Development (INDH), priority will be given to areas underserved or poorly connected to regional traffic. Out of a need for some 30,000 miles of upgrades, the current program will impact more than 10,000 miles of roads in previously marginalized areas. Minister Rabbah also noted that some $300 million has been allocated for emergency repairs to distressed bridges, since recent engineering studies show that 100 are in critical condition at the present time, with 200 more warranting major attention.

Without this kind of partnership with international institutions, it would be difficult for Morocco to meet the public transportation development challenges of a country that has many difficult and demanding terrains and locations. Given Morocco’s increased emphasis on generating jobs in diverse locations around the country, the need for efficient and cost-effective public transportation and highways becomes even more critical and smart. Diversifying industrial centers will help Morocco meet its climate change goals while ensuring that urban areas do not become too dense, thereby taking steps to avoid a recurrence of the current problems.

What’s All the Fuss about in the Sahara?

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King’s Green March Speech Changes Tempo and Terms of Development

As I remarked in my last blog, there is a new energy in Morocco about the future of the (Western) Sahara as a result of King Mohammed VI’s visit, the extensive projects that were announced, and the commitments he made to the region’s development. Of course, there was the anticipated negative clamoring from the Polisario Front and its supporters, who have done next to nothing to improve the lives of the refugees under their control. It is ironic that they condemned Morocco’s role in the South at a time when the King is ratcheting up the government’s commitment to bring both “deep regionalization” and significant growth to the area.

According to news accounts, these projects will create tens of thousands of jobs, improve local infrastructure, and upgrade access to services for local communities. As importantly, as a result of regionalization, Moroccans living in the Southern Provinces [the South] of Sakia El Hamra Laayoune, Dakhla Oued Ed-Dahab, and Guemim Oued Noon, will have extensive authority running local affairs.

Among the most significant projects are the expansion and construction of a new port facility in Dakhla that will enable greater access by cruise ships to this very attractive area; extension of rail lines from Marrakech to Lagouira (La Güera) south of Dakhla, on the way to Mauritania, opening additional economic links to Africa; enhanced commuter access through new bus facilities; a four-lane highway between Tiznit and Dakhla, opening up the area as a distribution and logistics hub; a centralized training center to support local industries; an entertainment and sports complex; and a new headquarters for the Agency for the Development of the South.

In terms of additional infrastructure, plans include expanded road networks, upgrades to existing air transport facilities, improved community centers, hospitals, clinics, and schools, and a university. The long-term goal is to both enhance the South as a regional center for commerce and industry and make it a viable hub for servicing African markets and projects.

It is estimated that some $7 billion will be spent in the next 10 years in the South, making it a key destination for attracting foreign direct investment (FDI), especially given the country’s preference for private-public-partnerships (PPPs) as a vehicle for large-scale projects – utilizing both technology and finance from reputable partners.

King Speaks to the People and the World

In his speech, King Mohammed was clear about his intentions. “We want to make a radical break with the manner in which Sahara issues have been dealt with so far: a break with the rentier economy and privileges, a break with poor private sector involvement and a break with the mentality of centralized administration.”

He attributed this shift in strategy to a realization that the status quo was not sufficient to achieve the full potential of the South. “I am keen to make sure we provide our fellow citizens in the southern provinces with all the necessary means to enable them to manage their own affairs and show they are capable of developing their region.” The King was clear that his vision for the South transcended politics and would build a strong business-based identity for the region, “to enhance the influence of the Sahara region as an economic hub and a crucial link between Morocco and its African roots.”

Among other projects, the King listed “major solar and wind energy projects,” and connecting Dakhla to the national grid – a critical ingredient in rationalizing the cost of power and the capacity to link to projects in Africa.

Other major projects that were included in the King’s remarks were “major seawater desalination plant in Dakhla and the establishment of industrial zones and facilities in Laayoun, El Marsa and Boujdour,” supported by the necessary legal framework that is business-friendly, encourages local and international investors, and attracts financing needed for these large projects.

He also addressed those who complain of Morocco’s use of resources in the South: “I should like to stress, in this connection, that revenue from natural resources will continue to be invested in the region, for the benefit of the local populations and in consultation and coordination with them.”

The King called for legislation that outlines the reciprocal responsibilities of the national and local governments and “to ensure citizen participation through platforms and mechanisms for permanent dialogue and consultation so that the citizens may fully subscribe to programs and be involved in their implementation. I therefore expect the inhabitants of our southern provinces and their representatives to live up to their responsibilities, now that we have set in place the institutional and development-related mechanisms for them to manage their affairs and cater for their needs.”

This is revolutionary stuff for Arab countries…struggling to recast the social contract that for generations defined the relationship between government and citizens. The King is advocating for a substantive recalibration of citizen participation within the framework of a responsive and accountable government. And he is backing up his vision with concrete steps that will change the face of the Sahara within an economic, social, and political framework that augers well for the future of Morocco.

Sensing Change in Morocco

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What to do with Emerging People Power

Just back from 12 days in Morocco tucked in before Thanksgiving. I hadn’t been back for two years, and if I’d believed some press accounts, I would have expected to find a country straining to find its direction. Yet after more than a dozen meetings, informal chats, and leading a graduate seminar for the Executive MBA program at Al-Akhawayn University in Ifrane (AUI), I can say that those who are overwrought about Morocco’s future should focus more on enabling than second-guessing its intentions.

I have to admit that I’m lucky the in the reach of discussions that I had. People I spoke with came from the government, private sector, NGO and civil society communities, and specialized agencies, as well as the US embassy. There is a common thread of understanding that Morocco must do more, and an equally strong commitment to doing it right. Without surplus funds that bolster economic and fiscal policies in other countries, Morocco has to act decisively and in concert with the global investment community to fund ambitious projects ranging from transportation infrastructure and renewable energies to upgrading its public education system and creating sustainable jobs equitably.

Arriving soon after the King’s Green March speech of November 6, I was struck by how strongly Moroccans supported His Majesty’s messages on territorial integrity, regionalization, and economic development initiatives. There is clearly a great deal of respect for the King, which may go a long way to explaining why there is more emphasis among people I spoke with on getting things done without waiting for the government. There continues to be a general lack of faith in many of the political parties (some 31 contested in the last election) and a concern that the House of Deputies is more a house of disputation than collaboration. I know, it sounds familiar…price of democracy some were saying…no rubber stamps in this process!

King Mohammed VI Celebrates 40th Anniversary of Green March

King Mohammed VI Celebrates 40th Anniversary of Green March

The most common themes discussed were: Morocco’s intentions to fully develop the South (Western Sahara) and proceed with “deep” regionalization; concerns about the need for detailed implementation of regionalization, as well as more capacity-building for local officials, and guidelines describing the respective roles of the elected regional presidents and the walis (appointed by the King); the state of public education, which needs more resources and trained personnel; successes in the manufacturing and renewable resource sectors; and the overwhelming necessity to create more jobs without burdening the state.

These are complex issues; often they overlap and are part of a larger challenge. Where should interventions be prioritized in the education sector in the short term to accelerate qualified job seekers? Do you start with those in the job market, upcoming graduates, dropouts, or those with experience and no degrees? All are concerns, and Morocco is trying to offer multifaceted responses.

Another issue: I was told that middle class Moroccans are increasingly burdened by sending their children to private schools so that they can aspire to higher education abroad or at top schools in Morocco, several of which are English-speaking. This leads to a conundrum on several levels: how do you break the cultural perspective that everyone must have a university degree to be someone? How does one promote technical and vocational training as a path to a good-paying and respectable life? For those children who are qualified for higher education, what is the path to a quality program that rewards achievement and supports future schooling?

Morocco is still struggling with issues regarding languages of instruction – Amazigh (Berber), Arabic, French, and English requirements are not yet clearly defined in school programs, a task made more complicated by the prioritizing of resources to the Amazigh program and by lack of qualified English teachers. Hopefully a new collaboration between AMIDEAST and the Minister of National Education will soon start certifying qualified English language instructors.

Parliament is working on a number of critical bills to help facilitate business development through easier financing; enable broad judicial reforms throughout the system; and deal with thorny issues such as land registration and a national media protocol. It appeared from my brief observations that there is increased emphasis on basic economic and rights issues that are at the top of the country’s agenda. There are also discussions about changing regulations to allow more public-private partnerships, which requires revising current incentive guidelines.

The much anticipated opening this December of Noor I, the flagship CSP solar power facility near Ourzazate, was obviously a hot topic, as it exemplifies the country’s commitment to renewables, which I heard repeated in numerous conversations. From ADEREE to the European Bank for Reconstruction and Development to several entrepreneurs looking for new venture opportunities, there is a buzz about how to leverage Morocco’s growth in renewables into hundreds of jobs in servicing installations both gigantic and household. This is clearly a growth sector throughout the country.

I also want to say a few words about my students – all professionals in fields ranging from engineering to finance to administration, in the public and private sectors. Spending upwards of 12 hours a day with them renewed my confidence in Morocco’s future. They see their country’s shortcomings all too well, as they experience them daily. Yet they are determined, even when personally paying for the degree, to make a difference in their lives and their country. They are sacrificing a lot to become proficient in skills that are a stretch for those emerging from traditional educational systems. I want to acknowledge their hearts…strong and able to grow when challenged.

If Morocco listens, it will hear the future in their voices.