Date of Submission to Coordination Unit:

A. GENERAL INFORMATION

1. Activity NameIMPROVING INFRASTRUCTURE SERVICE DELIVERY AND PPPs IN MOROCCO

2. Requestor Information Name: Mr. Mohamed Boussaïd Title: Minister for Economy and Finance

Organization and Address: Ministry of Economy and Finance of the Kingdom of Morocco

Bd Mohammed V

Quartier Administratif Chellah – Rabat, Morocco

Telephone: +212 537 760 661 Email: ministre@finances.gov.ma

3. Recipient Entity Name: Mr. Mohamed Boussaïd Title: Ministry of Economy and Finance

Organization and Address: Ministry of Economy and Finance of the Kingdom of Morocco

Bd Mohammed V

Quartier Administratif Chellah – Rabat, Morocco

Telephone: +212 537 760 661 Email: +212 537 760 661

4. ISA SC RepresentativeName: Ayat Soliman Title: Practice Manager, GSU11

Organization and Address: The World Bank, 1818 H Street NW, Mailstop J6-601, Washington, DC 20433

Telephone: +1-202-458-7441 Email: asoliman@worldbank.org

Name: Ahmed Attiga Title: IFC Head, Advisory Services in MENA

Organization and Address: IFC, Amman, Jordan

Telephone: +962-6-568-5060 Email: aattiga@ifc.org

5. Type of Execution (check the applicable box)√ Type Endorsements Justification

Country-Execution Attach written endorsement from designated ISA

Joint Country/ISA-Execution

Attach written endorsement from

1

April 19, 2017

designated ISA √ ISA-Execution for

CountryAttach written endorsement from designated ISA

This project is a joint World Bank and IFC -executed as the nature of the actions envisaged involves increasing the efficiency of infrastructure spending and mobilizing innovating sources of financing through international technical assistance and implementing PPPs. These actions are meant to rationalize the spending in infrastructure sectors and to maximize the judicious usage of public and concessional resources for infrastructure spending.

The Government of Morocco would like to benefit from Technical Assistance (TA) from the World Bank Group to support implementation of reforms identified in previous diagnostic reports and TA projects, to build local capacities and introduce international best practice through training to ensure sustainability of reform processes.

The World Bank has extensive experience in supporting emerging economies in improving their spending on infrastructures and on mobilizing innovative financing, including through several TA projects in Morocco on public investment management, energy, transports, water, and information and communications technologies (ICT).

IFC as the lead implementer for the PPP component and support will leverage a vast experience and proven track record both regionally and globally in premium service delivery to its clients. Furthermore, staff executing the program bring expert knowledge and skills in PPPs in the MENA region.

The implementation of this TA by the ISAs will be used to provide capacity building and to introduce and share international best practices on management of state owned enterprises (SOEs), public investment management and regulatory reforms, and innovative financing and PPP implementation support. The ISAs analytical tools and approaches are central to the provision of best practices in these areas. While the program is identified as ISA-executed, no program can be executed alone, but in close collaboration and consultation with the client.

The ISAs staff and a roster of experts will implement the technical assistance to promote reform implementation using best practices. They will ensure active and consistent team presence in Morocco during execution and transfer of skills to the concerned Ministries, SOEs, and Authorities by providing training and capacity building. The ISA team will rely on the support of the recipient agency and other stakeholders which will strengthen local involvement and technical capacity.

ISA-Execution for Parliaments

Attach written endorsements from designated Ministry and ISA

2

6. Geographic FocusIndividual country (name of country): Morocco

Regional or multiple countries (list countries):

7. Amount Requested (USD) Amount Requested for direct Project Activities:(of which Amount Requested for direct ISA-Executed Project Activities):

US$ 1,879,100

Amount Requested for ISA Indirect Costs:1 US$ 20,900Total Amount Requested: US$ 1,900,000

8. Expected Project Start, Closing and Final Disbursement DatesStart Date: July 1, 2017 Closing Date: June 30, 2020 End Disbursement

Date:October 31, 2020

9. Pillar(s) to which Activity RespondsPillar Primary

(One only)Secondary(All that apply)

Pillar Primary(One only)

Secondary(All that apply)

Investing in Sustainable Growth. This could include such topics as innovation and technology policy, enhancing the business environment (including for small and medium-sized enterprises as well as for local and foreign investment promotion), competition policy, private sector development strategies, access to finance, addressing urban congestion and energy intensity.

X Enhancing Economic Governance. This could include areas such as transparency, anti-corruption and accountability policies, asset recovery, public financial management and oversight, public sector audit and evaluation, integrity, procurement reform, regulatory quality and administrative simplification, investor and consumer protection, access to economic data and information, management of environmental and social impacts, capacity building for local government and decentralization, support for the Open Government Partnership, creation of new and innovative government agencies related to new transitional reforms, reform of public service delivery in the social and infrastructure sectors, and sound banking systems.

X

Inclusive Development and Job Creation. This could include support of policies for integrating lagging regions, skills and labor market policies, increasing youth employability, enhancing female labor force participation, integrating people with disabilities, vocational training, pension reform, improving job conditions and regulations, financial inclusion, promoting equitable fiscal policies and social safety net reform.

X Competitiveness and Integration. This could include such topics as logistics, behind-the-border regulatory convergence, trade strategy and negotiations, planning and facilitation of cross-border infrastructure, and promoting and facilitating infrastructure projects, particularly in the areas of urban infrastructure, transport, trade facilitation and private sector development.

X

1 ISA indirect costs are for grant preparation, administration, management (implementation support/supervision) including staff time, travel, consultant costs, etc.

3

B. STRATEGIC CONTEXT

10. Country and Sector Issues

(a) Country Issues

Morocco has witnessed major political and institutional developments in recent decades. The country has a population of about 33.8 million and is a constitutional monarchy with an elected parliament. Following the accession to the throne of HM King Mohammed VI in 1999, a series of reforms and new laws were adopted to gradually liberalize and open up the economy, privatize a number of public enterprises, restructure the financial system, and strengthen public governance and the rule of law. Morocco has recently engaged in a new set of wide-ranging political and institutional reforms in with the adoption of a new Constitution in 2011, which set the basis for a more open and democratic society, a more modern state of law and institutions, greater separation of powers, and increased decentralization. With these positive developments, the country has made important economic and social progress, including significant public infrastructure development (water, energy, ICT, and transport).

Having reached the status of lower middle-income country, Morocco has set its sights on becoming an upper-middle-income country and accelerating its economic convergence with more advanced countries. To that end, major infrastructure projects have been and are being executed, as well as a series of ambitious sectoral strategies covering all sectors of the economy, including energy and mining, water and sanitation, transport and equipment, and ICT. A high quality policy framework and complementary public investment management framework (for instance in infrastructure) would increase the impact and efficiency of investments, invite higher private investment, facilitate faster job creation, and improve the productivity of labor.

However, disparities in access to services and assets persist. In terms of access to basic services (water supply and sanitation, roads), and the quality of those services, rural areas still experience a large gap compared to urban areas. The residents of lagging areas have significantly lower/poorer access to basic services and infrastructure. This comprises peri-urban populations and rural ones. Access to services differs greatly between rural and urban areas, and within urban areas: while access to improved water is close to full coverage in urban areas, it is not there yet in rural or peri-urban areas; access to improved sanitation is lower in rural areas but its converging faster to higher levels; and access to electricity is almost universal in rural and urban areas.

(b) Infrastructure cross-sector challenges

b.1 Public investment management

Public investment is an important lever of the Morocco's development strategy, insofar as it allows to accompany the structural transformation of the national economy through the dynamics of the large infrastructure projects. Public investment plays a key role in regional and local development, but also in reduction of social and spatial disparities and opening up to remote areas. Public investment in Morocco has more than doubled over the last decade, increasing from about US$ 7 billion to US$ 19 billion in the 2006 to 2016 period. An important share of this spending has been devoted to key infrastructure sectors, including roads, ports, railways, airports, electrification, wind and solar energy, drinking water, and sanitation. Public investment is executed by SOEs (around 55%), the State (around 30%), and local governments (around 15%) which include regions, provinces, and municipalities.

The Public Expenditure and Financial Accountability (PEFA) is a methodology for appraising public financial management (PFM) performance. It provides a framework for assessing and reporting on the strengths and weaknesses of PFM using quantitative indicators to measure performance. PEFA is designed to provide a snapshot

4

of PFM performance at specific points in time using a methodology that can be replicated in successive assessments, giving a summary of changes over time. The 2016 PEFA for Morocco analyzed the performance of the Moroccan public finance system and identified a number of shortcomings2, including the following:

Room for improvement in the institutional arrangements: Institutional arrangements comprise several players and could be optimized as to increase efficiency in PIM processes. The main players are the Directorate of Budget (unit in charge of the appraisal and programming of the investment projects), the unit in charge of monitoring the public investment management (PIM) framework, the Directorate of State Owned Enterprises and Privatization (DEPP), the various SOEs, the line Ministries, and the regions, provinces and municipalities.

Limited availability and need for improved monitoring tools: The Ministry of Economy and Finance (MEF) and other Ministries are not endowed with tools to ensure an adequate monitoring the investment projects financed out the general budget.

Need for harmonized project appraisal tools and selections criteria: Currently, each line ministry defined its own criteria. A unified database of investment projects (being at the central , ministerial or local levels ) providing information on projects execution pace and total cost (recurrent cost /capital expenditures) incurred for better programing of the future budget allocations and transparency will increase the efficiency of the public investment.

Soundness of the socio-economic impact of the public investments: The socio-economic performance investment projects remains below the effort and financing spent, compared to the emerging countries where with the same levels of investments higher growth and levels of inclusion rates were achieved.

The implementation of a unified public investment management (PIM) framework will ultimately lead to allocate public resources to projects with the best social and economic returns, in line with the strategic directions of the country policy appears as critical. This will also help improve the average execution of investment budgets, which was only at 63% between 2010 and 2014. The above fits perfectly into the PFM Act No 130-13 adopted on June 2015 which calls from value for money in the public spending performance, including multi-annual programming of public investments, to the extent where it would allow the strengthening of the distribution of the fruits of growth by providing the needed infrastructures to the adequate regions. As an important share of the public investments is implementing by the SOEs, linking the PIM reform with the SOE regulatory reforms will be a key factor of success. This will help to ease the dialogue among the players and ensure a smooth implementation of the new PIM cycle.

b.2 Government’s oversight

The overseeing role of the State on state owned enterprises (SOEs) has its legal basis in article 89 of the Constitution and in the organic law number 65-13 (April 2015) on the conduct of Government’s activities, as well as other legal texts supporting the implementation of this law. The oversight of SOEs by the Ministries with the mandate of doing so (Ministère de Tutelle) is not uniform, and often insufficient. This is due to a number of factors, one of them being the existence of an information asymmetry between the Ministère de Tutelle and the SOEs that does not allow the Ministère de Tutelle to effectively monitor the performance of the SOEs.

This is a problem for infrastructure service delivery as most of these services are provided through SOEs and that there may be space for improving the service delivery efficiency of some SOEs. And this is important for public investment, as a quarter of public investment in Morocco is undertaken by only three infrastructure SOEs: ONEE (12%), ONCF (7%), and ADM (7%).3

Another challenge is the governance of SOEs and the composition of their management boards. International

2 The 2016 Moroccan PEFA did not rate very highly performance indicator on management of public investments. It rated it with a C, with D being the worst score and A the best.3 Another 38% is implemented by three other SOEs not pertaining explicitly to infrastructure sectors: OCP group (18%), CDG group (11%), and Al Omrane group (9%).

5

experience indicates that recruitment, assessment, remuneration, and independence are all desirable features of SOE management to achieve efficiency.

According to the 2016 Court of Auditors report4 on Moroccan SOEs, there are two aspects of Government’s oversight that should be strengthened:

The role of the State in strategic monitoring (pilotage stratégique); and The role of the State-shareholder (Etat-actionnaire)

On strategic monitoring, the problem is that despite sector strategies should be elaborated by relevant Ministries, very often the link between these Ministries and the SOEs they oversee are weak, and the latter end up taking decisions that should in principle be the responsibility of the State. Contracting the relationship between the State and SOEs by defining reciprocal obligations in a negotiated framework has shown to be a useful manner of overcoming – at least partially – this limitation. For example, ONEE and ONCF today have framework contracts (Contrats Programme) in place with the state that last several years.

On the role of the State-shareholder, this relates particularly to the Ministry of Economy and Finance who executes the control of finances of the State on SOEs. The Directorate of State Owned Enterprises and Privatization (DEPP) has a key role in this task. There may be space to strengthen some capacity and legal support so that DEPP can keep inducing change in SOEs, particularly with regards to movements of portfolio and governance. Today, the Ministry of Economy and Finance has started working on the development of a shareholder strategy to manage the assets invested in SOEs through the “active portfolio management” approach, which will need support in order to be implemented. A last point that is necessary to strengthen the role of State-shareholder is improving the quantitative data provided by SOEs, which accounting systems are often non homogeneous, sometimes compromising the quality of the data.

b.3 Private sector participation in infrastructure sectors

Over the past decade Morocco has also invested steadily in expanding or upgrading its infrastructure especially in the energy and transport sectors mostly through public investment. Significant expenditures are still needed in order to maintain, upgrade and increase the existing infrastructure assets, to meet the increased demand associated with demographic trends and economic growth. It is likely that public financing alone would be insufficient to meet these investment needs. Given the tightened budget and the increasing level of debt, finding new resources including the increased use of private sector as well as improving investment efficiency would be critical.

The Moroccan authorities have in the past few years developed a PPP Framework including passing a general PPP law in 2015 with the PPP executive decree, any PPP project must undergo a prefeasibility study. In the current institutional framework line ministries are in charge of developing their PPP projects including undertaking the prefeasibility study, and the PPP unit is in charge of reviewing and approving the studies and subsequently providing project support during tendering/implementation phase.

Several line ministries and public entities have now started considering PPP as an alternative delivery model for part of their pipeline of projects. The Ministry of Transport has started working on a large pipeline of projects ranging from ports, roads, airports and rail. Sectors such as Energy and Irrigation are building on previous track record to structure projects with increased private sector participation. Other sectors with limited experience in this field are also considering projects such as health and education. However, a large portion of these stakeholders lack capacity to build robust frameworks to identify,

4 Cour des Comptes, Juin 2016. Le secteur des établissements et entreprises publics au Maroc : ancrage stratégique et gouvernance.

6

select and assess viable PPP projects as well as implement processes that could support the PPP agenda and streamline the project delivery.

(c) Sector Issues

Infrastructures (energy, ICT, transport, and water) are a key driver of economic growth and social inclusion in Morocco. This country has done considerable efforts in the last few decades to expand access to basic services like electricity, water, roads, and more recently ICT. Despite this effort, important investments will be needed in years ahead to maintain these assets, universalize access, improve the quality of infrastructure services, and keep managing the increasing demand associated with demographic and urbanization dynamics. Consequently, it is imperative to improve the efficiency of current infrastructure operators and spending, as well as to mobilize innovative sources of financing.

Morocco’s ongoing urbanization calls for increased investments in urban infrastructure. Morocco has urbanized very quickly over the last decades and more than 60% of Morocco’s population now lives in cities compared to 35% in in 1970. The urbanization process is expected to continue in the coming decades, with around 70% of the population expected to live in cities by 2035. Morocco’s urban population will continue to grow by more than 400,000 persons per year over the last decade. In order to accommodate this increasing urban population, and to remediate the existing lack of urban infrastructure in many underserved neighborhoods, the current levels of investment in urban infrastructure will need to be increased significantly. In parallel, spatial inequalities in access to infrastructures (the urban versus rural divide, across regions, etc.) will need to be tackled.

Water

Although Morocco has demonstrated admirable progress in improving access to water services, there remain significant challenges in the face of growing urban populations and still underserved rural and peri-urban groups. The rapid growth of Morocco’s coastal cities – in particular Casablanca and Agadir – as well as Marrakesh, have put significant strains on basic water supply. While there is likely scope for considerable rationalization of current water supplies through customer demand management, improved network management and enhanced water recycling, there are nonetheless a number of high profile water supply projects anticipated, including desalination and water conveyance facilities.

In terms of basic service provision, while an estimated 99% of urban population have access to piped water services, coverage in rural areas and some peri-urban communities remains primarily based on community standpipes. Providing household connections remains a major challenge. Another critical area is to improve access to sanitation, for which a National Sanitation Plan is being used, and a rural plan is under preparation. But the heavy investments required to be done by municipal multi-service utilities will also put them under high financial pressure. Modernization of irrigation is also a major agenda given problems of groundwater depletion and continued export growth, and Morocco has with Guerdane a track record for implementing the first PPP in irrigation worldwide with the support of IFC advisory.

Energy

Morocco’s power sector has experienced transformational changes during the last 20 years, evolving from a vertically integrated public monopoly to a current hybrid single buyer model characterized by the strong involvement of the private sector in power generation, and distribution in big cities. Currently, there are a range of models for power generation: from privately owned and financed for coal plants, to privately owned but mostly financed with public sector IFI debt for wind and solar projects, all the way

7

to publicly owned (by ONEE) and financed for some older assets. ONEE has a monopoly over transmission and is the single buyer and wholesaler to distribution companies; it also distributes power in smaller cities and rural areas. In large cities, distribution is undertaken by private companies under concession contracts.

Morocco is pursuing the liberalization of the energy sector triggered by law 13-09, which granted the possibility for private operators to develop renewable energy projects. The electricity market in Morocco is mature and, as such, a regulating agency is needed to ensure fair competitiveness, continuity of service and compliance by the electricity operators with regulatory requirements. This resulted in the development of law 48-15 related to the regulation of the electricity sector and the creation of ANRE. This future agency aims to accompany the profound changes and the future developments in the electricity sector, increase the attractiveness of the electricity sector for the private sector, ensure competition, transparency and the proper functioning of the free electricity market, while progressively lessening public financing burden on renewable energy infrastructure.

Transport

The development of the roads network has been a priority for Morocco up to today. Significant results have been achieved, particularly regarding the extension of the roads network. In order to improve the efficiency of the roads sector, a progressive transition should take place, going from the initial phase of developing the network to a new one in which the focus is on managing and maintaining this network. Private sector participation for efficiency purposes is particularly important in this regard, notably through performance-based contracts through PPPs for Road networks. Decentralized maintenance, including via rural microenterprises involving local population for preventive maintenance, is also an important challenge in this regard.

While the sectoral Ministry is in charge of roads, Autoroutes du Maroc (AdM) is the SOE in charge of developing and managing highways in Morocco. It currently is in a precarious financial situation of AdM (stemming from a high level of debt, exposure to foreign exchange risk, insufficient revenues given current toll prices, etc.), and would need to be improved in the next few years through a restructuring that is under discussions. This would allow AdM to directly access international capital markets (i.e. bonds without sovereign guarantee), or allow the Ministry to plan new highways sections via public-private partnerships (PPP). The Road Financing Facility (CFR) is also in the process of optimizing its institutional, technical and financial processes to potentially evolve into a full-fledged road agency in charge of the main network.

In the railways sector, ONCF is the SOE in charge of developing and operating railways in Morocco, is already partly financed by the private sector (bonds in the local capital market, often without sovereign guarantee). ONCF is both considering necessary reforms to access international debt markets, as well as the creation of joint-ventures (JV) between ONCF and private operators for specific business purposes (real estate, maintenance of rolling stock, etc.), mostly to leverage the technical expertise of private actors. ONCF is also looking into a new business model or its operations, through internal restructuring, to create specialized subsidiaries for its different business activities and attract private equity investments.

In addition to the Ministry of Economy and Finance (MEF) and the Ministry of Equipment, Transport, and Logistics(METL), the main actors in this sector are the National Agency of Ports (ANP), the Tangier-Med Special Agency (TMSA), and the Nador WestMed. The port subsector in Morocco has one of the best framework for private sector financing in the MENA region after the implementation of several reforms in the last decade. As a result, the port of Tangier-Med has been carried out as a PPP for operations

8

(while still requiring substantial public investments). The ports of Kenitra, Safi, Jorf Lasfar and Nador West Med that are under construction are following the same business model (or are due to follow it according to the Government plans). The historic public port operator (Marsa Maroc) has recently been privatized through the Casablanca Stock Exchange.

The National Airports Agency (ONDA), the SOE in charge of developing and managing airports in Morocco, is already partly financed by the private sector (bonds in the local capital markets). ONDA is planning to change its organizational structure by creating separate subsidiaries for each of its major airports under management. These entities could then be potentially partly privatized or put under a concession agreement, primarily to attract international partners from the private sector to increase the efficiency of operations and expertise. ONDA is also working with the private sector on potential PPPs for new terminals or airports (Tangier and Marrakech primarily).

Information and communications technologies (ICT)

The Government’s Maroc Numéric 2020 Plan’s objective is to provide a broadband access to 100% of the population by 2020 (compared to 41% in 2015) so as to promote the development of the digital economy and the creation of 125,000 new jobs. In line with this plan, the World Bank is recommending a reform program that is based on several evidences: (i) the level of competition and private investment in the broadband sector is low and the current operators are not on track to meet the Government targets (ii) the sector regulation is both incomplete and inefficient and does not foster competition and investment; (iii) although the Government’s Plan has high investment costs, the Universal Service Funds for Telecommunications is severely underused and mismanaged. In this context, the proposed reform program aims at improving the legal and regulatory framework in order to: increase the level of competition and private investment in the broadband market.

Morocco maintains legal barriers to entry for players who wish to deploy their own infrastructure without radio spectrum auctions. Thus, morocco should encourage the entry of new players on all segments of the market by introducing an authorization or standard license regime (less limiting than a licensing regime requiring competitive bidding and relies on the discretionary power of the State or the regulator) and by simplifying administrative procedures.

Broadband infrastructure (copper and optic fiber) regulation is inefficient. Regulation decisions do exist regarding access to the incumbent operator's local loop, but they are not sufficiently enforced, which brought the ANRT to request authority to impose stronger sanctions with regard to the encountered problems: insufficient on-site controls, slow responses to requests related to the catalogues of ANRT-approved services, absence of civil engineering catalogues. Regulation is also incomplete as no decision exists on regulating the incumbent operator's dark fiber, which implies that negotiations between operators are not regulated and fail. Lastly, access to the networks of alternative infrastructure operators is legally authorized, but not regulated to ensure open and non-discriminatory access to all operators.

9

11. Alignment with Transition Fund Objective

The proposed project aims at increasing the efficiency of infrastructure spending by improving governance and performance of service providers, and to mobilize innovative sources of financing by mobilizing private capital and know-how and fostering competition in appropriate infrastructure sub-segments. The link with the Deauville Partnership is therefore strong, as it is at the heart of two of its three pillars: finance and governance.

This proposal is structured around the following components: (1): Increasing the efficiency of public spending in infrastructures; and (2) Private financing and implementing PPPs in infrastructures.

The thematic areas of the Transition Fund are reflected in this proposal as follows:

Enhancing Economic Governance. The first component covers this thematic area extensively. Component 1 focuses on increasing public financial management soundness by supporting the development of the public investment management (PIM) framework. The broad objective is to increase the efficiency of public investments, of which in between half and two thirds are implemented through state owned enterprises, infrastructure ones being among the biggest ones, as well as to identify viable projects for private sector participation at an early stage. It also aims at improving the efficiency of infrastructure SOEs by increasing accountability between them and the Government. This is to be done by strengthening the oversight and regulatory capacity of the Government, and by diminishing the information asymmetry on SOEs and helping them to improve their performance by fostering key reforms of public service delivery in infrastructure sectors.

Investing in Sustainable Growth. This proposal covers this thematic area extensively, particularly through component 2, which aims at mobilizing private investment and expertise for infrastructure service delivery by enhancing access to finance and fostering competition policy in selected infrastructure segments and implementing PPP projects.

Competitiveness and Integration. This thematic area is covered through both components, as the ultimate goal of this project is to facilitate infrastructure projects that provide infrastructure services of good quality in a cost effective manner, including the various segments of the transport sector that can facilitate trade, and the various infrastructure sectors that are critical for private sector development.

Inclusive Development and Job Creation. This proposal touches in a more indirect manner this thematic area, as it aims at facilitating the universalization of infrastructure services to lagging regions of Morocco that today still do not have access to some of these services: these include broadband, sanitation, household connections for water, or paved rural roads in certain areas of the country.

10

12. Alignment with Country’s National Strategy

The Government of Morocco wants to continue improving the quality and quantity of access to infrastructure services of its citizens, and is conscious that doing so will imply increasing the efficiency of public spending and diversifying the sources of financing.

Improving the manner in which public investment is managed has been a top priority of the Government in recent years. This translates for example in the willingness to deploy a unified public investment management (PIM) framework, but also in recent framework contracts signed between the State and key infrastructure service providers. Another example is the Minister of Economy and Finance’s program to accelerate the performance of state owned enterprises.

On account of fiscal constraints, the Government of Morocco is keen on involving the private sector financing to deliver part of this important program. Moreover, involvement of private sector also brings with it the efficiency and expertise in optimizing designs, accounting for total lifecycle costs and efficient operations and maintenance that would benefit the public sector and improve the level of services to the citizens. To counter dependence on non-tradable sectors and stimulate job creation, the Government of Morocco has embarked on a national strategy to orient the economy towards key sectors, a number of them from infrastructures like transports and logistics for example. One of the most important implementing mechanisms under this strategy is via private participation. In large part due to this diversification strategy, industrial growth has hovered around 3% over the past years. FDI averaged $500 million/ year from 2004 until 2015, reaching an all-time high of $2.5 billion in the fourth quarter of 2015. Between 2010 and 2015 a total of 378 FDI projects were recorded, of a total amount of $18 billion and creating 87,618 jobs. Upgrading existing infrastructure as well as adding new infrastructure will remain key in supporting the economic growth trend in the country.

The proposed application is fully aligned with the new WBG MENA strategy and contributes particularly to its first pillar, renewing the social contract and restoring trust between citizens and the state. The project supports fundamental shifts in policy-making on jobs in Morocco, in a way that promotes more effective protection of the poor and vulnerable; inclusive and accountable service delivery, a stronger private sector that can create jobs and opportunities for the youth. Specifically, this project supports four fundamental shifts of approaches: (i) from a heavy reliance on supply-side jobs interventions (focused on skills) to a more demand-driven, private sector-led approach focused on job creation potential; (ii) from public sector delivery of services to increased reliance on performance-based, competitively recruited service providers (private sector and/or associations); and (iii) from a centralized, top-down approach to policy making, to stronger citizen engagement and accountability in service delivery.

The proposed activity is also line with IFC 3.0 strategy that seeks to expand and create markets where private capital has been less forthcoming and that seeks to also introduce private sector participation. Specific objectives of IFC 3.0 to which this project links include promoting private sector development, scaling up advisory services at the firm and market level as well as at the country and sector level to build capacity and leveraging WB for regulatory reform. IFC has been historically an early partner of Morocco in their PPP program. The IFC advisory team has advised and led an irrigation PPP project at Guerdane, at the time a world premiere in that sector, and has also been supporting with the World Bank the development of the existing PPP law and framework.

11

C. PROJECT DESCRIPTION

13. Project Objective

An increasing demand and a limited fiscal space call for a judicious use of scarce resources for infrastructures. In line with the Kingdom of Morocco’s vision and the MENA Transition Fund objectives, the objective of the proposed project is “to increase the efficiency of infrastructure spending, facilitate the mobilization of innovative sources of financing, and enable the participation of the private sector through PPPs”.

14. Project Components

Significant investments in infrastructure will be needed in years ahead in Morocco in order to achieve its economic growth and shared prosperity objectives, in addition to achieving the sustainable development goals and tackling climate change. This will require improving public spending efficiency, and ramping up private financing for infrastructure, and developing the PPP agenda. In order to address these challenges, the first component of the proposed project focuses on improving the efficiency of public investment in infrastructures, while the second one focuses on private financing and implementing PPPs in infrastructure sectors. In a nutshell, the project will be structured around the following two components and sub-components:

1. Increasing the efficiency of public spending in infrastructures (WB executed)1.1 Developing public investment diagnostic and management tools1.2 Improving the MEF’s regulatory and oversight capacity of infrastructure expenditures1.3 Improving performance of infrastructure executing agencies

2. Innovative financing and implementing PPPs in infrastructures (IFC and WB executed)2.1 Innovative financing and competition for infrastructure SOEs and local governments (WB)2.2 Operationalizing the PPP agenda (IFC)

We now proceed to describe in detail each of the above components and sub-components.

Component 1: Management of public investment (WB executed)

This component will provide technical assistance to support the Ministry of Finance to set up a functional unified Public Investment Management (PIM) framework.  It will also aim at increasing the efficiency of state owned enterprises, as a way of ensuring a judicious use of their resources while providing a service of good quality. It will focus only on SOEs providing infrastructure services - defined as the energy, water and sanitation, transports, and ICT sectors. It will have the following sub-components:

1.1 Developing public investment diagnostic and management tools1.2 Improving the MEF’s regulatory and oversight capacity of infrastructure expenditures1.3 Improving performance of infrastructure executing agencies

1.1 Developing public investment diagnostic and management tools

This sub-component is designed to equip the MEF with tools to better manage public investment. Specifically, it will aim at complementing ongoing activities in the area of PIM:

the Public Investment Management Assessment (PIMA) to be jointly carried out by International Monetary Fund (IMF) and World Bank - before end of September 2017 - which

12

will focus on the diagnosis of the institutions involved in the PIM; a diagnosis of the processes and ex post review of a sample of investment projects including

drafting of an action plan to be financed under the Governance MDTF. This component will focus on the implementation/operationalization of the key recommendations from the abovementioned studies with the view to establish a new PIM cycle with a focus on the investment projects to be executed by the SOEs (sub-component 1.2).

This sub-component will implement the following three activities: (i) unified PIM framework (budget: USD 130,000); (ii) unified investment projects database (budget: USD 250,000); and (iii) change management to implement the PIM framework (budget: USD 60,000).

(i) Unified PIM framework

Based on the detailed findings of the PIMA and the diagnosis of the processes above mentioned, a unified PIM framework will be drafted to clarify the role of the players. Support will be provided to operationalize a unit in charge of monitoring investment projects. The unified PIM framework will allow: (i) the harmonization of investment projects management; and (ii the application if common rules to be enforced all stages of project implementation, from design to ex-post evaluation. The legal framework will need to be clarified to ensure buy-in of the various players, particularly the line ministries and the SOE responsible for investment projects. It will be complemented by the production of guides and manuals, project evaluations technical guidelines and methodologies. Training and hands-on-support will be provided to ensure enforcement/dissemination of the guidelines.

(ii) Unified investment projects database

The unified system aims to operationalize the new PIM framework. More specifically, it intends to: improve the coordination and monitoring of the projects at each stage; enable the various stakeholders to have an up-to-date and comprehensive overview of the implementation of projects; facilitate timely/pertinent decision making process; increase the relevance, the effectiveness and the efficiency of public investment; and promote transparency and accountability. The activities will comprise: (i) the development of ToR for the future database including the various functionalities in line with the provision of the unified PIM framework, (ii) the establishment of a database customized to the Government of Morocco’s requirements, and (iii) the piloting of the database with selected SOEs.

(iii) Change management to implement the PIM framework

Change management efforts will be a key factor of success to create a conducive environment for the transition from the current situation to the new PIM system. Without these, the PIM framework has the risk of not being adopted for key stakeholders, or not being sustainable over time. The basic principle of the Rapid Results Initiative (RRIs) will be applied to create a safe space to experiment, plant new ideas and methods that create new team dynamics and work habits among the various players before institutionalization. It will aim at fostering credible commitment from leaders, coordination and collaboration between departments, Ministries, and SOEs.5 The activities under this topic will comprise, leadership trainings, coaching, facilitation, and workshops to lift the various constraints that could prevent achieving the common goal of efficiency and effectiveness of the investment projects.

1.2 Improving the MEF’s regulatory and oversight capacity of infrastructure expenditures

5 See World Development Report 2017 notions of Credible Commitment, Coordination and Cooperation to ensure policy implementation and fostering behavior change.

13

This subcomponent (budget: USD 200,000) will support the Ministry of Economy and Finance to strengthen its capacity to oversee infrastructure and services SOEs and other executing agencies in the energy, water and sanitation, transports, and ICT sectors in the following ways:

(i) introduction of a robust monitoring dashboard to facilitate monitoring, reporting and verification of SOE performance. This tool will aim to better inform MEF on the performance of SOEs with regard to technical, operational, commercial, and financial key performance indicators, and assess the challenges and bottlenecks faced by Morocco in transitioning to competitive provision of infrastructure and public services; and

(ii) provision of support in the increase of professionalization of select infrastructure and public services SOEs via: (a) the identification of their specific needs in terms of capacity building activities based on the above-mentioned assessment; (b) design of said recommended activities (trainings, workshops, toolkits, etc.) based on identified needs, international best practices, and existing capacity building material; and (c) delivery of these capacity building activities to the relevant human resources. Topics covered are likely to cover revenue and expenditure management, demand and supply management, governance and performance focus, and energy efficiency, among others.

(iii) Support to MEF to improve its oversight capacity on infrastructure spending undertaken by specific Ministries, local governments, and other entities investing in infrastructure sectors.

1.3 Improving performance of infrastructure executing agencies

This subcomponent (budget: USD 459,100) will support the MEF and selected infrastructure executing agencies (energy, water and sanitation, transports, and ICT) to shed light on areas in which efficiency can be improved (be it technical and operational, commercial, or financial). This will be done with performance assessments when needed, or by providing specific support to improve certain aspects of performance on a need basis for specific infrastructure executing agencies.

In the electricity and water sectors, for example, the current framework contract (Contrat Programme) between the Government of Morocco and the national operator (2014-2017) will come to its end in a few months. It is thus a critical moment to take stock of the successes of this contract, and to lay the ground for what will happen afterwards – be it through the preparation of a new framework contract or in any other regulatory manner decided by the authorities. This sub-component could support the transition period following the end of this framework contract looking at the current financial, operational and institutional situation, and assist in preparing an action plan outlining the required measures to ensure its financial stability for the period 2018-2021. This could be done through a study that aims at identifying required measures to increase revenues, reducing operational and investment costs, and identifying the benefits from a corporate modernization policy.

Staying in the electricity, water, and sanitation sectors, there are a number of multi-sector sub-national operators that provide these services to about two thirds of Moroccan households. While the challenges faced by these operators and their performance varies, most of them are under increasing financial stress given the investments they are to undertake in sanitation – the bulk of electricity and water supply investments have already been executed and financed. This sub-component could analyze the investment and operational costs of sanitation of these operators, and propose solutions to optimize them and to mobilize new sources of financing to make sure these utilities maintain their already fragile financial equilibrium.

In the transport sector, there are a number of operators in the roads, highways, railways, ports, and airports sectors facing a variety of challenges and with potential scope for efficiency improvements in financial, commercial, and operational aspects. This sub-component could select some of these operators to provide assessments that would cover:

(i) institutional framework and operations (revenue and expenditure management, demand and supply management, governance and performance focus, clean and efficient transport, etc.);

14

and (ii) financial management (annual and medium term financial framework including budgeting,

reporting auditing, liquidity and cash management, asset/liability management).

This would also entail the preparation of financial sustainability plans for each covered entity based on the conclusions of the above-mentioned assessment performance. These plans would have to include actions, reforms, policies, or implementation strategies tailored for each of the select entities to improve its efficiency and viability.

There are also certain Ministries who execute a non-negligible share of infrastructure spending, particularly – but not limited to - on roads, ports, and dams. These will also be eligible for activities aimed at improving their performance under this sub-component. In the Government formed early April 2017, the main Ministries concerned are: Ministry of Equipment, Transport, Logistics, and Water; Ministry of Energy, Mines, and Sustainable Development; Ministry of Agriculture; and Ministry of Interior.

Component 2: Innovative financing and implementing PPPs in infrastructures (IFC and WB executed)

This component will aim at mobilizing commercial financing for infrastructure SOEs and at facilitating private investment in selected segments of infrastructures that can be open to competition, as well as provide support to operationalize the PPP agenda.

2.1 Innovative financing for infrastructure SOEs and local governments (WB executed)2.2 Operationalizing the PPP agenda (IFC executed)

2.1 Innovative financing and competition for infrastructure SOEs and local governments (WB executed)

This sub-component will aim at mobilizing commercial financing for infrastructure SOEs and at facilitating private investment in selected segments of infrastructures that can be open to competition. It will implement the following two activities: (i) Private financing for infrastructure SOEs and local governments (budget: USD 125,000); and (ii) Private sector competition in infrastructure (budget: USD 115,000)

(i) Innovative financing for infrastructure SOEs and local governments

This activity will provide credit advisory services to selected infrastructure SOEs - to be determined during implementation based on interest and relevance - to recommend, inter alia, reforms, approaches, policies, or implementation strategies which would improve the overall creditworthiness and facilitate commercial borrowing (potentially without sovereign guarantee). It will look both at domestic financing – for those SOEs that have not tapped it with all its potential yet – and at international financing for those SOEs that are interested in further diversifying financing sources.

This component will also assess a shareholder strategy for the Ministry of Economy and Finance to manage its assets invested in SOEs. This will be done by reviewing experiences at the international level and suggesting models and actions for implementation. The underlying diagnostic is that the State could obtain higher returns on assets for some of the good performing SOEs, and could then use these additional financial resources for public investment or other needs.

Recognizing that a non-negligible share of infrastructure public investment is undertaken by local governments, this subcomponent will include a review of the local governments regulatory framework for borrowing, and provide technical assistance to update the said framework in light of the ongoing decentralization reforms for improved access of LGs to private financing to ease the burden of fiscal

15

transfers from the State.

(ii) Private sector competition in infrastructure

This activity will focus on some segments of infrastructures in which fostering competition can help to attract private investment, helping to improve the quality and quantity of services, as well as relieving scarce public resources available. This component will pilot this approach focusing on one or more of the following three subsectors: information and communication technology, decentralized electricity generation, and transport logistics. This subcomponent will provide support to:

update and/or strengthen the outdated, inadequate or incomplete legal and regulatory frameworks (laws, decrees and orders - arretés) relative to the specific modalities of operation of these subsectors in order to promote private competition and investment with the objective to lessen public investment burden and

strengthen the capacity of the relevant regulatory authorities of key infrastructure subsectors prone to competition to increase market opportunities and open up private sector engaging in their respective sectors, including through dedicated training programs supporting in their overall missions.

2.2 Operationalizing the PPP Agenda (IFC executed)

This subcomponent (budget: USD 540,000) aims at supporting the Government of Morocco in operationalizing its PPP agenda. With the current growth in the demand for infrastructure and the interest to develop PPP projects and the mandate given to DEPP to support and develop the PPP agenda in the country, DEPP has requested IFC’s assistance in scaling up its PPP activities. IFC expects this component to be a structured initiative around the following three activities: (i) capacity building to improve project identification and selection (budget: USD 40,000), (ii) conducting prefeasibility studies on selected projects (budget: USD 100,000) and (iii) providing transaction advisory services on a few viable pilot projects (budget: USD 400,000) could provide a solid base for a strong and credible PPP program in the country.

(i) Capacity Building Initiatives

In-country Training and Workshops for key public stakeholders (DEPP, Line Ministries, Municipalities, etc.), that would be involved in identifying, selecting and developing potential PPP projects to maturity. IFC will organize one of the following trainings and seminars as well as one sectorial workshops among the following list (budget: USD 40,000). The selection will be based on GoM priorities.

Capacity building initiative Targeted entityFoundation course on PPPs Line Ministries, MunicipalitiesDeveloping and implementing Public Investment Plans DEPP, Line Ministries,

MunicipalitiesUndertaking basic Cost Benefit Analysis of PPPs Line Ministries, MunicipalitiesIdentification, Screening, Selection and Prioritization of PPP projects out of existing Pipeline

Line Ministries, Municipalities

Sectorial Workshops: Transport (ports, roads, air and rail); Municipal Services (Urban Transport, water and sanitation, solid waste; management and water treatment); Social sectors (health and education)

Specific Line Ministry, Municipalities

(ii) Pre-feasibility studies

16

A number of projects that could be pre-identified through this process could benefit from additional upfront pre-feasibility studies that to research necessary data, clarify technical. Legal or institutional details as well as assessing the viability of the business case. Based on available data of current investment plans and sectors, one of the following pre-feasibility studies are expected. The selection will be based on the priority of the government as well as suitability of the sector for private sector participation (budget: USD 100,000).

Sector Potential Project Targeted entityTransport Ports: Kenitra, Jorf Lasfar Ministry of TransportTransport Roads and Highways Ministry of TransportTransport Roads O&M Direction des Routes, Ministry of TransportIrrigation Irrigation Gharb Ministry of AgricultureMunicipal Services City Busses and BRT Municipality of CasablancaHealth Diagnostic Centers and Labs Ministry of Health

(iii) Transaction Advisory work

A few projects that either (i) are well defined and can be taken directly to due-diligence and tendering phase or (ii) have undergone successful pre-feasibility studies can be supported by IFC Transaction Advisory services (budget: USD 400,000). Based on available data of current investment plans and sectors, the following transactions could qualify:

Sector Potential Project Targeted entityIrrigation Irrigation Gharb Ministry of AgricultureMunicipal Services City Busses and BRT Municipality of CasablancaTransport Port of Kenitra Ministry of Transport

17

15. Key Indicators Linked to Objectives

PDO level results indicators

(1) Investment projects subject to the unified PIM framework and its operational tool(2) Infrastructure executing agencies benefiting from performance improvement support (MENA TF

indicator 3.1)(3) Private financing development strategies of SOEs and local governments informed by the project

(MENA TF indicator 3.1)(4) Number of PPP agreements signed (MENA TF indicator 5.1)

PDO indicators 1 and 2 correspond to component 1: the first one to sub-component 1 and the second one to sub-components 2 and 3. PDO indicators 3 and 4 correspond to component 2: the first one to sub-component 1 and the second one to sub-component 2.

Intermediate indicators

Sub-component 1.1: Developing public investment diagnostic and management tools(5) Unified PIM framework adopted(6) Investment projects registered in unified database(7) Availability of detailed reports on technical capacity, time overruns, cost overruns and other

financial performance of investment projects managed through the unified database

Sub-component 1.2: Improving the MEF’s regulatory and oversight capacity of infrastructure expenditures

(8) Performance monitoring dashboard of SOEs established at MEF (MENA TF indicator 3.1.2)(9) Number of capacity building activities delivered to infrastructure SOEs (MENA TF indicator 3.1.2)

Sub-component 1.3: Improving performance of infrastructure executing agencies(10) Number of performance assessments of infrastructure SOEs finalized (MENA TF indicator 3.1.2)(11) Number of infrastructure SOEs performance improvement support actions (MENA TF indicator

3.1.2)

Sub-component 2.1: Private financing and competition for infrastructure SOEs and local governments(12) Number of credit enhancing support activities delivered to infrastructure SOEs (MENA TF

indicator 3.1.2)(13) Number of support activities to improve regulation of infrastructure sub-sectors

Sub-component 2.2: Operationalizing the PPP agenda (IFC executed). (14) Number of people trained in PPP (MENA TF indicator 5.1.3)(15) Number of Prefeasibility Studies Conducted (MENA TF indicator 5.1.1)(16) Number of transaction mandates (FASA) Signed(17) Number of Reports/Recommendations Submitted by IFC (MENA TF indicator 5.1.1)(18) Number of companies prequalified(19) Number of companies bidding

18

D. IMPLEMENTATION

16. Partnership Arrangements (if applicable)

Success of the promoting sustainable infrastructure investments in Morocco is more likely to be achieved if all key local and international partners and donors coordinate and cooperate towards the positive results and sustainability Morocco is looking to receive. Therefore, in implementing the suggested program, The World Bank Group through the WB and IFC will ensure that all due efforts are made to work with the other interested IFIs and complement existing funds, where possible, with other potential donors to guarantee the achievement of the objectives of the current proposal and those of the MENA Transition Fund as a whole.

Component 1.1 of the proposed activity will build on a partnership between the World Bank and the International Monetary Fund in carrying a jointly Public Investment Management Assessment (PIMA).

17. Coordination with Country-led Mechanism/Donor Implemented Activities

Coordination at the global level: In 2011, in response to calls from the international community and from Arab countries themselves, the WBG has stepped up its activity in the MENA region in general as well as in Morocco in particular. Both the WB and IFC were deeply involved in coordinating the Deauville Partnership platform.

Coordination at the Local Level: The WBG is in close contact with the Ministry of Economy and Finance as well as relevant line ministries, other IFIs, funding agencies and the private sector to coordinate the different approaches, to avoid duplication of efforts as well as to establish an attractive environment, and suitable projects to kick start private sector investments in infrastructure projects.

Advancing partner’s cooperation: The MEF has already benefitted of a Capacity Building program by AfDB focused on improving processes inside the DEPP developing a PPP Toolbox. This proposal complements the past and existing support by providing specific and targeted capacity building on subjects such as pipeline assessment, as well as efforts to develop pilot transactions through feasibility studies and transaction advisory. The proposed project will be implemented in coordination with the various donors with which the WBG works in infrastructure and governance sectors in Morocco, which include AFD, KFW, AfDB, EU, and JICA.

The proposed project complements a number of analytical and operational engagements of the WBG in each infrastructure sectors and on governance.

18. Institutional and Implementation Arrangements

Given the World Bank Group’s heavy involvement in the region in topics relevant to each of the activities to be financed, as well as the multiplicity of actors to benefit from this proposal, the Project will be ISA-executed by the World Bank and IFC.

As the ISAs, the World Bank and IFC will be in charge of the overall day-to-day implementation of the project. In particular, all procurement activities, financial management, disbursement monitoring and evaluation will be executed by the World Bank Group according to its own procedures and guidelines. The recipient country (Morocco) agrees with this procedure. The local coordination in Morocco will be undertaken at two levels: i) project Steering Committee; and ii) Operational Teams responsible for the execution of each sub-component.

The project Steering Committee will convene once per semester at least. This advisory Committee will provide

19

support to the ISAs in addressing important matters affecting the progress of the program. It will comprise key stakeholders and will assure local appropriation, enable regular monitoring and accountability checks throughout project implementation. The composition of the Steering Committee for Morocco coordination is as follows:

Ministry of Economy and Finance World Bank IFC

Each subcomponent will be implemented in coordination with an operational team, led by the most relevant stakeholder and composed of all parties that have a role as laid out in each sub-component in the project description section of the proposal. Each activity will be commissioned according to ISA rules. The Operational Teams will work with the ISA for the scheduling of activities, drafting terms of reference, monitoring the work progress and performance of consultants and address any day-to-day operational issues as they arise in the implementation of the project. Operational Teams will regularly inform the Steering Committee.

Component and sub-component Operational team members1.  Increasing the efficiency of public spending in infrastructures1.1 Developing public investment diagnostic and management tools World Bank, MEF1.2 Improving the MEF’s regulatory and oversight capacity of infrastructure expenditures

World Bank, MEF, selected Ministries and/or SOEs

1.3 Improving performance of infrastructure executing agencies World Bank, MEF, selected Ministries and/or SOEs

2. Innovative financing and implementing PPPs in infrastructures2.1 Innovative financing and competition for infrastructure SOEs and local governments

World Bank, MEF, selected Ministries and/or SOEs

2.2 Operationalizing the PPP Agenda IFC, MEF

19. Monitoring and Evaluation of Results

Regular and in-depth monitoring of progress and evaluation of results and outcomes is essential for the success of the project. The ISAs will be responsible for the overall monitoring and evaluation of the project with the support of the technical experts and the Steering Committee.

Throughout the project duration, monitoring and evaluation will be:1. Indicators will be tracked based on the pre-set frequency (at minimum every half year);2. Reasons for deviations from targets will be assessed (if any)3. In case of deviation, corrective actions will be taken and communicated accordingly.

20

E. PROJECT BUDGETING AND FINANCING

20. Project Financing (including ISA Direct Costs6)Cost by Component Transition

Fund(USD)

Country Co-

Financing (USD)

Other Co-Financing

(USD)

Total(USD)

Component 1: Increasing the efficiency of public spending in infrastructures (WB executed)

1.1 Developing public investment diagnostic and management tools

1.2 Improving the MEF’s regulatory and oversight capacity of infrastructure expenditures

1.3 Improving performance of infrastructure executing agencies

Component 2: Innovative financing and implementing PPPs in infrastructures (IFC and WB executed)

2.1 Innovative financing and competition for infrastructure SOEs and local governments (WB executed)

2.2 Operationalizing the PPP agenda (IFC executed)

440,000

200,000

459,100

240,000

540,000

350,0007 790,000

200,000

459,100

240,000

540,000

Total Project Cost 1,879,100 350,000 2,229,100

1 Budget Breakdown of Indirect Costs Requested (USD) Description Amount (USD)

For grant preparation, administration and implementation support:Grant administration 20,900

Total Indirect Costs 20,900

6  ISA direct costs are those costs related to the ISA’s direct provision of technical assistance within the project. Also see Paragraph 47 of the Operations Manual.7 This corresponds to USD 150,000 for the PIMA to be carried out with the support of the IMF and the World Bank, and USD 200,000 for the diagnosis of processes and ex post review of a sample of investment projects to be financed by the on-going Governance MDTF.

21

F. Results Framework and Monitoring

Project Development Objective (PDO): To increase the efficiency of infrastructure spending, facilitate the mobilization of innovative sources of financing, and enable the participation of the private sector through PPPs.

PDO Level Results Indicators*Unit of

MeasureBaseline

Cumulative Target Values** Frequency

Data Source /Methodology

Responsibility for Data Collection

Description (indicator definition etc.)

YR 1 YR 2 YR3 YR 4 YR5

1. Investment projects subject to the unified PIM framework and its related operational tool 

% 0 0 10 20 Yearly PIM investment projects database

MEF

2. Infrastructure executing agencies benefiting from performance improvement support (MENA TF indicator 3.1)

# 0 0 1 3 Yearly

3. Private financing development strategies of SOEs informed by the project (MENA TF indicator 3.1)

# 0 0 1 2 Yearly

4.Number of PPP Agreements signed (MENA TF indicator 5.1)

# 0 0 0 1 Yearly PPP Indicator that is used to indicate the PPP agreements 

signed with the private sector upon which project reaches commercial close

INTERMEDIATE RESULTS

Component 1: Increasing the efficiency of public spending in infrastructures

Unified PIM framework adopted Yes/No No Yes Yes Yes Yearly Decree / Internal order

MEF

Investment projects registered in unified database

% 0 0 15 30 Yearly PIM investment projects database

MEF

Availability of detailed reports on technical capacity, time overruns, cost overruns and other financial performance of investment projects managed through the unified database  

Yes/No No No No Yes Yearly PIM investment projects database

MEF

Performance   monitoring dashboard of SOEs established at MEF (MENA TF indicator 3.1.2)

Yes/No No No No Yes Yearly MEF MEF

22

Number of capacity building activities delivered to infrastructure executing agencies (MENA TF indicator 3.1.2)

# 0 0 1 2 Yearly MEF MEF

Number of performance assessments of infrastructure executing agencies finalized (MENA TF indicator 3.1.2)

# 0 0 0 2 Yearly MEF MEF

Number of infrastructure executing agencies performance improvement support actions (MENA TF indicator 3.1.2)

# 0 0 1 1 Yearly MEF MEF

Component 2: Innovative financing and implementing PPPs in infrastructures

Number of credit enhancing support activities delivered to infrastructure SOEs (MENA TF indicator 3.1.2)

# 0 0 1 2 Yearly MEF MEF

Number of support activities to improve regulation of infrastructure sub-sectors

# 0 0 1 2 Yearly MEF MEF

Number of people trained in PPP (MENA TF indicator 5.1.3)

# 0 10 20 30 Yearly Sign-up sheet at each training conducted Final result to be determined at for completion of 

workshop / training

IFC Decision makers across governmental bodies, institutions and local governments receiving 

support services

Number of Prefeasibility Studies Conducted (MENA TF indicator 5.1.1)

# 0 0 1 1 Yearly Study Delivered IFC (via hired 

consultants)

Number of the pre-feasibility/technical studies intended to be conducted

Number of transaction mandates (FASA) signed

# 0 0 1 1 Yearly IFC Legal Agreement signed for the project to start

Number of Reports / Recommendations Submitted by IFC (MENA TF indicator 5.1.1)

# 0 0 0 1 Yearly IFC PPP project recommendations / Transaction Structure 

Report (TSR) submitted to the client

Number of companies prequalified

# 0 5 5  annualy Project documentation

IFC Number of companies prequalified for participating 

23

in the tenderNumber of companies bidding # 0 3 3  annualy Project 

documentationIFC Number of bids received at 

the tender

24