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The World Bank for OFFICIAL USE ONLY Report No: PAD3282 Document of The World Bank FOR OFFICIAL USE ONLY Report No: PAD3282 PROGRAM APPRAISAL DOCUMENT ON A PROPOSED LOAN IN THE AMOUNT OF EURO 271.8 MILLION (US$300 MILLION EQUIVALENT) TO THE KINGDOM OF MOROCCO FOR A MUNICIPAL PERFORMANCE PROGRAM-FOR-RESULTS OCTOBER 16, 2019 Urban, Resilience, and Land Global Practice Governance Global Practice Middle East and North Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. Page 1 of 135 CURRENCY EQUIVALENTS (Exchange Rate Effective August 31, 2019) Currency Unit = Moroccan Dirham (MAD) MAD 1 = US$ 0.1032 EUR1 = US$ 0.90571506 FISCAL YEAR July 1 - June 30 CALENDAR YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS ACBP Annual Capacity Building Plan AFD French Agency for Development (Agence Française Développement) CAS Country Assistance Strategy Value Added Tax Special Account (Compte d'Affectation Spécial pour la Taxe sur la CAS TVA Valeur Ajoutée – Part des Collectivités locales dans la Taxe sur la valeur ajoutée) CE Citizen Engagement National Commission of Public Procurement (Commission Nationale de la Commande CNCP Publique) COFOG Classification Of the Functions Of Government CPF Country Partnership Framework DGCL Directorate General of Local Governments (Direction Générale des Collectivités Locales) DGI General Directorate of Taxation (Direction Générale des Impôts) DLI Disbursement-linked Indicator DLR Disbursement-linked Result ECI Inter-municipal Cooperation Institution (Etablissement de Coopération Intercommunale) ESES Environmental Sustainability and Energy Sector ESSA Environmental and Social System Assessment National Urban Transport Fund (Fonds d'Accompagnement des Réformes du Transport FART urbain) Organization Fund for the Modernization of Public Administration (Fonds FOMAP d’Organisation de Modernisation de l’Administration Publique) GDP Gross Domestic Product GoM Government of Morocco GPSURR Social, Urban, Rural and Resilience Global Practice GRM Grievance Redress Mechanism GRS Grievance Redress Service HR Human Resources ICT Information and Communication Technology Consultative group on equity, equality of opportunities, and gender approach (Instance IEECAG de l’Equité, de l’Egalité des Chances et de l’approche genre) IEG Independent Evaluation Group Page 2 of 135 The World Bank Municipal Performance Program (P168147) IFC International Finance Corporation IFI International Finance Institution General Inspectorate of Territorial Administration (Inspection Générale de IGAT l’Administration Territoriale) IGF General Inspectorate of Finances (Inspection Générale des Finances) National Initiative for Human Development (Initiative Nationale pour le Développement INDH Humain) IPF Investment Project Financing M&E Monitoring and Evaluation MMC Minimum Mandatory Condition MoI Ministry of Interior NDC Nationally Determined Contribution NPPC National Public Procurement Committee ONCB Open National Competitive Bidding OPRC Operations Procurement Review Committee PAC Municipal Action Plan (Plan d'Action Communal) Local Governments Support Program (Programme d'Appui aux Collectivités PACT Territoriales) PAP Program Action Plan PDO Program Development Objective PEFA Public Expenditure and Financial Accountability PFM Public Financial Management PforR Program for Results PI Performance Indicator PMU Program Management Unit PNCL National Portal of Local Gouvernement (Portail National des Collectivités Locales) RCP Representative Concentration Pathway SAI Supreme Audit Institution TA Technical Assistance TGR Treasury General of the Kingdom (Trésorerie Générale du Royaume) TPB Three-year Program Budget TVA Value Added Tax (Taxe sur la Valeur Ajoutée) Page 3 of 135 The World Bank Municipal Performance Program (P168147) Regional Vice President: Ferid Belhaj Global Director: Sameh Naguib Wahba Regional Director: Ayat Soliman, Najy Benhassine Country Director: Jesko Hentschel Practice Manager: Jaafar Sadok Friaa, Robert Beschel Augustin Maria, Task Team Leaders: Kolie Ousmane Maurice Megnan Page 4 of 135 The World Bank Municipal Performance Program (P168147) MOROCCO MUNICIPAL PERFORMANCE PROGRAM-FOR-RESULTS TABLE OF CONTENTS I. STRATEGIC CONTEXT .................................................................................................... 13 A. Country Context ................................................................................................................ 13 B. Sectoral (or Multi-Sectoral) and Institutional Context ...................................................... 14 C. Relationship to the CPF and Rationale for Use of Instrument .......................................... 18 II. PROGRAM DESCRIPTION............................................................................................... 20 A. Government Program ....................................................................................................... 20 B. PforR Program Scope ........................................................................................................ 23 C. Corporate Priorities ........................................................................................................... 27 D. Program Development Objective(s) (PDO) and PDO Level Results Indicators ................. 33 E. Disbursement Linked Indicators and Verification Protocols ............................................. 34 III. PROGRAM IMPLEMENTATION ...................................................................................... 36 A. Institutional and Implementation Arrangements ............................................................. 36 B. Results Monitoring and Evaluation ................................................................................... 38 C. Disbursement Arrangements ............................................................................................ 38 D. Capacity Building ............................................................................................................... 39 IV. ASSESSMENT SUMMARY .............................................................................................. 39 A. Technical (including program financial and economic evaluation) .................................. 39 B. Fiduciary ............................................................................................................................ 47 C. Environmental and Social .................................................................................................. 48 D. Risk Assessment ................................................................................................................ 50 ANNEX 1. RESULTS FRAMEWORK MATRIX ........................................................................... 52 ANNEX 2. DISBURSEMENT LINKED INDICATORS, DISBURSEMENT ARRANGEMENTS AND VERIFICATION PROTOCOLS .................................................................................................. 64 ANNEX 3. TECHNICAL ASSESSMENT ..................................................................................... 82 ANNEX 4. FIDUCIARY SYSTEMS ASSESSMENT ..................................................................... 102 ANNEX 5. SUMMARY ENVIRONMENTAL AND SOCIAL SYSTEMS ASSESSMENT ..................... 114 ANNEX 6. PROGRAM ACTION PLAN ................................................................................... 126 ANNEX 7. IMPLEMENTATION SUPPORT PLAN .................................................................... 128 ANNEX 8. INDICATIVE LIST OF MINIMUM MANDATORY CONDITIONS AND PERFORMANCE Page 5 of 135 The World Bank Municipal Performance Program (P168147) INDICATORS ...................................................................................................................... 130 ANNEX 9. LIST OF DIGITAL PLATFORMS AND ICT TOOLS SUPPORTED BY THE PROGRAM ..... 135 Page 6 of 135 The World Bank Municipal Performance Program (P168147) BASIC INFORMATION Is this a regionally tagged project? Financing Instrument No Program-for-Results Financing Bank/IFC Collaboration Does this operation have an IPF component? Yes No Proposed Program Development Objective(s) The Program Development Objective is to improve the institutional and service delivery performance of Participating Municipalities. Organizations Borrower: Ministry of Finance Implementing Agency: Ministry of Interior COST & FINANCING SUMMARY (USD Millions) Government program Cost 780.00 Total Operation Cost 760.00 Total Program Cost 759.25 Other Costs 0.75 Total Financing 760.00 Financing Gap 0.00 Financing (USD Millions) Counterpart Funding 346.00 Borrower/Recipient 346.00 International Bank for Reconstruction and Development (IBRD) 300.00 Page 7 of 135 The World Bank Municipal Performance Program (P168147) Cofinancing - Other Sources (IFIs, Bilaterals, Foundations) 114.00 FRANCE: French Agency for Development 114.00 Expected Disbursements (USD Millions) Fiscal Year 2020 2021 2022 2023 2024 2025 Absolute 59.76 65.54 68.67 63.62 34.21 8.2 Cumulative 59.76 125.3 193.97 257.59 291.8 300.00 INSTITUTIONAL DATA Practice Area (Lead) Urban, Resilience, And Land Global Practice Contributing Practice Areas Governance Climate Change and Disaster Screening Yes PRI_PUB_DATA_TBL Private Capital Mobilized No Gender Tag Does the program plan to undertake any of the following? a. Analysis to identify Project-relevant gaps between males and females, especially in light of country gaps identified through SCD and CPF Yes b. Specific
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