AfDB Board Approves Debt Relief for Guinea, Loan for Marrakech Water Project
Guinea will benefit from assistance estimated at US $639.2 million in end-December 1999 net present value terms, aimed at reducing the country’s external debt burden to sustainable levels following the country’s attainment of the completion point under the Highly Indebted Poor Countries (HIPCs) Initiative. By reaching the completion point, Guinea also benefits from additional debt cancellation under the Multilateral Debt Relief Initiative (MDRI).
The relief was approved by Executive Directors of the Bank Group on Wednesday in Tunis following the Guinean Government’s satisfactory implementation of nine out of 10 triggers and requirements to reach the completion point, which qualifies the country for debt relief under the two initiatives.
The IMF and World Bank Boards approved the completion points on September 25 and 26, 2012, making the Guinea the 28th Regional Member Country to benefit from irrevocable debt relief.
The Board also approved a loan of US $120 million and US $37 million (about 122 million UA in all) to help finance the Marrakech Region Water Supply Project in Morocco.
This project is the Bank’s 12th operation in the water supply and sanitation sector for the Kingdom of Morocco estimated at US $1.2 billion (UA 800 million). The project will meet the water needs for domestic, tourist and industrial (mining) within the framework of inclusive development and integrated management of water resources.
It will ensure the drinking water needs of about 3 million people by 2030 and meet the needs of the country’s phosphate industry (Office Chérifien des Phosphates, or OCP). The French Development Agency (AFD), the National Electricity and Drinking Water Authority (ONEE) and OCP will contribute to the funding of the project which will be implemented over a period of five years.
The Board commended the Bank’s management and the project team for the project’s relevance and the quality of the evaluation report.