AFRICAN DEVELOPMENT BANK ADB/BD/WP/2014/136 28 August 2014 Prepared by: ORNA/MAFO Original: French Probable Date of Presentation to the Committee Operations/ Development Effectiveness (CODE) FOR CONSIDERATION TO BE DETERMINED MEMORANDUM TO : THE BOARD OF DIRECTORS FROM : Cecilia AKINTOMIDE Secretary General SUBJECT : MOROCCO - COMBINED 2012-2016 COUNTRY STRATEGY PAPER MID-TERM REVIEW AND 2014 COUNTRY PORTFOLIO PERFORMANCE REVIEW* Please find attached the above-mentioned document. Attch. cc. : The President * Questions on this document should be referred to: Mr. J. KOLSTER Regional Director ORNA Extension 2065 Ms. Y. FAL Resident Representative MAFO Extension 7301 Mr. V. CASTEL Chief Country Economist ORNA/MAFO Extension 6572 Mr. O. BRETECHE Principal Portfolio Officer ORNA/MAFO Extension 6533 SCCD:C.H AFRICAN DEVELOPMENT BANK COMBINED REPORT COUNTRY STRATEGY PAPER (2012 -2016 CSP) MID-TERM REVIEW & 2014 COUNTRY PORTFOLIO PERFORMANCE REVIEW MOROCCO Editorial Regional Director: J. KOLSTER, Regional Director, ORNA Team Resident Representative: Y. FAL, Resident Representative, MAFO/ORNA Design Team: V. CASTEL, Chief Country Economist, MAFO/ORNA O. BRETECHE, Principal Portfolio Officer, MAFO/ORNA D. CHARRIER -RACHIDI, Economist, ORNA S. MANSOUR, Economist, ORNA A. MOUAFFAK, Economist, ORNA Team Members: A. MOUSSA, Electrical Engineer, MAFO/ONEC A. TARSIM, Senior Macro-economist, OSGE.1 B. BEN SASSI, Chief Water and Sanitation Expert, OWAS C. AMBERT, Principal Strategist, OPSM C. MOLLINEDO, Chief Strategist, COPS D. KHIATI, Agricultural Expert, MAFO/OSAN E. DIARRA, Principal Financial Economist, MAFO F. RODRIGUES, Senior Investment Officer, OPSM2 L. JAAFOR-KILANI, Social Development Expert, MAFO/OSHD L. LANNES, Principal Health Economist, OSHD.3 M. BOUZGARROU, Principal Portfolio Officer, ORNA M. EL ARKOUBI, Procurements Officer, MAFO/ORPF.1 M. EL OUAHABI, Water and Sanitation Expert, MAFO/OWAS M. GUEYE, Principal Education Economist, OSHD.2 M. YARO, Financial Management Regional Coordinator, ORPF.2 O. BEN ABDELKARIM, Chief Education Expert, OSHD.2 P. MORE NDONG, Senior Transport Engineer, MAFO/OITC R. MAROUKI, Chief Agricultural Economist, OSAN T. RAJHI, Chief Training Expert, EDRE.0 W. DAKPO, Principal Procurements Expert, ORPF.1 W. RAIS, Principal Financial Analyst, MAFO Reviewers A. A. BA, Resident Representative, BIFO R. KANE, Resident Representative, CMFO M. NDONG NTAH, Resident Chief Country Economist, ORNA S. KAMARA, Principal Portfolio Officer, DIRA/ORWA K. EGUIDA, Principal Portfolio Officer, SNFO C. CALVOSA, Country Risk Officer, FEMA K. ABDERAHIM, Country Risk Officer, FEMA K.HASSAMAL, Energy Expert, ONEC.2 -i- uuu AFRICAN DEVELOPMENT BANK COMBINED REPORT COUNTRY STRATEGY PAPER (2012-2016 CSP) MID-TERM REVIEW AND 2014 COUNTRY PORTFOLIO PERFORMANCE REVIEW MOROCCO ORNA/MAFO August 2014 Translated Document TABLE CONTENTS TABLE CONTENTS ...................................................................................................................... i LIST OF ACRONYMS ................................................................................................................. iv CONVERSION RATES ................................................................................................................ v FISCAL YEAR ............................................................................................................................... v Executive Summary ........................................................................................................................ vi I. Introduction ............................................................................................................................. 1 II Country Context and Developments ........................................................................................ 1 2.1 Political Developments ................................................................................................................. 1 2.2 Economic and Social Developments ............................................................................................. 1 III. CSP 2012-2016 Implementation and outcomes ....................................................................... 4 3.1. Country Development Context .................................................................................................... 4 3.2 Bank’s Positionning ...................................................................................................................... 5 3.3 Resource Allocation ..................................................................................................................... 5 3.4. CSP Implementation Status ......................................................................................................... 6 3.5. CSP Implementation Results ....................................................................................................... 6 3.6 Other Effects of the Strategy ........................................................................................................ 8 3.7. Implementation of Paris Declaration, Accra Agenda for Action and Busan Partnership commitments ........................................................................................................................................... 10 IV. Country Portfolio Performance Review ........................................................................... 10 4.1 Current Portfolio ....................................................................................................................... 10 4.2 Portfolio Monitoring and Evaluation ......................................................................................... 11 4.3 PPIP Implementation Status ...................................................................................................... 13 4.4 Bank Group Performance ......................................................................................................... 13 4.5 Country Performance Outcomes Based on the Questionnaire on Portfolio Quality ................. 13 4.6 Conclusions of Meetings with Stakeholders ............................................................................... 14 4.7 Revised PPIP .............................................................................................................................. 14 V. Experience and Lessons ..................................................................................................... 14 5.1 Bank Group ............................................................................................................................... 14 5.2 Government ............................................................................................................................... 20 5.3 Partners...................................................................................................................................... 20 VI. Conclusion and Recommendations .................................................................................... 20 6.1 Summary of Conclusions ........................................................................................................... 20 6.2 Key Recommendations .............................................................................................................. 20 Annex 1: Results Monitoring ...................................................................................................... 21 Annex 2: Implementation of the 2012-2013 Lending Programme ............................................ 23 Annex 3: Potential Lending Programme (2014-2016) and Scenarios ..................................... 25 Annex 4: CSP Results Framework Monitoring Matrix for 2014-2016 ................................... 26 Annex 5: Key Social Indicators .................................................................................................... 34 Annex 6 : Key data on Ongoing Bank Group Portfolioo Operations as at 30 June 2014 ........ 35 Annex 7: Scoring of the Indicators of Public Window Active Projects in 2014 ........................ 36 -ii- Annex 8: Monitoring of Development Progress and Results ................................................... 37 Annex 9: Implementation Status of the Country Portfolio Performance Improvement Plan 2013 ................................................................................................................................................ 38 Annex 10: 2014 Project Portfolio Performance Improvement Plan........................................ 41 Annex 11: Main Donors in Morocco ........................................................................................... 43 Annex 12: Team ............................................................................................................................ 44 Annex 13: Subsidiary Funds Financed by the Bank and Located in Morocco ........................ 45 Annex 14: Conclusions of the Detailed Analysis of Fiduciary Risks ......................................... 46 Annex 15: Importance of the Role of the Country Office (MAFO) at Each Stage of the Operations Cycle of its Portfolio in Morocco .............................................................................. 48 Annex 16: Endnotes ...................................................................................................................... 49 -iii- LIST OF ACRONYMS AFD French Development Agency AfDB African Development Bank AGTF Africa Growing Together Fund AMDL Moroccan Agency for Logistics Development ANPME National Agency for the