Project General Description
The present intervention concerns the Municipal Equipment Fund "Fonds d’Equipement Communal (FEC)". It’s a EUR 100 million line of credit to the FEC, a subnational development finance institution of the Kingdom of Morocco, to enable it to finance the infrastructure and investment projects of local governments that are eligible for financing from this public bank. This financing will be matched with co-financings and a technical assistance grant to help local governments to identify, plan and implement their projects and the FEC to evaluate the impact of the projects it finances. The line of credit will enable the FEC to finance the infrastructure and capital projects of local governments. This should result in improved functioning of and access to public services in Morocco (particularly for underserved and rural communities) as well as the development of economic and industrial activities at the local level. It will also facilitate job creation (including for women) and business development, while generating significant tax revenues for the State.
The aim of the project is to enable the FEC to finance equipment and investment projects of local authorities that are eligible for financing by this sub-national development financing institution. This financing will be accompanied by a technical assistance grant for the benefit of local and regional governments as well as the FEC.