Reconstruction plan: Where will the MAD 120 billion go?
Fouzi Lekjaâ brought good news to the Finance Committees of both Houses of Parliament. The Minister in charge of the Budget assured that those on the list of beneficiaries of direct financial aid will start receiving 2,500 Dirhams (USD 250) per family from the end of September.
An agreement has been signed between Caisse de dépôt et de gestion (CDG) financial institution and the entities concerned to deliver this aid to the targeted households. Under the terms of the agreement, each family will be allocated 30,000 Dirhams (USD 3,000) annually, i.e. MAD 2,500 per month for one year. In addition, a sum of 140,000 MAD (USD 14,000) will be paid to each family whose house has been completely destroyed. Families whose homes were partially destroyed will receive 80,000 MAD. This sum will be used to cover the cost of bringing the homes up to standard. In any case, Lekjaâ appeared before both Finance Committees to detail these measures, accompanied by his colleague Mustapha Baitas, Minister for Relations with Parliament, and Government Spokesman. The aim is to explain to MPs the content of the general reconstruction and rehabilitation program for the areas affected by the Al Haouz earthquake. This is a clear roadmap requiring the mobilization of 120 billion MAD (USD 12 billion) over a 5-year period, from 2024 to 2028. This Marshall Plan will be financed from a number of sources, including the special solidarity account set aside to manage the effects of the earthquake. The other source of funding is the general Government budget. The Minister mentioned in particular several projects scheduled for the next three years, not forgetting the budgetary efforts that will be detailed in the Finance Bill currently being prepared. Added to this are the contributions of local authorities, particularly the regions, each of which has its own regional development plan. As a reminder, the provinces affected by the earthquake are located in three different regions: Marrakech-Safi, Souss Massa, and Draâ-Tafilalet. The other player in this program is the Hassan II Fund for Economic and Social Development. By royal decision, this Fund will contribute 2 billion MAD to this first stage. The final component of the financing scheme relates to international support and cooperation. Indeed, « this program will be open to support and international cooperation with brotherly and friendly countries, which have shown their absolute solidarity with the King and with the Moroccan people in these difficult conditions», said Lekjaâ.
■ 98 billion MAD for the Grand Atlas
The second pillar focuses on the completion of various projects over the 2024-2028 period. This part of the program will require the mobilization of 98 billion MAD (USD 9.8 billion). The key word in the list of projects is improving accessibility. This involves developing basic infrastructures such as roads, dams, and liquid sanitation. It will also be necessary to enhance the attractiveness and economic potential of these provinces by strengthening agricultural, tourism, and craft activities. The provision of schools and healthcare facilities has not been overlooked, either.
■ Basic infrastructure
The emergency program, which targets an estimated population of 4.2 million, is built around two pillars. The first pillar concerns the reconstruction and rehabilitation of basic infrastructure affected by the earthquake. The cost amounts to 22 billion MAD. Of this total, 8 billion MAD has been earmarked for emergency aid, which will go directly to families whose homes have been totally or partially destroyed. A further 14 billion MAD has been earmarked for opening up and guaranteeing access. More than 600 kilometers of roads will be widened and reinforced to ensure access to the affected areas. The funding will also be used to rehabilitate affected dams (including hill dams). In addition, more than 50 water stations will be repaired and upgraded, and mechanisms will be set up to respond immediately to exceptional emergencies.
■ An implementing agency in the pipe
On the institutional front, Fouzi Lekjaâ plans to set up a dedicated implementing agency. This light structure will be operational from the beginning of 2024 and will cease operations in 2028, when the reconstruction program comes to an end. Such an agency will have the necessary flexibility, following the example of the MCA, which handled the American Millennium Challenge program. Its main missions have already been defined. These include monitoring the disbursement of financial aid, and executing the reconstruction and rehabilitation projects included in the roadmap. The agenda also includes the implementation of socio-economic development projects and coordination with the various sectors and operators concerned.
Mohamed CHAOUI
