The European Investment Bank (EIB), the European Union's financing institution, is providing EUR 14 million to the Kingdom of Morocco for the repair and upgrading of breakwaters and quays, along with the improvement of operational safety, at five of the country's ports: Tangiers, Larache, El Jadida, Essaouira and Sidi Ifni. The works will be carried out by the Ports Directorate of the Ministry of Equipment, Housing and Town and Country Planning. The project forms part of the Kingdom of Morocco's National Economic and Social Development Plan 2000-2004.
Commenting on the operation, EIB Vice-President Philippe de Fontaine Vive said: "This is the fifth loan made available by the EIB for Morocco's ports sector. The development of port infrastructure is essential to the country's economy in terms of both facilitating Morocco's international trade (98% of which passes through its ports) and fostering the activity of private companies in the fisheries and logistics sectors. I therefore believe that this project chimes perfectly with the objectives of the new Facility for Euro-Mediterranean Investment and Partnership (FEMIP) launched by the Bank last October, one of whose priorities is to create an environment favourable to the growth of private enterprise.
Set up following the Barcelona European Council (15 and 16 March 2002) and inaugurated in October 2002, FEMIP's top priority is to promote private sector development (especially SMEs) and support projects helping to establish a propitious climate for private investment (economic infrastructure, health and education schemes). Endowed with EUR 8-10 billion up to end-2006, FEMIP's ultimate goal is to help the Mediterranean Partner Countries (MPC) meet the challenges of economic and social modernisation and enhance regional integration in the run-up to the creation of a Euro-Mediterranean free-trade area planned for 2010. Between October 2002 and May 2003, new operations worth over EUR 1.5 billion were approved under FEMIP, more than 35% of which targeting private sector development.
The EIB has been involved in EU-Morocco financial cooperation since 1978. It has advanced some EUR 2.5 billion for key projects contributing to the development of the Moroccan economy, notably providing a total of EUR 126.5 million for modernisation of the country's ports (Agadir, Casablanca, Jorf-Lasfar, Kenitra, Mehdia-Kenitra, Mohammedia, Nador, Safi and Tangiers). In addition, the EIB has supported projects such as the first EU-Morocco power grid interconnection via the Strait of Gibraltar, high-voltage electricity transmission facilities and power supplies to rural areas, upgrading of inter-regional and international telephone networks, and large-scale water management schemes (sewerage systems in several coastal towns, irrigation of farmland in the Doukkala Plain, etc.). It has also helped to finance SMEs in the productive and cooperative sectors through global loans intended particularly for facilitating joint ventures between Moroccan and European operators. Morocco is the third-largest beneficiary of EIB loans amongst the Mediterranean Partner Countries.