Morocco: OBA Subsidies to Water & Sanitation Connections in Poor Peri-urban Areas The GPOBA pilot and the full scale INMAE project in the Greater Casablanca Christophe Cluzeau (LYDEC) Alain Mathys (Suez Environment)

Background: Lydec 30 years concession contract started on August 1st, 1997 Management of 3 public services : water sewerage electricity Delegated authority : Regional Authority of Greater Casablanca Total population : 4,5 million Population without adequate access to water and sewerage : close to 1 million (145,000 households)

 in urban areas  in rural areas INMAE objective : household connections for 145,000 families before 2010 INMAE project is integrated into the National Initiative for Human Development (INDH)

Types of low income settlements Urban Rural

The GPOBA pilot 2 neighborhoods : -Lahraouiyine (5.580 households) -Lemkensa (7.996 households)

Value added of the GPOBA pilot Understand the issues and put the problems on the table (progressive land tenure and ownership regularization, recognition of the population in illegal settlements, financing needs, etc.) Clarify the role of all parties and allocate clear responsibilities on how to solve these problems Strengthen the partnership between the parties, for and beyond the pilots, based on shared development objectives Adapt LYDEC’s organization to meet INMAE objective (70 staff dedicated to the project)

Challenges ahead: INMAE in Casablanca Hhs Before 2010 : Relocation is integrated in publicly funded programs What about on site upgrading?

Challenges ahead: INMAE in Casablanca Needs to expand service to “On site upgrading” : Estimated cost : US$ 137m Available local financing mechanisms (LYDEC, investment funds, user connection fees, local institutions) : US$ 87m Financing gap : US$ 50m Next steps : How to finance pilot project scale up ? What role for the World Bank Group ?

Thank you