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This activity provided technical assistance funding for the transition process from ONEP (Morocco's Office National de l'Eau Potable) to a small-scale operator in the first PPP to use an output-based aid approach for the delegated management of Jorf el Melha service area.
ONEP considered this pilot project as the most promising management model for water services management and extension in rural areas.
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This activity financed a study tour from senior officials from selected Tunisian institutions to learn about the lessons learned and good practices of the Morocco Output-Based Aid pilots in the water and sanitation sectors.
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This project will played a critical role in testing the first public‐private partnership for the efficient technical and financial management of water distribution in rural areas. Project results helped determine subsequent organization of water services management in rural areas, an important issue for Morocco's water sector sustainability and a focus of World Bank dialogue with the Government of Morocco.
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This activity supported support the testing of a new management model for the scale-up of an OBA pilot to provide access to piped water to poor families in rural Morocco.
Activities included:
- Analysis of the PPP contract and evaluation of the first few months of operation in Jorf El Melha. This analysis provided lessons to help adapt future tender documents for similar pilot operations.
- The selection of firms and preparation of the tender documents of three similar small- scale PPPs with an OBA approach for the management and extension of water supply service (and possibly sanitation) in other areas of Morocco.
In the first semester of 2014, the consultant delivered a standard bidding document and model of contract for the delegation by ONEE (ex. ONEP) of water supply management and extension through small-scale PPP using OBA and adapting these documents to three pilots in El Brouj, Larache and Safi.
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This activity suppported the expansion of access to water for poor households in rural areas of Morocco through technical assistance to scale up the implementation of OBA water schemes based on the delegation by national utility ONEP of the provision of water services to small-scale private operators.
Focus was on the three following activities:
1) Collect initial lessons learned from setting up the first OBA rural water pilot launched in Jorf El Melha area, in terms of the contract structure, promotion strategy and optimal risks allocation, to maximize the potential interest of local investors and competition for future similar projects;
2) Scale up the proposed approach in 3 to 5 additional projects, ensuring that this new scheme is duly tested over a variety of local conditions and private partners, thereby reducing the risk that local specificities or the poor performance by one private investor lead to wrongful conclusions over the feasibility of the approach, and the end of ONEPs plans for rural OBA;
3) Help ONEP develop a broader nationwide strategy based on generalizing OBA for expanding water supply in rural areas through house connections.
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This is the Arabic-language version of the Morocco Water and Sanitation video, a project that benefitted more than 52,000 residents in low-income communities.
أسلوب المساعدات المستند إلى النواتج يجعل من مراقبة خدمات المياه أولولية بالنسبة لأكثر من 52 ألف أسرة مغربية.
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Rabat, February 5, 2007 – The World Bank, acting as Administrator of the Global Partnership for Output-Based Aid Trust Fund (GPOBA), signed on January 29, 2007, a Grant Agreement for an Output-Based Aid (OBA) pilot project to improve access to water and sanitation services in poor communities in Morocco.
The total amount of the Grant financed by GPOBA, is US$7.0 million through contributions from the International Finance Corporation, the private sector arm of the World Bank Group (US$4.9 million) and the UK Department for International Development (US$2.1 million). The objective of the project is to demonstrate an output-based subsidy mechanism to facilitate access to water and sanitation services for approximately 11,300 low income households in selected peri-urban neighborhoods of Casablanca, Tangiers and Meknès, also targeted by the National Initiative for Human Development (“INDH”).
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Two new OBApproaches papers in English and French present the design and initial results of Morocco’s output-based aid (OBA) pilots in the water sector.
Output-Based Aid in Morocco (Part 1): Extending Water Services to the Poor in Urban Areas
Morocco is a middle-income country with good water infrastructure that provides access to safe drinking water and sanitation to the majority of the urban population.
In 2005, Morocco made it a priority to extend service to poor peri-urban settlements, and encouraged operators and local governments to reduce connection fees for their inhabitants. These connection fees had been priced at marginal cost.
The government and the operators of water utilities in Casablanca, Meknès, and Tangiers subsequently requested a grant from GPOBA to pilot the introduction of performance-based subsidies.
The aim was to encourage service expansion, using an innovative OBA approach.
Initial results show that this approach is helping to refocus service provision on the households, which has increased accountability, strengthened partnerships between local authorities and operators, and made monitoring of service delivery a priority.
The World Bank is now working with the government to plan a scale-up program.
Output-Based Aid in Morocco (Part 2): Expanding Water Supply Service in Rural Areas
Since the mid-1990s, Morocco has made big strides in developing access to potable water in rural areas.
The National Water Supply Company, ONEP, has developed an important network of standpipes in rural communities and over 87 percent of the rural population has access to a source of drinking water.
Many households are now asking for domestic connections, but ONEP’s fixed costs make service provision to smaller communities through the development of domestic connections a loss-making business.
To serve these populations better, ONEP is piloting Morocco’s first public-private partnership to subcontract water service provision and management in rural areas, using an affermage-type contract .
During the first years of the ten-year contract, the private operator will receive performance-based subsidies from ONEP under an output-based aid (OBA) approach. This will allow the operator to break even early enough to develop a profitable business within the existing tariff structure.
If successful, this model for rural water supply could be scaled up in other small towns and surrounding rural areas, thus presenting business opportunities for the Moroccan private sector while enhancing access to piped water services for the poor.