Morocco - Inclusive Green Growth DPLs 1 and 2...

Document ofThe World Bank

Report No: ICR00004088

IMPLEMENTATION COMPLETION AND RESULTS REPORT

(IBRD-83250)

ON A

SERIES OF PROGRAMMATIC LOANS

IN THE AMOUNT OF EURO 219.7 MILLION AND US $300 MILLION(US$ 602.35 MILLION EQUIVALENT)

TO THE

KINGDOM OF MOROCCO

FOR A

INCLUSIVE GREEN GROWTH DEVELOPMENT POLICY LOANS (1 AND 2)

April 30, 2018

Environment and Natural Resources Global PracticeMaghreb DepartmentMiddle East and North Africa Region

CURRENCY EQUIVALENTS(Exchange Rate Effective 11/28/2017)

Currency Unit = Moroccan Dirham (MAD)MAD 1.00 = US$ 0.11US$ 1.00 = MAD 9.41MAD 1.00 = Euro 0.09Euro 1.00 = MAD 11.20

FISCAL YEARJanuary 1 - December 31

ABBREVIATIONS AND ACRONYMS

ABHOER Oum Er Rbia River Basin AgencyAM Aide MemoireAMEE Moroccan Agency for Energy EfficiencyANDA National Aquaculture Development AgencyANRE National Agency for Electricity RegulationASA Advisory Services and AnalyticsBOD Biological Oxygen DemandCAS Country Assistance StrategyCOED Cost of Environmental DegradationCPS Country Partnership StrategyDMN Directorate for National MeteorologyDPL Development Policy LoanDPM The Department of Marine FisheriesEE Energy EfficiencyEIA Environmental Impact AssessmentEMP Environmental Management PlanESIA Environment and Social Impact AssessmentFAO Food and Agriculture Organization of the United NationsFCS Social Cohesion FundsFDA Agricultural Development FundFY Fiscal YearGDP Gross Domestic ProductGEF Global Environment FacilityGHG Green House GasesGoM Government of MoroccoICR Implementation Completion and Results ReportICZM Integrated Coastal Zone ManagementIGG Inclusive Green GrowthISR Implementation Status and Results Report IUU Illicit, Unreported and Unregulated FishingLV Low VoltageM&E Monitoring and EvaluationMAD Moroccan DirhamMAGG Ministry of General Affairs and GovernanceMAPM Ministry of Agriculture and Fisheries MDTF Multi-Donor Trust FundMEF Ministry of Economy and Finance MEMDD Ministry of Energy, Mines and Sustainable Development

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MENA Middle East and North AfricaMoT Ministry of Tourism, Air Transport, Handicrafts, and Social Economy MTR Mid Term ReviewMV Medium VoltageMVDIH Voluntary Mechanism for Industrial DepollutionMW MegawattNDC Nationally Determined ContributionsNGO Non-Governmental OrganizationOECD The Organisation for Economic Co-operation and DevelopmentPAD Project Appraisal DocumentPDO Project Development ObjectivePforR Program for ResultsPNL National Coastal Zone Management PlanQEA Quality at EntryQSA Quality of SupervisionRE Renewable EnergyRFP Request for ProposalSEA Strategic Environmental AssessmentSMIT Moroccan Agency for Tourism Development SRL Regional Coastal Zone Management PlansTTL Task Team LeaderUNFCC United Nations Framework Convention on Climate Change

Senior Global Practice Director: Karin KemperPractice Manager: Lia Sieghart

Project Team Leader: Andrea Liverani and Maria SarrafICR Team Leader: Helena Naber

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KINGDOM OF MOROCCOInclusive Green Growth Development Policy Loans (1 AND 2)

CONTENTS

Data SheetA. Basic InformationB. Key DatesC. Ratings SummaryD. Sector and Theme CodesE. Bank StaffF. Results Framework AnalysisG. Ratings of Program Performance in ISRsH. Restructuring

1. Program Context, Development Objectives and Design..............................................................12. Key Factors Affecting Implementation and Outcomes................................................................8

3. Assessment of Outcomes............................................................................................................114. Assessment of Risk to Development Outcome...........................................................................28

5. Assessment of Bank and Borrower Performance.......................................................................286. Lessons Learned.........................................................................................................................30

7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners............................31

List of Annexes:Annex 1 Bank Lending and Implementation Support/Supervision Processes...............................33Annex 2. Beneficiary Survey Results.............................................................................................35Annex 3. Stakeholder Workshop Report and Results.....................................................................36Annex 4. Borrower's ICR...............................................................................................................37Annex 5. Comments of Cofinanciers and Other Partners/Stakeholders.........................................56Annex 6. List of Supporting Documents........................................................................................57Annex 7. Additional Tables and Figures........................................................................................59Annex 8. MAP................................................................................................................................56

List of Tables:Table 1. DPL1 and DPL2 Key Indicators.........................................................................................5Table 2. Summary Table of DPL1 and DPL2..................................................................................8Table 3. DPL1 and DPL2 Indicative Triggers..................................................................................8

List of Figures:Figure 1. Overview of IGG DPL Series Policy Areas......................................................................7

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D A T A S H E T

A. Basic Information

Program 1

Country Morocco Program NameMA-Inclusive Green Growth DPL

Program ID P127956 L/C/TF Number(s) IBRD-83250

ICR Date 02/23/2018 ICR Type Core ICR

Lending Instrument DPL Borrower Kingdom of Morocco

Original Total Commitment

Euro 219.7 M Disbursed Amount USD 302.35M equivalent

Implementing Agencies: Ministry of General Affairs and Governance; Ministry of Economy and Finance; Ministry of Energy, Mines, and Sustainable Development.

Co-financiers and Other External Partners: none

Program 2

Country Morocco Program NameMorocco Inclusive Green Growth DPL2

Program ID P149747 L/C/TF Number(s) IBRD-85730

ICR Date 01/31/2018 ICR Type Core ICR

Lending Instrument DPL Borrower Kingdom of Morocco

Original Total Commitment

USD 300.00M Disbursed Amount USD 300.00M

Implementing Agencies: Ministry of General Affairs and Governance; Ministry of Economy and Finance; Ministry of Energy, Mines, and Sustainable Development.

Co-financiers and Other External Partners: None

B. Key Dates MA-Inclusive Green Growth DPL - P127956

Process Date Process Original Date Revised / Actual Date(s)

Concept Review: 03/07/2013 Effectiveness: December 20, 2013

Appraisal: 11/11/2013 Restructuring(s):

Approval: 12/19/2013 Mid-term Review:

Closing: 12/31/2014 12/31/2014

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Morocco Inclusive Green Growth DPL2 - P149747

Process Date Process Original Date Revised / Actual Date(s)

Concept Review: 02/26/2015 Effectiveness: 12/31/2015

Appraisal: 10/08/2015 Restructuring(s): n/a

Approval: 12/18/2015 Mid-term Review: n/a

Closing: 12/31/2016 12/31/2016

C. Ratings Summary C.1 Performance Rating by ICR Overall Program Rating

Outcomes Moderately Satisfactory

Risk to Development Outcome Moderate

Bank Performance Moderately Satisfactory

Borrower Performance Moderately Satisfactory

C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Overall Program Rating

Bank Ratings Borrower Ratings Quality at Entry Moderately Satisfactory Government: Moderately Satisfactory

Quality of Supervision: Moderately Satisfactory Implementing Agency/Agencies:

Overall Bank Performance Moderately Satisfactory Overall Borrower

Performance Moderately Satisfactory

C.3 Quality at Entry and Implementation Performance Indicators MA-Inclusive Green Growth DPL - P127956

Implementation Performance Indicators QAG Assessments

(if any) Rating:

Potential Problem Program at any time (Yes/No):

No Quality at Entry (QEA) None

Problem Program at any time (Yes/No): No Quality of

Supervision (QSA) None

DO rating before Closing/Inactive status Satisfactory

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Morocco Inclusive Green Growth DPL2 - P149747Implementation

Performance Indicators QAG Assessments (if any) Rating:

Potential Problem Program at any time (Yes/No):

No Quality at Entry (QEA) None

Problem Program at any time (Yes/No): No Quality of

Supervision (QSA) None

DO rating before Closing/Inactive status None

D. SECTOR AND THEME CODES

MA-Inclusive Green Growth DPL P127956Original Actual

Major SectorAgriculture, Fishing and Forestry Other Agriculture, Fishing and Forestry 30 30 Irrigation and Drainage 10 10Energy and Extractives Other Energy and Extractives 50 50Industry, Trade and Services Other Industry, Trade and Services 10 10

Major Theme/Theme/Sub ThemeEnvironment and Natural Resource Management Climate change 33 33 Adaptation 11 11 Mitigation 33 33 Environmental Health and Pollution Management 4 4 Air quality management 4 4 Soil Pollution 4 4 Water Pollution 4 4 Environmental policies and institutions 11 11 Water Resource Management 34 34 Water Institutions, Policies and Reform 34 34Urban and Rural Development Rural Development 11 11 Rural Non-Farm Income Generation 11 11

Morocco Inclusive Green Growth DPL2 P149747Original Actual

Major SectorAgriculture, Fishing and Forestry Other Agriculture, Fishing and Forestry 28 28 Livestock 9 9

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Fisheries 9 9Energy and Extractives Other Energy and Extractives 27 27Social Protection Social Protection 9 9Industry, Trade and Services Other Industry, Trade and Services 18 18

Major Theme/Theme/Sub ThemeEconomic Policy Economic Growth and Planning 2 2 Migration, Remittances and Diaspora Engagement 2 2 Fiscal Policy 2 2 Subnational Fiscal Policies 2 2Environment and Natural Resource Management Climate change 33 33 Adaptation 11 11 Mitigation 33 33 Environmental Health and Pollution Management 4 4 Air quality management 4 4 Soil Pollution 4 4 Water Pollution 4 4 Environmental policies and institutions 11 11Human Development and Gender Labor Market Policy and Programs 2 2 Labor Market Institutions 2 2Private Sector Development Jobs 2 2 Youth Employment 2 2Social Development and Protection Social Protection 9 9 Social Safety Nets 9 9

E. Bank Staff MA-Inclusive Green Growth DPL - P127956

Positions At ICR At Approval Vice President: Hafez M. H. Ghanem Inger Andersen Country Director: Marie Francoise Marie-Nelly Simon Gray Practice Manager/Manager: Benoit Blarel Charles Cormier

Task Team Leader: Andrea Liverani Andrea Liverani ICR Team Leader: Helena Naber ICR Primary Author: Helena Naber

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Morocco Inclusive Green Growth DPL2 - P149747Positions At ICR At Approval

Vice President: Hafez Ghanem Hafez Ghanem Country Director: Marie Francoise Marie-Nelly Marie Francoise Marie-Nelly Practice Manager/Manager: Lia Sieghart Benoit Blarel

Task Team Leader: Maria Sarraf Andrea Liverani and Maria Sarraf ICR Team Leader: Helena Naber ICR Primary Author: Helena Naber

F. Results Framework Analysis

Program Development Objectives (from Program Document)

PDO1. Improving the management of natural capital;PDO2. Greening physical capital;PDO3. Strengthening and diversifying the rural economy by leveraging human capital.

Revised Program Development Objectives (as approved by original approving authority)Not applicable

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Indicator(s)*

MA-Inclusive Green Growth DPL 1 (P127956) and DPL 2 (P149747)

Indicator Baseline ValueOriginal Target

Values (from approval documents)

Formally Revised Target

Values

Actual Value Achieved at Completion or

Target YearsPillar 1. Improving the management of natural capital

1. Number of regional coastal zone management plans (Schémas Régionaux d’Aménagement du Littoral) approvedValue (Quantitative or Qualitative) 0 2 0

Date achieved 12/2013 09/2017 09/2017Comments (including % achievement)

In progress (tendering stage) – expected to be achieved.

The approval of the integrated coastal zone management law, as a prior action of this DPL, is an important breakthrough in protection and sustainable use of marine and coastal natural resources. This was Morocco’s first comprehensive legislative tool for the protection and sustainable management of its 3,500-kilometer-long coastal zone. National and regional coastal zone management plans, required by the approved law, are important tools for the integrated coastal zone management.

The preparation of the National Coastal Zone Management Plan (PNL) has proceeded as scheduled and a draft was presented at a stakeholder meeting in January 2018. The regional coastal zone management plans are anchored to the PNL.

The preparation of two Regional Coastal Zone Management Plans (SRL) for Rabat Salé Kenitra region – the Capital city region, and for Tangier-Tetouan-Al Hoceima region that is home to one of the largest ports in the Mediterranean was tendered in 2016. The tender was not successful, and was relaunched in early 2018.

The Government of Morocco (GoM) expects to prepare the draft SRLs and submit them for approval process. Approval process for SRL includes submission of draft SRL for opinion of regional committee chaired by the Wali, and then for opinion of National Committee for Integrated Coastal Zone Management, chaired by MEMDD. The process from submission of draft SRL for regional committee opinion to issuance of opinion by the national committee is 145 days.

Reference: Information collected during World Bank mission of September 2017 and recorded in mission aide mémoire.

2. Number of regional maritime fisheries control plans approved Value (Quantitative or Qualitative) 0 18 18


100% Achieved.

18 regional maritime fisheries enforcement plans were prepared and approved in September 2017 by all of Morocco’s 18 regional delegates. Implementation of the plans commenced on October 1, 2017. The stepped-up enforcement is expected to curtail the negative impact of illegal fishing on fish stocks, and to even out the playing field by interdicting those who had gained unfair advantage through illegal fishing.

Reference: Department of Fisheries summary shared in September 2017. 3. Number of aquifers (nappes) in which groundwater abstraction is regulated by a groundwater agreement among

water consumersValue (Quantitative or Qualitative) 1 3 4


Substantially Achieved (133% expected to be achieved) – expected to be fully achieved.

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Groundwater framework contract among water consumers covering the Tadla system multi-layered aquifers was validated in a Steering Committee Meeting of September 27, 2017 and recorded in meeting minutes. This framework contract covers 3 of the 8 aquifers, in the Tadla system, including the two most vulnerable to the risk of overexploitation - the shallow aquifer of Beni-Emir, Beni Moussa, and Dir, the Eocene deep aquifer, and the Turonien deep aquifer. Hence the target value of an additional two aquifers is surpassed. The groundwater agreement is essential to the management of this natural capital to prevent overexploitation of aquifers, mostly for irrigation, as Morocco’s groundwater resources are a strategic buffer source in droughts to ensure agricultural revenues.

The framework contract will be signed to enter into force and followed by local contracts among stakeholders. The bottom up and inclusive approach followed in this case is exemplary. Also, while similar framework contracts, that include participatory approach, usually take a decade to validate to ensure user awareness and participation, in case of Morocco, the steering committee validation of the framework contract in four years is evidence of strong stakeholder commitment.

At the national level, the approval of Council of Government of the new water law No. 36-15 with the inclusion of, participatory groundwater management, shows the Government commitment and helps in raising user awareness of the need to improve groundwater management. At the Oum Er Rbia Basin, the River Basin Agency has built on its effective communication of the water situation with various stakeholders, from the users to the leaders in the region.

Reference: Steering committee minutes of meetings of September 27, 2017.Pillar 2. Greening physical capital

4. Area (in m2) of new buildings integrating energy efficiency requirements and respecting thermal regulations for new buildings

Value (Quantitative or Qualitative) 0 50% 400,000 m2 3,403,165 m2

Date achieved 12/2013 12/2016 09/2017 09/2017Comments (including % achievement)

Target Exceeded (850% Achieved).

Buildings that are constructed today will impact the energy requirements for their useful life period. Integrating energy efficiency in buildings will reduce the need for heating and cooling and therefore, reduce the consumption of energy over the useful life of the building – thus contributing to greening physical capital.

During DPL2 preparation, this indicator was revised down from “50 percent of new buildings integrating EE requirements” to “400,000 m2 of new building integrating energy efficiency requirements” recognizing that the integration of energy efficiency requirements depends on a substantial behavior change process. The revised indicator was based on the estimated pipeline of new buildings until 2017 (DPL2 PAD p21). Modeling estimates that over 3 million m2 /year in 2015 and 2016 of new buildings integrate energy efficiency requirements and respect thermal regulations for new buildings. This is based on assumed uptake rate of 8% for residential buildings and 35% for commercial buildings.

Reference: Estimate extracted from model prepared within the framework of “Support the Government of Morocco in the implementation of its NDC in selected sectors (P159288)”.

5. Total capacity of distributed medium and low tension grid connected renewable energy systems (in MW) Value (Quantitative or Qualitative) 0 2 10 0


In progress, pending implementing legislation.

Target was revised up from 2 MW to 10 MW during preparation of DPL2, due to widening of scope to all types of renewable energies. Implementing legislation to open

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the electricity production to renewable energy at low and medium voltage however is not approved by the Government of Morocco to date. The envelopes that set maximum allowable renewable energy inputs into the grid for each major region / city are pending approval. The Electricity Regulator legislation is approved and appointment of president and board is underway – which will further facilitate private sector renewable energy generation.

The Government’s continued strong commitment to renewable energy reforms – as expressed in Morocco’s Energy Strategy, National Strategy for Sustainable Development, and Nationally Determined Contributions (NDC) commitments – is expected to ensure achievement of the intended outcomes in the near future. The World Bank (WB) and development partners remain engaged in the energy sector and support Morocco’s National Strategy for Sustainable Development and its core objectives, among which energy efficiency and renewable energy are central.

Reference: Aide Memoire February 2017. 6. Total subsidy envelope to diesel, gasoline and industrial fuel (in % of GDP)Value (Quantitative or Qualitative) 3% <2.5% 0% 0%


100% Achieved.

Fossil fuel subsidies support activities that promote the combustion of fossil fuels by creating competitive advantages for fossil fuels, act as competitive disadvantages for non-fossil fuel energy sources, and hinder sector transformation. Fossil fuel subsidies represent lost opportunities for governments to invest in renewable energy, energy efficiency and sustainable development. Removal of fossil fuel subsidies eliminates distortions that hinder development of renewable energy and energy efficiency, and leads to reductions in greenhouse gas emissions, therefore contributing to green growth.

Target was revised up from <2.5% to 0% during DPL2 preparation. Subsidies to diesel, gasoline and industrial fuel were removed completely by December 2015, and the removal has been maintained in the following fiscal budgets (2016, 2017, and 2018). The removal of subsidies brings about an average GHG emission reductions of 6.6% annually and is an important enabling factor for the planned expansion of renewable energy, thereby contributing to greening capital.

Reference: Budget laws 2015, 2016, 2017 and 2018.7. Social Cohesion Funds allocation as share of the total budget (excluding debt service)Value (Quantitative or Qualitative) 0.63% 1.34% 1.63%



This indicator was introduced at DPL2 to capture the increased share of the Social Cohesion Funds (FCS) expenditure within the Government budget due to savings from removal of subsidies.

FCS funds benefit the following programs: Tayssir – an education conditional cash transfer program; Ramed – non-contributory health coverage scheme; Poor and Disabled Population Cash Transfer Program; and Cash Transfer Program for Poor Widows. The budget allocated to FCS doubled from MAD 2 million to MAD 4 in 2014 - 2016 budgets, exceeding target indicator.

Reference: National budget law for 2015 and 2016.8. Number of industries having submitted a funding request to the Voluntary Mechanism for Industrial DepollutionValue (Quantitative or Qualitative) 0 3 24

Date achieved 12/2013 09/2017 09/2017

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Comments (including % achievement)


24 small and medium industries submitted requests for financing for the Voluntary Mechanism for Industrial Depollution (MVDIH), of which 20 small and medium industries have signed agreements with the MVDIH, thereby contributing to greening physical capital. Most of the beneficiaries are small and medium enterprises such as oil presses and other food industries located outside of major urban areas. The beneficiaries use funding to install wastewater treatment to ensure that effluents are in compliance with orders no. 2942.13, 2943.13, 2944.13 that came into force in January 2018. The orders apply pollution charges to effluents that exceed BOD5 standards – thus the MVDIH financing allowed them to be in compliance.

Reference: Ministry of Energy, Mines and Sustainable Development (MEMDD).9. Reduced industrial pollution (as measured by tons of BOD5 abated yearly)Value (Quantitative or Qualitative) 20 200 469



As a result of the MVDIH support, 20 small and medium industries have signed contracts for installation of wastewater treatment (see indicator 8 above). For the installed capacity, the actual BOD5 reduction is 469 tons / year. Additional reductions are expected when more wastewater treatment units under the signed agreements become operational.

Reference: GOM Borrower ICR.10. Number of polluting products subject to green taxes or to conventions promoting recycling value chainsValue (Quantitative or Qualitative) 2 4 8



Economic instruments such as taxes and pollution charges are important policy tools that create financial incentives for pollution control – and therefore contribute to greening physical capital. This number of pollution products that are subject to environmental taxes or to partnership agreements for the organization of the recycling processes is 8: plastic; sand; used batteries; used lubricating oils; used tires; paperboard; used food oils; and plastic bags. Feasibility studies are underway to examine extending the mechanism to electronic waste, construction and demolition waste, and vehicles at the end of the lifespan.

Reference: MEMDD data collected and recorded in World Bank mission aide mémoire.

Pillar 3. Strengthening and diversifying the rural economy by leveraging human capital11. Share of the envelope allocated to direct seeders in the total Agricultural Development Fund’s (FDA) envelope

allocated to seeders (traditional and direct) Value (Quantitative or Qualitative) 0 16.9% 6% 2%


Partially achieved (33%).

Conservation agriculture - characterized by minimal disturbance to soil, permanent soil cover, and intercropping - helps to reduce soil erosion, increase soil organic matter and increase resilience to climate change. This indicator measures the diffusion of new, resilience building conservation agriculture technologies (in this case, direct seeders) in agriculture that will contribute to strengthening the rural economy in terms of increase or maintenance of yields, reducing energy use and costs and provides more money to the farmers.

The indicator was revised down to 6% during DPL2 preparation due to lower uptake

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of direct seeders. The lower uptake was due to two reasons: concurrent GEF grant that also provided direct seeders, and lower rate of change of technology than expected.The share of envelope allocated to direct seeders in the total FDA envelope is 2% during the period 2015 – 2017. The policy measure is still valid and being applied.

Morocco undertook important measures in line with its Plan Maroc Vert to build resilience to climate change, such as: installation of the MOSAICC v.1.0 system, a tool designed to measure the impact of climate change on agriculture; increased use of drip irrigation to cover almost a third of its irrigated lands; and is adopting solar energy to power water pumps for irrigation.

The World Bank is further supporting Morocco’s Plan Maroc Vert, including its sustainability objectives, through Strengthening Agri-Food Value Chains Program-For-Results (P158346) that aims to accelerate the transformation of the agri-business sector towards greater value addition and market inclusion of small and medium producers and enterprises, and which will be key to ensuring that climate-smart agricultural activities at the production level will be sustained over time.

Reference: Information provided by the Ministry of Agriculture and Fisheries. 12. Share of DMN revenues from agro-meteorological services Value (Quantitative or Qualitative) 4% 15% 9% 5.5%


Partially achieved (61%).

This indicator captures the strengthened collaboration between the Directorate for National Meteorology (DMN) and the MAPM at the institutional level for the provision of agro-meteo data. Enhanced agro-meteo information is a necessary condition for strengthening the resilience of vulnerable rural populations who are dependent on agriculture, and whose livelihoods are impacted by weather elements. This helps farmers to be better prepared for droughts and protect their income, thereby strengthening the rural economy.

The indicator was revised down from 15% to 9% during the preparation of DPL2, because the DMN signed also an agreement with the Ministry of Water for flood protection (thus increasing the total revenue and expectedly that share of MAPM has decreased accordingly). The share of DMN revenues from agro-meteorological services is 5.5%.

While the target is partially achieved, Morocco is continuing with the efforts to diffuse agro-meteorological information to farmers. These efforts are supported by the World Bank Strengthening Agri-Food Value Chains Program-For-Results (P158346) that includes under its results area 1, activities promoting the diffusion of agrometeorological information to farmers, which increases their resilience to climate change, and therefore, contributes towards strengthening and diversifying rural economy.

Reference: DMN provided data recorded in February 2017 aide memoire.13. Number of aquaculture sector jobs created (gender disaggregated) Value (Quantitative or Qualitative) 115 460 500 (100w) 367 (26)


Substantially achieved (73%) – target expected to be exceeded.

Development of aquaculture sector helps to diversify incomes and provide sustainable livelihoods to rural populations. This indicator was revised upward to 500 (DPL2 PAD p25) following progress. The number of paid formal jobs created to date is 367 of which 21 are women. The number of jobs is expected to increase with an additional 2,000 jobs in Dakhla – as indicated by a highly successful response to a call for expression of interest by the National Aquaculture Development Agency (ANDA). A women’s cooperative in Dakhla is also expected to raise number of jobs held by

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women (no specific number available at this stage).

Reference: communication with National Aquaculture Development Agency (ANDA) September 2017.

14. Number of eco-tourism sector jobs created (gender disaggregated) Value (Quantitative or

Qualitative) 0 1,100 250 (80w) 0

Date achieved 12/2013 12/2016 09/2017 09/2017Comments (including %

achievement)Not achieved - Progress in enabling environment.

Indicator was revised downwards from 1,100 to 250 because the Qariati program was just starting, and the bulk of job creation was expected to take place once the enabling environment for the private sector participation is in place – which was expected to happen in the medium to long-term (3-5 years) and beyond the timeframe of the DPL series. The Government of Morocco put the enablers in place to prepare for Qariati program implementation. However, due to lack of financing, investments have not taken place. As such, no jobs were created in the rural sector to date.

Reference: Communication with Moroccan Agency for Tourism Development (SMIT), September 2017.

Notes: 1/ The IGG DPL series policies and reforms that are relevant to these indicators remain in effect and are being advanced.

2/ The deadline for achieving targets was set in the results framework matrix for September 2017 (9 months post closure of DPL) to explicitly leave the time to results of the reforms to pan out.

G. Ratings of Program Performance in ISRs1

MA-Inclusive Green Growth DPL - P127956

No. Date ISR Archived DO IP Actual Disbursements

(USD millions) 1 04/21/2014 Satisfactory Satisfactory 301.60 2 08/25/2014 Satisfactory Satisfactory 301.60

H. Restructuring (if any)

Not applicable.

1 Per Development Policy Financing Processing Instructions (June 2016), ISRs for programmatic operations will only be necessary if the time between the last operation's Board date and next operation's Board date exceeds 12 months.

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1. Program Context, Development Objectives and Design

1.1 Context at Appraisal

1. Country Context: Morocco is a middle-income country with a population of approximately 33 million2 in 2013. The country is characterized with diverse ecosystems including 3,500 km of coastline on the Mediterranean Sea and Atlantic Ocean, mountains, forests, oasis and desert ecosystems. Morocco’s economy is dependent on its natural resources, with sectors such as agriculture and fisheries accounting for 20% of Morocco’s Gross Domestic Product (GDP). Morocco’s natural resources faced gradual but steady depletion, and this degradation had the potential to impact key sectors that depend on sustainable ecosystem services.

2. Macro-economic context : Morocco suffered from the 2008 global financial crisis, and the subsequent food and fuel crises. Internal and external shocks combined with significant economic rigidities had exposed the fragility of the Moroccan economy. At the same time, recent favorable weather conditions had driven the outstanding agricultural output for a solid economic performance in 2013. Over the first half of 2013, GDP growth reached 4.4% thanks to a 20.3% jump in agricultural production, which offset the slower growth of the other economic sectors. The Government and the Central Bank continued to demonstrate their commitment to control inflation, which has been kept relatively low since the eruption of the global crisis (1.6% in average over 2008-2012), mainly thanks to price subsidies benefiting basic food and fuel products and to prudent monetary policies. Morocco made noteworthy progress in reducing its poverty level from 15% in 2001 to almost 5% in 2012, and eradicated extreme poverty. The unemployment rate had been high hovering around 9% in recent years – or about one million unemployed people – despite years of respectable economic growth and declining participation rates.

3. In 2013, falling world prices of basic commodities and a slowing-down of domestic demand allowed the main external indicators to improve. Low external demand led to a drop of nominal exports by 1.5% over January-September 2013. At the same time, relying totally on imported energy, Morocco benefited from the easing of world prices of imported fuels over the period (down 8% for crude oil). Despite easing monetary policies, the economy continued to suffer from an under-liquid money market. The gradual pace of public finance reforms coupled with the economic turmoil in Europe and continued soaring prices of commodities have eventually had their toll on Morocco’s fiscal accounts. Public finance increasingly deteriorated since the outburst of the global crisis in 2008, with the 2011 budget registering the second highest deficit in two decades reaching 6.9% of GDP. The budget deficit worsened further to 7.6% of GDP in 2012 mostly determined by record subsidy outlays peaking at 6.6% of GDP, resulting in a first-time situation, where the budget spent more on subsidies than on investment. This was eased to an extent in 2013 with the falling subsidies due to decline in world fuel prices. Moreover, in a context of tight liquidity in domestic markets, financing persistently high budget deficits started to prove difficult: this forced the government to levy more funds from volatile international financial markets. The central government debt increased by 5 percentage points of GDP by September 2013 compared to September 2012, to reach 60.5% of GDP. Without meaningful corrective measures, Morocco's fiscal stance risked derailing the sustainability of Morocco's overall macroeconomic framework in the medium term.

4. Sector Context : Major challenges threatened the sustainability of Morocco’s achievements in reducing poverty and economic growth. These challenges included: i) continued reliance of Morocco’s economy on a rapidly eroding natural capital base (degradation and over abstraction of groundwater resources, coastal degradation, and decline in fisheries resources); ii) reliance on ‘grow now, clean up later’ model that encouraged harmful lock-ins, including high costs of

2 World Bank. 2018. World Development Indicators. Available online: http://databank.worldbank.org

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environmental degradation and rapidly growing energy consumption; and iii) high vulnerability since almost 17% of Morocco’s population lived just above the poverty line in 2012. These challenges threatened to lock Morocco’s economy into unsustainable patterns.

5. There was widespread realization among Morocco’s general public and policy makers of the need to shift Morocco’s development trajectory to a more sustainable path. King Mohammed VI in His Throne Speeches of 2009 and 2010, called for comprehensive legislation on environmental management, and explicitly set “Green Growth” as a priority for government action. The country’s revised constitution of 2011 reflected the need for sustainability by compelling the state and its agencies to work towards ensuring equal access to a healthy environment and sustainable development. In 2012, Morocco signed the Organisation for Economic Co-operation and Development (OECD) Declaration on Green Growth for a socially inclusive and environmentally sound growth, highlighting Morocco’s positioning as the Middle East and North Africa (MENA) country with the firmest commitment to the sustainable development agenda. The Government of Morocco (GoM) had also worked to strengthen its environmental sustainability framework by preparing a draft framework law on environment and sustainable development; drafting its first national sustainable development strategy (that has since been adopted in June 2017).

6. Morocco’s Green Growth agenda was articulated around three key objectives that were also reflected in the Government program and in the sector strategies for agriculture, water, energy, tourism, and fisheries. These objectives are:

a. Ensuring the sustainability of the economy’s natural resource base:

o Coastal ecosystem resources: Morocco’s coastal zones are home to 56% of Morocco’s population, and provide important contributions to its economic growth and prosperity. Sectors like tourism, agriculture, fisheries, and aquaculture depend crucially on coastal ecosystems. However, demographic and economic pressures led to progressive degradation of coastal natural resources and ecosystems. Construction, sand-mining, insufficient sewerage and solid waste collection and disposal have consequences in terms of loss of biodiversity, and degradation of ecologically-sensitive areas. Overexploitation of coastal aquifers, mostly for irrigation, also led to their salinization through seawater intrusions. Climate change and demography are expected to add to such pressures, which call for immediate and concrete adaptation measures. In order to address these issues in an integrated, inter-sectoral and multi-stakeholder manner, an organizing framework for integrated coastal zone management was essential.

o Fisheries resources: The fisheries sector accounts for 2.3% of Morocco’s GDP and support over half a million people. However, the growth of fisheries sector was threatened, among others, by illegal fishing practices. Morocco prepared a comprehensive strategy for fisheries management - Halieutis that aimed at investing in and developing the sustainability of the sector. The three main axes of the Halieutis are sustainability, performance (increased catch quality), and competitiveness. Halieutis combines a broad objective of increasing production in value terms (to more than MAD20 billion by 2020) with an overarching goal of ensuring that 95% of the species are managed sustainably. The prohibition of illicit, unreported and unregulated (IUU) fishing was a key aspect of Morocco’s fisheries management, and fully in line with Food and Agriculture Organization (FAO) International Plan of Action to Prevent, Deter, and Eliminate Illegal, Unreported and Unregulated Fishing. The Department of Marine Fisheries (DPM) has already taken key enforcement measures by setting up and investing in a Vessel Monitoring System (VMS) via satellite, which equipped all vessels above a certain size with tracking beacons and follows them in real time, as well as tracking measures in order to define the legal origin of catches.

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o Groundwater resources: The potential of renewable water resources in Morocco was estimated at 22 billion m3 per year, the equivalent of 730 m3/capita/year, below the water stress threshold of 1,000 m3/capita/year. The country’s deficit was estimated at 2 billion m3, and the current trends of water demand were expected to lead to an increase of this deficit. Water abstraction for irrigation and, to a lesser extent industry, are the main drivers for aquifer overexploitation. Indeed, the renewable groundwater is 4 billion m3, with an estimated use of 5 billion m3; resulting every year to mining the non-renewable water for an amount of about 1 billion m3 per year. This overuse of groundwater is a concern because Morocco’s groundwater resources are a strategic buffer source in droughts and to ensure agricultural revenues, including for small scale farmers. However, over the past decades, stocks have been impacted by the overuse of groundwater. GoM’s strategy aims to reduce current and future water deficits as reflected in Morocco’s National Water Sector Strategy.

b. Encouraging a shift towards low carbon growth and low impact investments: o Low carbon growth: Morocco opted for a low carbon development strategy centered on

green infrastructure investments. To address the challenges of energy security, sustainable development and competitiveness, the GoM formulated its energy strategy in 2009, with an update in 2011. The objectives were: availability of energy to all Moroccan households and businesses at competitive prices, energy demand management, promotion of national expertise and technological know-how, environmental protection, and climate change mitigation. To reach those objectives, the strategy aimed to: (i) diversify and optimize the energy mix around reliable and competitive energy technologies, in order to reduce the share of oil to 40% by 2030; (ii) develop the national renewable energy potential; (iii) make energy efficiency improvements a national priority (induce energy savings of 12% by 2020 and 15% by 2030); (iv) develop national energy resources by intensifying hydrocarbon exploration activities and developing conventional and unconventional oil sources; and (v) integrate into the regional energy market, through enhanced cooperation and trade with other Maghreb countries and the EU. The strategy is particularly ambitious as regards renewable energy (RE), calling for a RE share of 42% of power generation capacity by 2020. Over US$2 billion have been allocated so far to meet those objectives.

o Pollution management: Industrial pollution heavily contributed to degrading the quality and productivity of natural assets, particularly water. In 2003, the Bank estimated that the total annual cost from the degradation of water quality at 1.2% of GDP in 2000. Data from 2007-2008 based on 39% of the measurement points of surface water across the country show water quality to be poor or very poor mainly due to organic and bacteriological pollution. For groundwater, the rate was 44% across the country (at the level of measure stations), mostly due to salinization and nitrate pollution. To address pollution, the Government has adopted an inter-ministerial Order (arrêté) setting norms and standards for industrial wastewater treatment and a Voluntary Industrial Depollution Mechanism (MVDIH) to support industries in reaching the standards.

c. Spurring innovation and job creation through investments in green sectors: The Government saw part of future job creation in the emergence and expansion of sectors addressing clear sustainability challenges, such as agriculture, aquaculture, and eco-tourism, which are also relatively labor-intensive.

o Agriculture: The Plan Maroc Vert - Morocco’s agricultural strategy for the period 2008-2020 aimed to double the agriculture sector’s value-added and improve farmers’ incomes by shifting the sector towards a dynamic and open market which keeps food security concerns and natural resources conservation at its core. It is based on two Pillars: Pillar “I” supports commercial farmers’ integration into domestic and international markets, and Pillar II focuses on small farmers in rain fed and marginal areas. Increased attention is

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being given to environmental and social aspects, through (i) assessments of environmental impacts in agro-food chains and implementation of related adaptation measures; (ii) investments tailored to local agro-climatic conditions including the promotion of efficient seed irrigation; (iii) the provision of improved seed practices to enhance productivity and climate change adaptation; and (iv) better provision of agro-meteorological services.

o Aquaculture: the Halietus strategy framed the development of Morocco’s aquaculture sector within the dual objective of relieving pressure on marine resources whilst increasing production of fish products, enhancing the value of exports, and fostering job creation. In recognition of this new priority, the National Agency for the Development of Aquaculture (ANDA) was established in February 2011, with four distinct objectives: (i) developing a new national strategy for aquaculture; (ii) implementing that strategy; (iii) developing specific action plans for each aquaculture sector, and (iv) promoting aquaculture and access of farmed products to markets, both domestically and internationally.

o Ecotourism: Tourism is fundamental to Morocco’s economy; however, it is concentrated in seaside tourism. The GoM aimed to diversify the tourism product to take advantage of the full range of Morocco’s natural assets and contribute to rural economy. As part of its ambitious strategy aimed at developing the tourism sector (“Vision 2020”), the Ministry of Tourism (MoT)’s “Qariati” Program aimed to develop eco-tourism in rural areas. “Qariati” aimed to expand accommodation facilities (35,000 additional beds, from a current base of 20,000) and support infrastructure (signage, welcome/interpretation centers, tourist attractions, and thematic circuits, i.e. culinary and agribusiness trails) while fostering tourism income-generating activities.

7. Rationale for Bank assistance: The Inclusive Green Growth DPL series supported the GoM in its broad measures to shift Morocco’s economic growth onto a sustainable path. The operation addressed the three objectives of Morocco’s inclusive green growth. The measures supported by the DPL series were anchored in the existing sector strategies and ongoing reform agenda and fully linked to the Government’s program. The Government’s request for an inter-sectoral design of the operation aimed at leveraging Bank’s assistance towards enhanced coordination and alignment of sector strategies around common sustainability objectives – the key goal of Morocco’s National Sustainable Development Strategy. The operation responded to the World Bank Group’s strategic goals of ending extreme poverty and boosting shared prosperity. The objectives of the DPL series were fully aligned with the Country Partnership Strategy (CPS) of 2010-2013 and CPS 2014-2017, as well as with the World Bank’s regional strategy.

1.2 Original Program Development Objectives (PDO) and Key Indicators (as approved)

8. The Program Development Objectives (PDOs) were as follows:PDO 1. Improving the management of natural capital;PDO 2. Greening physical capital;PDO 3. Strengthening and diversifying the rural economy by leveraging human capital.

9. The key results indicators were as follows:

DPL1:1. Number of regional coastal zone management plans (Schémas Régionaux d’Aménagement du

Littoral) approved;2. Number of regional maritime fisheries control and enforcement plans approved;3. Number of aquifers (nappes) in which groundwater abstraction is regulated by an aquifer

agreement among ‘large’ water consumers;4. Percentage of new buildings (hospitals, residential, tertiary) built after the publication of the

Decree and integrating EE requirements;

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5. Total capacity of distributed medium- and low-tension grid-connected photovoltaic systems (in MW)

6. Total subsidy envelope to diesel, gasoline and industrial fuel (in % of GDP);7. Number of industries having submitted a funding request to the Voluntary Industrial Pollution

Mechanism;8. Reduced industrial pollution (as measured by tons of BOD5 abated yearly);9. Number of products subject to green taxes;10. Share of the envelope allocated to direct seeders in the total FDA envelope allocated to

seeders (traditional and direct);11. Share of DMN revenues from agro-meteorological services;12. Number of aquaculture sector jobs created (gender disaggregated);13. Number of ecotourism sector jobs created (gender disaggregated).

1.3 Revised PDO (if any, as approved by original approving authority) and Key Indicators, and Reasons/Justification

10. The PDO was not revised. Revisions to key indicators were made, the table below highlights in grey the change in indicators introduced in DPL2. During DPL2, the deadline for the achievement of indicator targets was set for September 29, 2017 to explicitly leave the time needed for the results of the reforms to pan out – therefore, the target date for achievement of target indicators is September 2017 (and not December 2016 – the closure date of the DPL2).

Table 1. DPL1 and DPL2 Key Indicators Key Indicators Baseline Target Reason for ChangePDO 1. Improving the management of natural capital

1 DPL1 # of regional coastal zone management plans (Schémas Régionaux d’Aménagement du Littoral) approved

0 2 No change

DPL2 Number of regional coastal zone management plans (Schémas Régionaux d’Aménagement du Littoral) approved

0 2

2 DPL1 # of regional maritime fisheries control and enforcement plans approved

0 18 Clarification in wording

DPL2 Number of regional maritime fisheries control plans approved 0 183 DPL1 # of aquifers (nappes) in which groundwater abstraction is

regulated by an aquifer agreement among ‘large’ water consumers

1 3 Clarification in wording

DPL2 Number of aquifers (nappes) in which groundwater abstraction is regulated by a groundwater agreement among water consumers

1 3

PDO 2. Greening physical capital4 DPL1 % of new buildings (hospitals, residential, tertiary) built after the

publication of the Decree and integrating EE requirements;0% 50% Target was reduced during

the preparation of DPL2 from 50% of all new buildings to 400,000m2 recognizing that the integration of energy efficiency requirements depends on a substantial behavior change process. The revised indicator was based on the estimated pipeline of new buildings until 2017.

DPL2 Area (in m2) of new buildings integrating energy efficiency requirements and respecting thermal regulations for new buildings

0 400,000

5 DPL1 Total capacity of distributed medium- and low-tension grid-connected photovoltaic systems (in MW)

0 2 The target was increased from 2 MW to 10 MW due to widening of scope of the applicable legislation from photovoltaic energy to all types of renewable energies.

DPL2 Total capacity of distributed medium and low tension grid connected renewable energy systems (in MW)

0 10

6 DPL1 Total subsidy envelope to diesel, gasoline and industrial fuel (in% of GDP)

3% <2.5% The target was increased from reduction in subsidy to 2.5% of GDP to 0% of GDP. DPL2 Total subsidy envelope to diesel, gasoline and industrial fuel (in

% of GDP)3% 0%

7 DPL1 - New indicator was introduced during the preparation of DPL2 to

DPL2 Social Cohesion Funds allocation as share of the total budget (excluding debt service)

0.63 1.34

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Key Indicators Baseline Target Reason for Changecapture the increased share of the Social Cohesion Funds expenditure within the Government budget due to savings from removal of subsidies.

8 DPL1 Number of industries having submitted a funding request to the Voluntary Industrial Depollution Mechanism

0 3 No change.

DPL2 Number of industries having submitted a funding request to the Voluntary Mechanism for Industrial Depollution

0 3

9 DPL1 Reduction in industrial pollution (as measured by tons of BOD5 abated yearly)

20 200 Editorial change.

DPL2 Reduced industrial pollution (as measured by tons of BOD5 abated yearly)

20 200

10 DPL1 # of products subject to green taxes 2 4 Indicator revised to clarify that target relates to “polluting products” and to include conventions promoting recycling value chains.

DPL2 Number of polluting products subject to green taxes or to conventions promoting recycling value chains

2 4

PDO 3. Strengthening and diversifying the rural economy by leveraging human capital

11 DPL1 Share of the envelope allocated to direct seeders in the total FDA envelope allocated to seeders (traditional and direct)

0% 16.9% Target was reduced at DPL2 preparation to account for slower uptake of direct seeders than was initially expected. The slower uptake was attributed to the concurrent GEF grant that provided direct seeders and to lower rate of technology proliferation than was initially expected.

DPL2 Share of the envelope allocated to direct seeders in the total Agricultural Development Fund’s (FDA) envelope allocated to seeders (traditional and direct)

0% 6%

12 DPL1 Share of DMN revenues from agro-meteorological services 4% 15% Target was reduced during preparation of DPL2 to 9% and baseline was revised.

DPL2 Share of DMN revenues from agro-meteorological services 1.5% 9%

13 DPL1 # of aquaculture sector jobs created (2013-2016), gender disaggregated

115 460 Target was increased to 500 following progress achieved and target for women jobs was introduced.

DPL2 Number of aquaculture sector jobs created (gender disaggregated) 115 500 (100w)

14 DPL1 # of ecotourism sector jobs created (2013-2016), gender disaggregated

0 1100 Target was reduced from 1100 to 250 and target for women jobs introduced (of which 80 are women jobs)

DPL2 Number of eco-tourism sector jobs created (gender disaggregated) 0 250 (80w)

Note: Text highlighted in grey indicates revisions to indicators between DPL1 and DPL2.

1.4 Original Policy Areas Supported by the Program (as approved):

11. The program supported six policy areas:

a. PDO 1 – “improving the management of natural capital” supported the GoM’s efforts to improve the management of natural resources underpinning key economic sectors.Policy area 1.1 Management of coastal and marine assets; andPolicy area 1.2 Water sector governance.

b. PDO 2 – “greening physical capital” supported the Government’s objectives of reducing adverse environmental impacts of infrastructure investments and promoting low carbon growth.Policy area 2.1 Low carbon growth; andPolicy area 2.2 Pollution management.

c. PDO 3 – “strengthening and diversifying the rural economy by leveraging human capital” supported the Government objective to: (i) strengthen the adoption of new technologies to increase agriculture’s productivity and resilience and (ii) support the establishment and growth of new sectors in rural areas.Policy area 3.1. Green technologies in the agricultural sector; andPolicy area 3.2 Diversification of rural revenues

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12. The Inclusive Green Growth (IGG) DPLs responded to the GoM’s request for support in three principal areas: (a) improving the management of natural capital, (b) greening physical capital; and (c) strengthening and diversifying the rural economy by leveraging human capital. The programmatic approach provided the GoM with sustained support to implement a series of reforms in a phased approach, building on the initial achievements to further the reform agenda, under a clearly defined policy framework. DPL1 focused on enacting laws and issuing various decrees to define roles, set environmental standards, and approve regulations to improve environmental sustainability in the energy, water, fisheries and sanitation sectors and support to green technology in the agricultural sector. DPL2 built on the previous operation and supported the development and implementation of various programs, strategies, and initiatives to strengthen environmental governance and address environmental concerns in the key sectors.

13. The selection of policy areas supported by the program was based on the GoM’s commitment, broad stakeholder consultations, and rigorous analytical work. Efforts to mainstream principles of sustainable development in key economic sectors. The selection of these sectors was based on World Bank analytical work and a comprehensive series of consultations with stakeholders led by the Ministry of Finance, with the outputs and active participation of various government agencies and consultations with other donors. Other factors that influenced the selection of sectors were the existence of supplementary support from other loans/grants and the level of sectoral support and commitment.

14. Figure 1 (below) provides a simplified illustration of the Inclusive Green Growth (IGG) DPL series breadth, complexity and rationale; the intersectoral cohesion and linkages among its PDOs, policies and outcomes; and interdisciplinary coordination consistent with the Program's purpose and objectives.

Figure 1. Overview of IGG DPL Series Policy Areas

1.5 Revised Policy Areas (if applicable)

15. Not applicable. The policy areas were not revised.

1.6 Other significant changes

16. No significant changes were made to the design, scope and scale, implementation arrangements and schedule, and funding allocations. Some IGG DPL2 prior actions were modified for clarity and to better reflect the progress of the policy pillars supported by the series and the actual measures taken by the Government. The changes to prior actions that were introduced in DPL2 are listed in Annex 7 (Table A1).

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2. Key Factors Affecting Implementation and Outcomes

2.1 Program Performance

17. This programmatic series consisted of two single tranche DPLs for a total amount of US$602.35 million (see Table 2 below). All prior actions were met at the time of signing the loan agreements (see Table 3 below). Tranche 1 was released ahead of expected release date in response to the GoM request.

18. This was an inter-sectoral operation with medium-long term perspective for inclusive green growth anchored to Morocco’s strategic objectives. All prior action-instituted policies remain in effect and are being advanced. Most of the prior action targets were met fully/substantially, some were exceeded. A few indicators fell short of the targets due to underestimated time/effort required to realize results and delays but are expected to be achieved in the near future because of the strong policy/legislature foundations, government commitments, stakeholder engagement and continued World Bank Group/Development Partners sectoral engagement. The IGG DPL series was instrumental in putting in place the needed legislative foundations for broad inter-sectoral reform. Its main impact supported the Government of Morocco to shift the country’s growth model towards an inclusive green growth path.

Table 2. Summary Table of DPL1 and DPL2Tranche # Amount Expected

Release DateActual Release

DateRelease

Tranche 1(DPL1 Loan 83250)

Euro 219.7 million(US$ 302.35 million equivalent disbursed)

20-Mar-2014 30-Dec- 2013 Regular

Tranche 2(DPL2 Loan 85730)

US $ 300 million(US$ 300 million disbursed)

20-Mar-2016 15-Jan-2016 Regular

Table 3. DPL1 and DPL2 Indicative TriggersDPL1 Indicative Triggers

List of prior actions from Legal Agreement/ Program Document StatusPolicy Area: 1.1 Management of coastal and marine assets;

DPL1 1. The Council of Government (Conseil du Gouvernement) has approved the draft Law on integrated coastal zone management, on May 16, 2013.

Completed

DPL1 2. The Council of Government has approved the draft Law on illegal fishing on March 28, 2013. CompletedPolicy Area: 1.2 Water sector governance.

DPL1 3. The Ministers of Interior, Agriculture and Water have issued the Inter-Ministerial Circular (Circulaire) requiring the conclusion of groundwater management agreements (contrats de nappes) on November 15, 2013.

Completed

Policy Area 2.1 - Low carbon growthDPL1 4. The Council of Government has adopted on November 14, 2013, the Decree on energy efficiency in

the building sector.Completed

DPL1 5. Order (Arrête) No. 3.69.13 dated August 19, 2013, introducing automatic price adjustments for diesel, gasoline and fuel has been published in the National Gazette No. 6182 dated August 29, 2013.

Completed

Policy Area 2.2 - Pollution managementDPL1 6. The three Orders (Arrêtes) No. 2942.13, No. 2943.13 and No. 2944.13 dated October 7, 2013, on

monitoring and controlling industrial wastewater discharges in the water domain stating a) general limit values; b) characteristic values and specific coefficients; and c) minimum treatment efficiency of industrial wastewater treatment plants, have been published in the National Gazette No. 6199 dated October 28, 2013.

Completed

DPL1 7. The Council of Ministers has approved on March 7, 2013, the draft Framework Law on environment and sustainable development setting forth, in particular, the establishment of a comprehensive green fiscal framework.

Completed

Policy Area 3.1 - Green technologies in the agricultural sectorDPL1 8. Order (Arrête) No. 3186-13 dated November 13, 2013 modifying and completing Order (Arrête) No.

368-10 dated January 26, 2010, on subsidies for agricultural equipment, introducing a subsidy for the purchase of direct seeding equipment, has been transmitted by the Minister of Economy and Finance to the General Secretariat of the Government for publication in the National Gazette, on November 19, 2013.

Completed

Policy Area 3.2 Diversification of rural revenuesDPL1 9. Order (Arrête) No. 3151-13 dated November 11, 2013, establishing the technical and economic

criteria setting the lease fee to be paid by aquaculture farms, has been transmitted by the Minister of Completed

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Economy and Finance to the General Secretariat of the Government for publication in the National Gazette, on November 15, 2013.

DPL2 Indicative Triggers Policy Area: 1.1 Management of coastal and marine assets;

DPL2 10. The Council of Government (Conseil du Gouvernement) has adopted Decree No. 2.15.769 regulating, inter alia, the formulation of the National Coastal Zone Management Plan (Plan National d'Aménagement du Littoral), on November 5, 2015.

Completed

DPL2 11. The Minister of Agriculture and Marine Fisheries has issued Decision No. 001/Cab/PM containing the National Enforcement Plan for Marine Fisheries (Plan National de Contr6le des Activités de la Pêche Maritime), on April 1, 2015.

Completed

Policy Area: 1.2 Water sector governance.DPL2 12. The Council of Government has approved the draft Law No. 36-15 on water, setting provisions for,

inter alia, participatory groundwater management, on November 19, 2015. Completed

Policy Area 2.1 - Low carbon growthDPL2 13. The Council of Government has approved draft Law NO. 48-15 creating the National Agency for

Electricity Regulation (Autorité Nationale de Régulation de l'Electricité), on September 17, 2015.Completed

DPL2 14. The Council of Government has adopted Decree No. 2-15-772 regarding access to the national medium voltage electricity network, on October 12, 2015.

Completed

DPL2 15. The Council of Government has approved draft Law No. 58-15 amending and completing Law No. 13-09, to provide renewable energy solutions for low voltage customers, on August 27, 2015.

Completed

DPL2 16. The 2015 Budget Law (Law No. 100-14), which increased the funding to social programs following energy subsidy cuts, has been published in the National Gazette No. 6320 bis, dated December 25, 2014.

Completed

Policy Area 2.2 - Pollution managementDPL2 17. The 2015 Budget Law, which introduced additional resources to depollution investments, has been

published in the National Gazette No. 6320 bis, dated December 25, 2014; and Order (Arrête) No. 2850.15 dated August 10, 2015, supporting the recycling framework for used batteries based on extended producer responsibility, has been published in the National Gazette No. 6406, dated October 22, 2015.

Completed

Policy Area 3.1 - Green technologies in the agricultural sectorDPL2 18. The Ministry of Agriculture and Fisheries and the Department of National Meteorology signed the

framework partnership agreement No. 03/2014/DMN-MAPM for the provision of agrometeorological information to the agricultural sector, on March 21, 2014.

Completed

Policy Area 3.2 Diversification of rural revenuesDPL2 19. The National Committee on Environmental Impact Studies has validated the Directive on

environmental impact assessments in the aquaculture sector on March 26, 2015; and the National Aquaculture Development Agency (Agence Nationale pour le Developpement de l'Aquaculture) has published on its website its strategic environmental assessment for the aquaculture sector, on October 1, 2015.

Completed

DPL2 20. The inter-ministerial agreement launching the national rural and eco-tourism program (Qariati) has been signed by the Minister of Interior, the Minister of Urbanism and Territorial Planning, the Minister of Agriculture and Marine Fisheries, the Minister of Tourism, the Minister of Handicrafts and Social and Inclusive Economy, the Minister of Youth and Sports, and the Minister in charge of Environment, under the Minister of Energy, Mines Water and Environment, on September 29, 2014.

Completed

2.2 Major Factors Affecting Implementation

19. The following factors impacted the achievement of program outcomes:

a. Strong Government commitment to the green growth reform program: The GoM had demonstrated strong level of ownership of the Green Growth agenda (see section 1.1). In 2017, Morocco’s National Sustainable Development Strategy was approved by the government, reflecting further Morocco’s inclusive green growth commitment.

b. In-depth dialogue between the GoM and the World Bank. The series built on solid sector dialogue over several years between the Government of Morocco and the World Bank on agriculture, water, energy, and environment. This DPL series built on and was accompanied by parallel financing and advisory services and analytics in sectors such as integrated coastal zone management (ICZM) (P121271), groundwater governance (P154280), resilience to water scarcity (P161239), and agriculture (P117081) (among others) that complemented the reforms of this DPL series.

c. Background analysis. The IGG DPL series was built on a solid and diverse body of analytical and technical work conducted by the Bank, Government and other financial and technical partners. Details are provided in Annex 7 (Table A2).

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d. Extensive consultation and participatory processes: the DPL series benefited from wide stakeholder involvement and consultation process that was carried out by the GoM on the proposed policies and legislation. This included consultation at the policy setting level that was carried out by the Government of Morocco since 2009 on green economy; sector policies; and consultation carried out within the framework of establishment of a national environmental charter in 2011. The legislative changes supported by the DPL series underwent broad-based consultative processes and targeted communication – for example, the removal of fossil fuel subsidies was preceded by a targeted government wide communication campaign aiming at building support for fossil fuel subsidy reform.

e. Appropriateness of operation’s design including relevance of the risks identified and effectiveness of mitigation measures. This was reflected in the realism and appropriate degree of complexity (for example, the team chose to limit the number of indicators in line with lessons learned from previous DPL operations at the World Bank); the DPL series addresses the major components of Morocco’s green growth agenda which resonated with the GoM at the highest political levels; reforms were in line with the technical and administrative capacity of the line agencies responsible for the different indicators; and analysis of the social, environmental and fiduciary aspects of the operation. At the same time, the design underestimated the time and effort needed to achieve some of the target indicators for PDO2 and PDO3.

f. Prior actions supported by DPL2 continue to be anchored in existing sector strategies and Government’s priorities. The Government’s request for an inter-sectoral design of the operation aims at leveraging the DPL series towards enhanced policy coordination and the alignment of sector strategies around common sustainability objectives.

g. The breadth of the policy reforms addressed through the IGG DPL series . The IGG DPL series addressed a broad range of reforms that touched on different elements of inclusive green growth including – coastal zone management, groundwater management, fisheries management; fossil fuel subsidies, renewable energy, energy efficiency, industrial effluent pollution, market based incentives for pollution reduction; and building resilience and diversifying rural economy through agriculture, aquaculture, and eco-tourism. The breadth of the reform however came at the expense of the depth at which each of the policy reforms could be addressed – limiting the number of prior actions for each policy area, and therefore, limiting the depth of the reform within each sector.

h. Differences in maturity and complexity of the reforms in the different policy areas. The breadth of the reform highlighted the uneven pace of reform implementation among the different sectors – where some were able to move faster than others – due to differences in maturity and complexity of the proposed reforms. Progress was slower in areas with nascent reforms like in the eco-tourism sector.

i. Lessons learned from previous operations. The IGG DPL series design incorporated lessons learned from past programmatic DPLs and the CPS progress report. These included: o Solid Bank-Government partnership supporting home-grown sector reforms built on strong

analytical foundations. The operation’s PDOs reflected the Government’s policy priorities;o A clear accountability framework supported by streamlined policy matrix rewarding priority

elements in the reform program; o Leveraging DPL support with investment and Program for Results (PforR) financing. The

IGG DPL built on synergies with ongoing operations and technical assistance.

2.3 Monitoring and Evaluation (M&E) Design, Implementation and Utilization:

20. The M&E design allowed for adequate follow up on the program’s implementation. A set of outcome indicators was agreed with the GoM during the preparation of DPL1 and were

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maintained, with some adjustments during DPL2, as some were overambitious for the lifetime of the DPL series. The number of indicators was kept to the minimum that is needed to measure outcomes without placing undue burden on the GoM. All PDO indicators had clear baselines, which were established during the first operation of the IGG DPL series. Due to the relatively short timeframe of the proposed program and the expected medium- to long-term impacts of the reforms supported, part of the selected monitoring indicators and associated target values focused on measuring intermediate outcomes, rather than development gains on the ground.

21. The institutional setting to monitor the results of the DPL series was based on the tripartite steering committee and the ministries and departments involved. The results indicators together with the availability and quality of data were discussed with each concerned counterpart during the preparation of the DPL series. The M&E system established effective mechanisms for data collection, taking into account background work and analysis to determine the baselines and targets for some indicators, for example modelling for energy efficiency, BOD load and capacity for renewable energy systems. The M&E design could have been further strengthened by establishing regular monitoring procedures for the indicators and a central repository of the information that is accessible to public (e.g. through a website).

22. The M&E implementation was carried out by the Ministry of Economy and Finance (MEF), Ministry of General Affairs and Governance (MAGG), and the sectoral ministries and organization responsible for the achievement of different indicator targets in partnership with the World Bank. They effectively monitored and evaluated the actions included in the Policy Matrix, collecting data needed from the various units within these institutions, as well as the other participating agencies, on time. World Bank staff worked with the key agencies to ensure joint supervision in the monitoring of project activities and allowing for an active flow of policy dialogue. They assessed and supervised implementation of the program, focusing on whether key agencies were carrying out the agreed policy reforms and undertaking due diligence in attaining the development objectives. As part of this process, some indicators were revised during the preparation of DPL2 to improve their realism. The collected data contributed towards the assessment of progress in achieving the prior actions in each of the six policy areas as documented in the Implementation Status and Results Report (ISR) for DPL1 and the mission aide memoires.

23. M&E utilization. The collected data contributed towards adjustments in the triggers and indicators during the preparation of DPL2 (see tables 1 and 2 above), as well as on new policies and activities.

2.4 Expected Next Phase/Follow-up Operation (if any):

24. The IGG DPL series has put in place the seeds for a broad reaching reform that will contribute towards shifting the trajectory of Morocco’s growth path towards inclusive green by putting in place the needed legislative foundations for reform. Important further steps and concerted efforts are needed to deepen the reach of the reforms in each of the individual sectors within the three pillars of Morocco’s inclusive green growth that were also supported through this DPL series. To ensure efficient implementation of the reform process, support is needed to further develop the institutional capacity needed to implement reforms in the energy efficiency and renewable energy sectors; expand the clean growth to other media, such as air quality; and consolidate efforts for the diversification of rural economy. This support can be carried out within the framework of Morocco’s inclusive green growth objectives as detailed in the national sustainable development strategy that was adopted in June 2017.

3. Assessment of Outcomes

3.1 Relevance of Objectives, Design and Implementation

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25. Relevance of Objectives. High. The objectives of the IGG DPL series are consistent with Morocco’s current development priorities, and with the current Bank country and sectoral assistance strategies and corporate goals.

26. Morocco’s current development priorities: Morocco has set an objective of shifting its economic growth and development path to one of an inclusive green growth (see section 1.1). The objectives of the GoM remain valid and relevant at the time of the ICR, and are expressed in Morocco’s National Strategy for Sustainable Development that was adopted by the GoM in June 2017, as well as Pillar 3 “Development of the economic model and promotion of employment and sustainable development” of the GoM 2016-2021 Program that was approved in April 2017. The three PDOs of the IGG DPL series corresponded to each of these objectives, and the prior actions have contributed towards institutionalizing the needed policy reforms for each of the policy areas.

27. The National Strategy for Sustainable Development sets the vision to “implement the foundations of a green and inclusive economy in Morocco by 2030” identifies seven areas: i) consolidate governance for sustainable development; ii) transition to green economy; iii) Improve the management of natural resources and strengthen the conservation of biodiversity; iv) Accelerate the implementation of the national climate change policy; v) Accord special attention to sensitive areas; vi) Promote human development and reduce social and territorial inequalities; and vii) Promote a culture of sustainable development. The DPL PDOs and the six policy areas fully contribute to the areas of National Strategy for Sustainable Development and are all reflected in the areas and strategic axes of the Strategy.

28. The IGG DPL objectives are highly relevant to Morocco’s Nationally Determined Contribution vision to increase resilience to climate change while ensuring a rapid transition to a low-carbon economy through adaptation and mitigation measures. Policy area 2.1 Low carbon growth of PDO 2 – “greening physical capital” has contributed to this vision through the removal of fossil fuel subsidies, putting in place the legislation needed that opens the door to energy efficiency and renewable energy development (prior actions). Policy areas: 1.1 management of marine and coastal resources, 1.2 (water sector governance), 2.2 pollution management, 3.1 green technologies in the agricultural sector and 3.2 diversification of rural revenues, all contributed towards setting in place the legislative basis for policy reform for the sustainable management of Morocco’s natural resources (coastal and marine, groundwater), for their preservation from pollution thus increasing their availability; and introducing sustainable management practices – all steps that enhance Morocco’s resilience to climate change.

29. Relevance to current Bank country assistance strategies, sectoral and corporate goals: The IGG DPL series objectives are highly relevant to the World Bank Country Partnership Strategy (2014 -2017) (the latest CPS available at the time of ICR preparation), which notes the World Bank’s renewed commitment to Morocco’s sustainable and inclusive growth to create employment and to achieve the twin goals of eliminating poverty and boosting shared prosperity. The CPS proposes to scale up support for Morocco’s green growth agenda, supporting innovative multi-sector approaches to sustainable and environmentally sound development, for the benefit of future generations and to improve private sector-led competitiveness and global integration. The IGG DPL series contributed to the three results areas of CPS 2014-2017 (Promoting Competitive and Inclusive Growth, Building a Green and Resilient Future, and Strengthening Governance and Institutions for Improved Service Delivery to All Citizens). More specifically, it contributed to the following CPS outcomes: 1.3 Increase the productivity and value-added of the agri-food sector; 1.4 Better leverage the socio-economic potential of integrated rural development and of tourism; 1.5 Improve reliability of electricity supply; 1.7. Improve access to and effectiveness of social protection programs, especially for youth; 2.1. Strengthen management of soil, coastal and water resources; 2.2 Increase renewable energy generation and enhance energy efficiency. See Table A3 in Annex 7 for details.

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30. The IGG DPL is highly relevant to MENA Climate Change Action Plan, which focuses on three core areas: i) Fostering water and food security; ii) Making sure cities are ready to cope with the impacts of climate change; and iii) lowering the emissions that cause global warming by improving energy efficiency and investing in renewable energy sources such as solar and wind, reducing pollution from industry, transport and waste, sequestering carbon from agriculture, and investing in agro-forestry and the preservation of forests. As part of Bank’s commitment to the region within the framework of MENA Climate Change Action Plan, is to support policy reforms that lay the foundations for a green future. This includes policies to encourage economic diversification, the shift toward low-carbon energy, better regulations for improved management of natural resources, and the lifting of fossil fuel subsidies that benefit the rich more than the poor and encourage wasteful use of energy. All of these elements were addressed in the IGG DPL series.

31. The draft Morocco Systematic Country Diagnostic (SCD) report, currently under preparation, identifies environmental sustainability, addressed through this DPL series, as a national priority in Morocco. The draft SCD notes that Morocco needs to take into consideration climate change impacts on its development strategy, and reconcile the long-term development and preservation of its environment and natural resources. Given the progress already made in the area of mitigation--- due in particular to the large investments that Morocco made in renewable energies and to the other ambitious investments planned under the NDC--- the priority is more focused on adaptation to climate change, especially within the context of water management that has wide ramifications on other sectors. Morocco places particular emphasis in its NDC on the National Water Strategy and the National Water Plan, recognizing that water resources are the main constraint on the country's sustainable economic and social development.

32. Relevance of design and implementation. Substantial. The design and implementation of the operation are highly relevant to the priorities of the country. The choice of a programmatic series of two single-tranche DPLs was in line with the medium to long term nature of the reform efforts, and allowed to stagger the achievement of prior actions as well as slight revisions of indicators where needed. The Government at the time had requested that the duration of the series remain within the Government’s term of office for clear accountability for program implementation and outcomes. It had expressed a preference for a series with two single tranche operations, in order to take advantage of the analysis, planning framework, implementation support and improved coherence offered by the DPL series. The programmatic option responded to GoM’s interest in a follow-up operation within a 24-month horizon from the World Bank Board’s approval of the first DPL, allowing the GOM to learn from the first years of the program’s implementation and refine the program’s design in the subsequent operation. The Government request for an inter-sectoral design of the operation was accommodated, leveraging the DPL series towards enhanced coordination and alignment of sector strategies around common sustainability objectives – the key goal of the national sustainable development strategy. Prior actions and triggers were all essential to achieving the results of the Government’s program, including transformational policy reforms.

33. The choice of indicators reflected well the objectives; the number of indicators was minimized to key indicators so as not to overburden the program. Notwithstanding, some of the indicators in the results framework particularly under pillar 3 were overambitious for the project life and could have had more reasonable targets, some of which were corrected during the second phase.

34. The implementation relied on active participation of the relevant agencies that had priority actions and indicators reflected. This instrument helped elevate the significance and strengthened implementation capacity to move difficult reforms forward, it also helped to bring stakeholders together to work towards achieving the IGG objectives. The Ministries of Environment, Economy and Finance, and General Affairs and Governance constituted the core group steering the operation, providing convening power and taking on the transaction costs entailed by coordination needs. The Ministry of Economy and Finance assumed the lead role in ensuring progress. The

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multi-sectoral nature of the operation was the key feature of the operation, but also an important challenge. The operation was timely and appropriate to the needs of Morocco.

3.2 Achievement of Program Development Objectives

35. The IGG DPL series marked a substantial shift in the way budget support for sustainable development is perceived. By focusing not only on ‘cleaning growth’ but also on ‘boosting growth’ and ‘creating an enabling environment for rural jobs’ in the future, the operation has been a pioneer in this field. Six policy areas contributed towards the achievement of the three IGG DPL series PDOs. These policy areas are: Policy area 1.1 Management of coastal and marine assets; and Policy area 1.2 Water sector governance contributed to PDO 1 (Improving the management of natural capital); Policy area 2.1 Low carbon growth and Policy area 2.2 Pollution management contributed to PDO 2 (Greening physical capital); and Policy area 3.1. Green technologies in the agricultural sector and Policy area 3.2 Diversification of rural revenues contributed towards PDO 3 (strengthening the diversification of the rural economy by leveraging human capital).

PDO 1. Improving the management of natural capitalRating: Substantial

36. Natural capital refers to natural resources such as coastal and marine resources, soil, forests, agricultural land, surface water and groundwater resources. In Morocco, natural capital makes up a sizable portion of the country’s wealth. Protecting and ensuring sustainable use of Morocco’s natural capital is important for the continued and sustainable economic growth of Morocco’s agriculture, tourism, and fisheries sectors.

37. The IGG DPL series addresses the protection and sustainable use of the following natural capital in Morocco: coastal zone ecosystems, fish stocks, and groundwater resources. Two policy areas contribute to the achievement of this PDO: Policy area 1.1 – management of coastal and marine assets; and Policy area 1.2 - water sector governance. The achievement of the PDO is supported by the following indicators: indicator 1: Number of regional coastal zone management plans approved; indicator 2: Number of regional maritime fisheries control plans approved; and indicator 3: Number of aquifers (nappes) in which groundwater abstraction is regulated by a groundwater agreement among water consumers.

Policy Area 1.1: Management of coastal and marine assets

38. Integrated Coastal Zone Management: The prior actions of this DPL series resulted in approval of Morocco’s first ever comprehensive law on integrated coastal zone management (ICZM) (no. 81-12) (DPL 1 prior action) and associated decree no. 2.15.769 (DPL 2 prior action). ICZM is a long-term management tool that aims to enhance the protection and sustainable use of coastal and marine resources. ICZM aims for a coordinated application of the different policies affecting the coastal zone and related to activities.

39. The approval of the ICZM law was a breakthrough in the management and protection of Morocco’s coastal zone. This was Morocco’s first comprehensive legislative tool for the protection and sustainable management of its 3,500km-long coastal zone. The law replaced fragmented legal texts that relied on a sector by sector approach to managing marine and coastal zones activities. Such a fragmented approach resulted in inefficient use of marine and coastal resources, and risked further missed opportunities for a more sustainable coastal development.

40. Among the key aspects of the new law are: The law provided legal definition of the coastal zone, incorporating marine and land components; it addressed marine and costal pollution and introduced permits with explicit limits, as well as fines in case of non-compliance; the law established a national committee and regional committees for coastal management, bringing together and mobilizing stakeholders from different sectors.

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41. Decree no. 2-15-769 detailed the process for the preparation of Morocco’s first National Coastal Zone Management Plan (Plan National d'Aménagement du Littoral - PNL)3, and the Regional Coastal Zone Management Plans (SRL). Figures A1 and A2 in Annex 7, summarize the key steps in the preparation of the PNL and the SRL4.

42. The MEMDD proceeded with the preparation of the PNL and the two SRLs (indicator 1) in parallel. The terms of reference for the preparation of the two SRLs were prepared, and budget was allocated in 2016. A call for tenders no. 78 / DOEP /20165 was issued at the end of 2016 for two regions: Rabat Salé Kenitra region (the capital region); and Tangier Region Tetouan Al Hoceima region – home to one of the largest ports in the Mediterranean. The tender was not successful and was relaunched in January 2018. The strong policy and legislative foundations established by the IGG DPL series and Government’s commitment ensure the preparation of two draft SRLs and their approval within a reasonable timeframe.

43. The approval process entails submission of draft SRL for opinion of a Regional Committee chaired by the Wali, and then for opinion of National Committee for Integrated Coastal Zone Management, chaired by MEMDD within a cumulative timeline of 145 days starting from date of submission of drafts to the Regional Committee. It should be noted that the GoM signed agreement in September 2017 with the United Nations Development Programme and with financing from the Government of Italy support that includes preparation of SRL for Oriental region to be completed by 2020. The Oriental and Tangier-Tetouan-Hoceima region cover the full Mediterranean coast of Morocco. This further strengthens the policy implementation.

44. The preparation of the PNL has proceeded in a timely manner, and a draft was presented in a stakeholder workshop on January 10, 2018 as per the legal requirements of the ICZM law. This would not have been possible without the two prior actions of this IGG DPL Series. Moreover, the new ICZM law facilitated the incorporation of ICZM into six local development plans and their approval by local councils under a parallel World Bank operation (Integrated Coastal Zone Management Project - P121271).

45. As a result of the DPL series Morocco: adopted legal framework for application of integrated coastal zone management; put in place the national and the regional committees that oversee the preparation and approval of the national and regional coastal zone management plan; prepared the first draft of the national coastal zone management plan, and is in process of preparation of the regional plans, thus, significantly strengthening the integrated coastal zone management in Morocco and shifting its trajectory. The achievements in this policy area are deemed substantial.

46. Combatting illicit and unreported fishing . Illegal fishing threatens the sustainability of Morocco’s fisheries, and the long-term livelihoods of population who depend on fishing income. Addressing illegal fisheries relies on the following mechanisms: i) establishment of regulatory mechanisms (legal texts and procedures); ii) establishment of verification and control mechanisms (traceability, declarations, electronic tools); iii) organization of enforcement (structure, methodologies, training); and iv) establishment of cooperation mechanisms (international cooperation). The IGG DPL series prior actions and target indicators supported putting in place

3 The MEMDD issued a note on the operationalization of legal and regulatory texts related to the Coastal Zone National Plan and Regional Coastal Zone Management Plans. Per article 13 of the draft decree no. 2-15-769, the governmental authority in charge of the environment has two years for the elaboration of the PNL before submitting it to the opinion of the National Committee. This period runs from the date of publication of Decree No. 2-15-769 in the Official Bulletin (i.e. 7 January 2016) – i.e. the PNL should be submitted for review of the Committee by January 2018.4 State Secretariat to the Minister of Energy, Mines and Sustainable Development, in charge of Sustainable Development. Note. Operationalization of legal and regulatory texts related to the coastline. National Plan and Regional Schemes of the Littoral. Available in French.5 Department of Observation, Studies and Planning (DOEP). Special conditions. Open invitation to tender on price offers N ° 78 / DOEP / 2016. Study for the Elaboration of Regional Schemes of the Coast For the account of the Direction of the Observation, the Studies and the Planning, in two lots, namely: Lot 1: Region of Rabat Salé Kenitra; Lot 2: Tangier Region Tetouan Al Hoceima. Available in French.

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regulatory mechanisms and organization of enforcement mechanisms to combat illegal and unreported fishing and complement Morocco’s efforts in the other two areas.

47. Regulatory mechanisms: Through the prior actions of the IGG DPL 1 and 2, the Government of Morocco approved the Law on Illegal Fishing (2013) (DPL 1 prior action), and the Minister of Agriculture and Fisheries (MAPM) issued decision (no. 001/Cab/PM) approving the National Enforcement Plan for Marine Fisheries (Plan National de Controle des Activités de la Pêche Maritime) (DPL 2 prior action). The National Enforcement Plan for Marine Fisheries was to be implemented through the preparation and implementation of regional enforcement plans by all the regional delegations in Morocco (indicator 2).

48. Organization of enforcement: A Directorate for the Enforcement of Maritime Fishery Activities was established in June 2016, tasked to coordinate the enforcement, and act as single point of contact on issues related to the fight against IUU fishing currently under implementation. To implement the objectives of the National Enforcement Plan, Regional Enforcement Plans were prepared in a highly consultative manner by all the 18 delegations of the Department of Fisheries 6 and approved by all regional DPMs (indicator 2). The implementation of the enforcement plans started on October 1, 2017.

49. It is expected that the reforms instituted in this IGG DPL series will strengthen the long-term capacity of Morocco to address its illegal and undeclared fishing activities, resulting in long term sustainability of its fisheries resources and their dependent livelihoods. The reform has set a precedent for the preparation of regional enforcement plans and for their implementation. The achievements under this policy areas are considered to be high.

50. On balance , the Program achievement in Management of Coastal and Marine Assets is considered Substantial in light of significant strengthening of policies and legislature and results expected to be achieved under the implementation of the coastal zone management and fisheries plans.

Policy Area 1.2: Water Sector Governance

51. This policy area addressed the critical issue of groundwater depletion in Morocco. Participatory groundwater management in the form of effective traditional or formal mechanisms to manage common groundwater resources contributes to decrease in the medium-to long term overexploitation of groundwater resources. This reduction of overexploitation is essential to build the resources’ long-term resilience and ensure the resilience of the water system to droughts and water scarcity. The two prior actions of this DPL series have put in place the legal basis to institute the use of water user contract agreements.

52. The Ministers of Interior, Agriculture and Water issued the inter-ministerial circular requiring the conclusion of groundwater management agreements (2013) (DPL 1 prior action). The circular defined the official steps required (both technical and process-related steps) to prepare participatory groundwater management contracts.

53. The Council of Government approved the water law (law no. 36-15) (DPL 2 prior action) setting provision for participatory groundwater management (2015). The new water law 36-15 (2016) is a world-class example of progressive legislation with respect to water resources management and one of the transformative outcomes of the DPL. The new law introduced reforms aimed primarily at consolidating decentralized, integrated, and participatory management and planning of water resources, strengthening consultation and coordination bodies and organizations through the establishment of water basin councils, establishing legal foundations to diversify

6 Between August-December 2015, pilot workshops were carried out within the Maritime Fisheries Delegations (DPMs) of Casablanca, Agadir and El-Jadida, aiming to support the incorporation of the National Plan objectives in the preparation of the Regional Enforcement Plans. This was followed in 2016 with a practical workshop at the national level for the benefit of regional service heads to assist the DPMs in the implementation of the PNC within the Regional Enforcement Plans. The practical workshop focused on.

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supply sources through the use of unconventional water resources including desalinated seawater, implementing water-related information systems, reinforcing the institutional framework and mechanisms for the protection and conservation of water resources, and strengthening financial instruments for the development of the water sector (abiding to certain principles such as “user pays/polluter pays”).

54. As a result of this DPL series, the Oum Er Rbia River Basin Agency (ABHOER) prepared the framework contract covering three of the eight aquifers in the Tadla system, including the two most vulnerable to the risk of overexploitation. The Steering Committee validated the framework contract on September 27, 2017 (indicator 3). The framework contract will be signed to enter into force. The ABHOER, as part of the DPL, identified hot spots, where communities have requested the ABHOER to support in managing the groundwater due to their concern over the rate of depletion. The ABHOER is, under its own funding, following on this request to pilot participatory groundwater management contract for the hot spots based on the demand and the state of depletion. It should be noted that this participatory framework contract would be the first inclusive contract in Morocco covering groundwater resources, building on the previous experience of the Sous Massa Basin.

55. For the purpose of this ICR the target is considered to be substantially achieved.7 The substantial achievement of this target indicator benefited from support of a Multi-Donor Trust Fund grant (Morocco - Strengthen Capacity for an Inclusive Design of Groundwater Management Contract for Green Growth Project - P154280), and Water GP trust fund (Water Partnership Program, WPP) that aimed to support the ABHOER in the inclusive design of the framework inclusive groundwater management contract, using a bottom-up approach. The management contracts included farmers - the largest in terms of numbers and water consumption, but also other stakeholders related to the region (Wali), industries and businesses.

56. The preparation of this framework contract is a significant step in groundwater resources management in Morocco, as it is the first contract to operationalize the ministerial agreement and provides a precedent for bottom-up participatory agreement. The GoM considers this a model contract that it looks to replicate in other regions of the country. It also contributes to the long-term demand management of groundwater resources, and therefore, their sustainable use. As such, the achievement in this policy area is deemed substantial.

57. Conclusion : The IGG DPL series contributed to improving the management of natural capital by setting the regulatory framework for integrated coastal zone management, combatting illegal fishing, and groundwater management in a participatory manner. Morocco now has a comprehensive integrated coastal zone management law, a national coastal zone management plan that is being finalized, and two regional coastal zone management plans that are being tendered. Moreover, the law has facilitated the integration of ICZM into six local development plans. Morocco has a world-example water law 35-16, and increased the number of aquifers that are covered by user agreement as a result of this IGG DPL series, and is implementing the eighteen regional enforcement plans for fisheries from October 1, 2017 – the approval of these plans was a target indicator of this IGG DPL and would not have happened without the legal basis (a priority action of this DPL series). Morocco’s sustainable development strategy was approved in June 2016, further emphasizing the green growth trajectory that the country has embarked on. As such, the achievements of the IGG DPL series in supporting PDO 1-improving the management of natural capital are considered substantial.

PDO 2. Greening physical capitalRating: Substantial

7 Reference to consultation email of November 30, 2017 with Mr. M. Bekhechi - Lead Legal Environmental Counsel / Consultant, this target is considered to be substantially achieved.

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58. Physical capital refers to infrastructure investments in various sectors such as energy, water, construction, transport infrastructure, etc. The long life-cycle of physical capital means that the type of capital in which a country invests, would shape the type of its growth trajectories for decades to come. Infrastructure policies are central to green growth strategies, because of the potential for regret and substantial potential for co-benefits8. Greening physical capital refers to investing in an infrastructure base that would put Morocco on a sustainable growth path, including ensuring the correct price signals.

59. PDO 2 supports the Government’s objectives of reducing adverse environmental impacts of infrastructure investments and promoting low carbon growth. PDO2 is composed of two policy areas: 2.1 Low carbon growth that focused on reducing fossil fuel subsidy, energy efficiency, and renewable energy; and 2.2 Pollution management. The achievement of this PDO is supported by the following results: Indicator 4: 3,403,165 m2 of new buildings integrating energy efficiency requirements and

respecting thermal regulations for new buildings Indicator 6: 0% total subsidy envelope to diesel, gasoline and industrial fuel (in % of GDP) Indicator 7: 1.63% of Social Cohesion Funds allocation as share of the total budget (excluding

debt service) Indicator 8: 24 industries submitted a funding request to the Voluntary Mechanism for

Industrial Depollution Indicator 9: 469 tons of BOD/year reduced industrial pollution (as measured by tons of BOD5

abated yearly) Indicator 10: 8 polluting products subject to green taxes or to conventions promoting recycling

value chains

Policy Area 2.1: Low carbon growth

60. Lowering fossil fuel subsidies . The prior actions of this DPL series led to approval of order no. 3.69.13 (2013) (DPL 1 prior action) that introduced automatic price adjustments for diesel, gasoline and fuel and resulted in complete elimination of subsidies and liberalization of prices for diesel, gasoline and fuel oil by December 2015. The approval of this order has benefited from a concerted government communication effort to popularize the reform in order to gain support for it and allay any fears of the reform adversely affecting the poor. The removal of the subsidy has been maintained to date, and is currently zero (indicator 6). The removal of these fossil fuel subsidies has made Morocco a world-wide example of reducing fossil fuel subsidies. The subsidies removed to date have been estimated to bring about an average GHG emission reductions of 6.6% annually between 2012 and 2030. Moreover, subsidy reform is an important enabling factor for the planned expansion of renewable energy (Merrill et al 2017) 9. Moreover, the subsidy removal and accompanying reforms reduced the overall subsidy bill to below 2.5 per cent of GDP in 2015, from a peak of 6.6 per cent of GDP in 2012.

61. The removed subsidies benefited the poor the least, and their elimination allowed the GoM the needed fiscal space to expand the Social Cohesion Fund (FCS) program – helping to mitigate the impact of fuel price liberalization on low-income households. The FCS is responsible for financing the main social safety nets programs in Morocco including: Tayssir – an education conditional cash transfer program; Ramed – non-contributory health coverage scheme; Poor and Disabled Population Cash Transfer Program; and the Cash Transfer Program for Poor Widows. The Tayssir program has expanded from 80,000 families in 2009 to 522,000 families and 828,000 student beneficiaries in 2015-2016. RAMED, increased its coverage from 5.1 million beneficiaries in mid-2013 to 9.9 million beneficiaries by August 2016.

8 World Bank. 2012. Inclusive Green Growth: The Pathway to Sustainable Development. Available online: http://siteresources.worldbank.org/EXTSDNET/Resources/Inclusive_Green_Growth_May_2012.pdf9 Merrill L, Richard Bridle, Markus Klimscheffskij, Paula Tommila, Lucky Lontoh, Shruti Sharma,Yanick Touchette, Phil Gass, Frédéric Gagnon-Lebrun, Lourdes Sanchez and Ivetta Gerasimchuk. 2017. Making the Switch From fossil fuel subsidies to sustainable energy. Available online: http://norden.diva-portal.org/smash/get/diva2:1094676/FULLTEXT02.pdf

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62. The increased fund allocation to FCS was captured through a target indicator (indicator 7) that was introduced during the preparation for IGG DPL2. The budget allocated to the FCS has doubled in total terms from MAD 2 million in 2013 to MAD 4 million in 2014, 2015 and 2016. It also increased as a percent of the total budget from 0.8% of the total budget excluding debt service in 2013 budget to 1.6% in 2014, 2015 (DPL 2 prior action), and 2016 Government budgets. The removal of subsidies contributed towards achievement of this indicator. The reliance on the Social Cohesion Fund as the budget vehicle to finance the FCS programs provides assurances regarding the financial sustainability of government policy. It should be noted that the GoM has developed implementation plans for removal of subsidies from liquefied petroleum gas – though not yet implemented. The achievements in this policy area are considered high.

63. Energy efficiency in buildings . Increasing energy efficiency decreases demand for energy – thus saving funds and reducing particulate matter and greenhouse gas emissions, thus contributing to greening physical capital. Energy efficiency requires a solid legal, regulatory and institutional framework. As a prior action for this DPL series, implementing decree no. 2-13-874 on energy efficiency in the building sector (2013) was adopted (DPL 1 prior action). This decree aims to reduce the heating and cooling requirements of buildings; improve thermal comfort in buildings; participate in lowering the national energy bill; reduce greenhouse gas emissions. The approval of this decree is a crucial step in paving the way for implementation of energy efficiency technologies, as it lays down for the first time, the minimum technical specifications in terms of thermal performance (roofs, exterior walls, windows, floors, etc.) for new constructions.

64. The Moroccan Agency for Energy Efficiency (AMEE) has included the implementation of the code of energy efficiency in the building sector among its flagship measures in its strategy for 2018-2021. Progress in energy efficiency in buildings was delayed due to delays in the publication of the implementation decrees of law no. 47-09, and the mobilization of the necessary financings. Full implementation of the decree requires issuing of operational and technical regulations at the local levels, preparation of technical instructions and guidelines for its application, and carrying out dissemination and training to key stakeholders on the application of detailed regulations and guidelines.

65. Among its current activities, AMEE with support from the French Environment and Energy Management Agency are conducting surveys among architects on actual implementation of new energy efficiency requirements in new buildings. The survey was not completed at the time of ICR preparation.

66. In absence of survey results, modeling efforts estimate that approximately 3 million square meters of new build per year incorporate the new energy efficiency rules (indicator 4)10. The model assumes a compliance rate of 7-9% for domestic and 36% for commercial offices. The aforementioned estimate by far exceeds the target indicator, which is attributed to a higher than expected construction rate. Given the approval of key legislation, institutional commitment, and steps taken to raise awareness and engage with the building industry professionals, progress in this policy area is deemed modest with the expectation that the intended outcomes are attainable despite the incurred delays.

10 The status quo scenario of the model reflects the reality and shows little uptake of new requirements by investors after 2015. In policy reform scenarios, the study simulates actual implementation of all these missing technical regulations, trainings and capacity building, as well as other support measures that are not yet applied in Morocco. As a result, the uptake of the energy efficiency measures compatible with new requirements begins to pick up since 2015 at different rates depending on scenarios and as permitted by the annual new built rate in the building sector.

Overall compliance is estimated at 8%, with uptake in the domestic sector and commercial offices. Despite the low compliance, the absolute amount of compliant floor area is quite large due to the large amount of new build. The assumptions on build rate, were taken from a variety of sources, including the NAMA Habitat analysis (which suggests for example more than 2 million new homes over the period 2011-2026) as well as in some cases historic build rates. The numbers correspond to the single year 2015. The model calculations are in 5-year steps, so the next year calculated is 2020; for 2016, it is proposed to duplicate the results for 2015.

Source: “Support the Government of Morocco in the implementation of its NDC in selected sectors (P159288).

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67. Enabling the deployment of renewable energy . As mentioned above, in 2009, Morocco made the strategic decision to maximize use of its domestic renewable energy and adopted a National Energy Strategy, with a view to reducing the country’s import dependency, lowering the energy, intensity of the economy and mitigating climate change. A prior action of IGG DPL series led to approval of law no. 48-15 (2015) (DPL 2 prior action), creating the National Agency for Electricity Regulation (Autorité Nationale de Régulation de l'Electricité - ANRE), a financially autonomous regulatory body that aims to ensure the smooth operation of the free electricity market. ANRE aims to ensure compliance by operators with the rules in force, define the tariffs and conditions for access to the transmission and interconnection network, and maintain the competitive viability of the operators. It should be noted that the role conferred to ANRE is confined to policing the power generation regime introduced under the renewable energy law. The law paves the way to a separation of ownership and operations of grids from power generation and sales to end-user’s activities. This cautious approach to the introduction of an independent regulation authority is considered to be more realistic than pursuing a body with wider prerogatives in an environment where the political establishment is not necessarily favoring an active independent authority. The appointment of the president of the agency is underway, and once on board, will be followed by appointment of board members.

68. Law no. 13-09 provides that any natural or legal person may produce electricity from renewable energy, which can then be used by the producer to meet their energy demand or fed into medium or high voltage grid and sold to users with a suitable type of connection. A prior action of this DPL resulted in approval of law no. 58-15 (DPL 2 prior action) that expanded the renewable energy solutions of law 13-09, to low voltage customers, thus opening of the low voltage renewable energy market. It also led to approval of decree no. 2-15-772 (2015) (DPL 2 prior action) regarding access to the national medium voltage electricity network.

69. Despite investor demand, the operationalization of concrete projects is contingent on the pursuit of regulatory progress to open up the low and medium voltage to investors. As a first step, the implementation of a decree fixing the regional envelopes (predefined amounts of green capacity to be added each year established at a regional level for each electricity distribution zone) co-signed by the MEMDD and the Ministry of the Interior need to be approved. As such, the total capacity of distributed medium and low-tension grid connected renewable energy systems is 0 MW (indicator 5), and this indicator has not been achieved to date but is expected to be achieved by end of 2019 and remains a high priority in the country’s inclusive green growth agenda.

70. Over the last 25 years, the structure of Moroccan power generation evolved dramatically, from a configuration where oil-fired generation dominated to the current situation where coal and natural gas account for 77% and renewables for 15% of power generation. Between 2013 and 2016, Morocco’s power generating capacity increased by 2000 MW or by 32%. In line with the National Energy Strategy, renewable energy sources accounted for 60% of this capacity increase. Morocco, an energy importing country, aims to reduce its energy dependence to 52% by 2030. This reduction is due in large part to development of renewable energy (solar, wind, hydro). The current share of renewable energy in the energy mix is 35%, which includes 2% solar energy, 11% wind energy and 21% hydroelectric energy11.

71. Morocco’s National Energy Strategy that addresses the key aspects of energy efficiency and renewable energy, aims to increase the share of renewable energies to 42% of installed electricity capacity by 2020 and 52% by 2030. The National Energy Strategy prioritizes energy efficiency – focusing on transport, construction and industries to achieve the 5% energy saving target by 2020 and 20% in 2030. This is a high visibility agenda in Morocco, and the policies instituted in this DPL series are expected to continue.

11 Ministry of Energy Data. 2017.

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72. As a result of this DPL, the legal instruments for the establishment of an independent electricity regulatory body, and for opening of the low, medium and high voltage markets to independent producers are now in place. These are crucial first steps in the process of promoting the use of renewable energy and opening the renewable energy market in Morocco. While the target indicators have not yet been fully met, the Government’s continued strong commitment to these reforms is expected to ensure achievement of the intended outcomes in the near future. Additionally, the World Bank (WB) and development partners remain engaged in the energy sector and support Morocco’s National Strategy for Sustainable Development and its core objectives, among which energy efficiency and renewable energy are central.

73. The impact of the subsidies removal is an important first step that opens the door to subsequent progress in energy efficiency and renewable energy, its projected impact on reduction of GHG emissions (para 59, estimated 6.6% annually 2012-2030) and on providing the fiscal space to increase funding to FCS; as well as the strong policies and commitments towards energy efficiency in buildings and renewable energy and progress to date that, though short from reaching the targets, are nonetheless essential in ensuring further advancement. On balance, performance in Policy Area 2.1-Low carbon growth- is considered to be substantial.

Policy Area 2.2: Pollution management:

74. Water Pollution. Industrial pollution contributes significantly to the degradation of the quality and productivity of natural resources, especially water. The prior actions under the DPL1 facilitated the publication in October 2013 of three decrees on the control of industrial wastewater discharges in the public water domain (orders no. 2942.13, 2943.13, and 2944.13) (DPL 1 prior action) – an important step in improving the implementation of industrial pollution control. The decrees state general limit values, characteristic values and specific coefficients, and minimum treatment efficiency of industrial wastewater treatment plants.

75. Funding from the European Union allowed the GoM to experiment with a mechanism to support industries in their depollution investments. The Voluntary Mechanism of Industrial Water Remediation (MVDIH) was set up through the signature of an agreement on December 8, 2011 between the MEF, the MEMDD and the Ministry of Water (representing the River Basin Agencies) for a three-year period (2011-2013). However, the MVDIH was underutilized due to a cumbersome application process.

76. DPL2 prior action simplified the application process for small and medium enterprises (e.g. olive oil producers), and renewed its financial commitment to the MVDIH by allocating additional resources in the 2014 and 2015 budgets. Since the simplification of application procedures of the MVDIH, the number of industrial pollution control projects increased considerably. As of September 2017, 24 enterprises submitted requests for financing for the MVDIH versus a target of 3 (indicator 8), and of these 20 have signed their financing agreements. The total agreements signed are for 78.52 MDH – representing 80% of the funds. The BOD5

reduction achieved to date is 469 tons / year versus a target of 200 tons/year (indicator 9). As such, the achievements in this policy area are considered high.

77. Other pollutants. This policy area aims to extend the green fiscal framework to other pollutants and move towards a greater producer responsibility approach, under which the environmental costs of polluting products are integrated into their market price to finance their recovery, recycling and their elimination and / or recovery. The DPL2 prior action made it possible to set the regulatory framework for the collection and recovery of used batteries based on the principle of increased responsibility of producers. The framework law on environment and sustainable development no. 99-12, published in the official gazette no. 6240 of March 20, 2014 (DPL1 prior action), has formalized the application of the polluter pays principle in Morocco.

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78. Eight pollutants are now subject to environmental taxes or subject to partnership agreements for the organization of the recycling process (DPL 2 prior action) ( indicator 10): 8 (plastic, sand, used batteries, used lubricating oils, used tires, paperboard, used food oils). Moreover, a partnership agreement for the operation of collection and disposal of plastic bags was signed, and feasibility studies are underway to examine the feasibility of extending the mechanism to electronic waste, construction and demolition waste, and vehicles at the end of the lifespan. To support the activities, the MEMDD is updating the technical manual targeted at SMEs for recycling plastic waste. These are important contributions towards the gradual reduction of pollution particularly hazardous waste and plastics – and an important contributor to land based pollution of oceans). As such, the achievements under this policy area are considered high.

79. Conclusion : In terms of greening physical capital (PDO2), the regulatory base that opens the door for energy efficiency and renewable energy has been put in place; fossil fuel subsidies have been eliminated and additional budget was allocated to the Social Cohesion Funds that expanded its programs. The DPL series also contributed towards assisting small and medium enterprises to benefit from MVDIH financing to prepare themselves to be in line with the liquid effluent standards that came into effect in January 2018, incentives were put in place that helped at least 24 enterprises address their wastewater effluents and helped MVDIH reach a disbursement rate of 80%; provided ecotax incentives in budget law of 2016 and lead to establishment of mechanisms for at least 7 products and 3 products. Consequently, on balance, the PDO2 – Greening physical capital- achievement is considered substantial.

PDO 3. Strengthening and diversifying the rural economy by leveraging human capital. Rating: Modest

80. Human capital refers to the skills and capacities that reside in people and that are put to productive use12. Morocco is characterized by inequality in living standards between rural and urban areas attributed to reliance on low productivity subsistence agriculture, weak economic diversification, failure to leverage human capital endowments and a high gender gap. The IGG DPL series aimed to leverage human capital by putting in place reforms needed to address inequality through strengthening and de-risking agriculture and diversifying rural economy. The IGG DPL series address two policy areas: Policy area 3.1: Green technologies in the agricultural sector; and policy area 3.2: Diversification of rural revenues. The achievement of this PDO is supported by the following results: Indicator 11. 2% of the envelope allocated to direct seeders in the total FDA envelope

allocated to seeders (traditional and direct); Indicator 12. 5.5% of DMN revenues from agro-meteorological services; Indicator 13. 367 aquaculture sector jobs created (gender disaggregated);

Policy area 3.1: Green technologies in the agricultural sector

81. The IGG DPL series supported the national green growth agenda by increasing the supply of agrometeorological information and facilitating the diffusion of new, resilience-building technologies such as direct seeders.

82. Morocco’s agriculture sector is highly vulnerable to climate variability. The 2010 World Development Report ranks Morocco amongst the countries for which climate change will have the greatest impact on agricultural yields. Morocco is susceptible to chronic drought13, and climate change is likely to exacerbate water scarcity, reduce yields, and increase volatility of agricultural production, with substantial variation between regions14. With 40 percent of the Moroccan

12 WEF (World Economic Forum). 2015. The Human Capital Report 2015. Prepared in collaboration with Mercer. Available online: http://www3.weforum.org/docs/WEF_Human_Capital_Report_2015.pdf13 For example, the 1994/95 drought caused agricultural GDP to fall by 45 percent and total GDP to fall by 8 percent.14 World Bank - Morocco study on the impact of climate change on the agricultural sector 2009: René Gommes, FAO/NRC Tarik El Hairech, DMN Damien Rosillon, consultant Riad Balaghi, INRA Hideki Kanamaru, FAO/NRC

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population depending on agriculture for their livelihoods (and 85 percent in rural areas), climate change directly threatens the achievement of the country’s SDGs. Morocco has committed to reducing its total GHG emissions by 42 percent below BAU levels by 2030. On mitigation, the NDCs are based on the implementation of 24 actions, 11 of which in Agriculture, Forestry and Other Land Use (AFOLU).

83. Building the resilience of agricultural sector is a key pillar of Morocco’s NDC, and the effort is likely to continue. The NDC forecasts that, between 2020 and 2030, the implementation of adaptation programs will cost at a minimum USD 35 billion for the most vulnerable sectors - water, forestry and agriculture.

84. The Government of Morocco has been advocating for and promoting greater investments in climate change adaptation and mitigation in the agri-food sector, nationally and regionally. At the national level, Morocco has demonstrated its commitment to climate change action in the sector through the implementation of two sector strategies, the PMV and PNEEI: The Plan Maroc Vert (PMV) – Green Morocco Plan – aims at reducing dependency on crops

vulnerable to climate change by supporting switching from cereals to perennial crops (such as olive and fruit trees) in marginal areas; promotes cactus plantation for revegetation of bare and eroded land and palm trees to combat desertification in oases areas; and improves rangelands management, linked to support for development of the value chains likely to generate additional employment.

In irrigated areas, the National Irrigation Water Saving Program (PNEEI) works with the PMV to promote more efficient use of the scarce water through improved water service and more efficient irrigation technologies which allow farmers to adjust to the increasing variability and potential overall reduction in water availability. Combined with ongoing efforts to establish effective, participatory management of aquifers, the program is expected to improve the water productivity.

85. Improving seeding practices. Conservation agriculture - characterized by minimal disturbance to soil, permanent soil cover, and intercropping - helps to reduce soil erosion, increase soil organic matter and increase resilience to climate change. Direct seeding is a technique that uses special seeding machinery to avoid plowing as part of conservation agriculture. This technique contributes to stabilizing yields under drought conditions, controls erosion, and reduces energy use and consequently greenhouse gas emissions.

86. DPL1 prior action led to issuance of order no. 3186-13 (DPL 1 prior action) introducing subsidies for the purchase of direct seeding equipment. The subsidy became effective in 2015. Since then, the share of envelope allocated to direct seeders in the total FDA allocated to seeders ( indicator 11) has increased from 0% in 2014 to 2% in subsequent years (2015-2017) (see Annex 7 – Table A4). This increase is more modest than was expected (initially target set at 16% and then revised during DPL2 preparation to 6%). The slower uptake was attributed to lower overall demand and a concurrent complimentary GEF grant that funded purchase of direct seeding machines (over 10 direct seeders were provided to different farmer associations). The achievement in this policy area is considered modest.

87. Nevertheless, Morocco is undertaking steps to build the resilience of its agriculture sector, such as: Morocco installed the MOSAICC v.1.0 system, a tool designed to measure the impact of climate change on agriculture, in a number of its organization; increased use of drip irrigation to cover almost a third of its irrigated lands – a case in point is increase of rate of participating farmers using drip irrigation (in targeted area Doukkala-Haouz-Tadla) from 1% in 2013 in to 50% by 2016; and is adopting solar energy to power water pumps for irrigation.

88. Moreover, the World Bank is continuing its support to the GoM’s Plan Maroc Vert objectives through Strengthening Agri-Food Value Chains Program-For-Results (P158346) that aims to accelerate the transformation of the agri-business sector towards greater value addition and market

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inclusion of small and medium producers and enterprises, and which will be key to ensuring that climate-smart agricultural activities at the production level will be sustained over time, thus contributing to the achievement of Morocco’s NDC targets in agriculture, and to the policy area of greening technologies in the agriculture sector.

89. Enhancing quality of weather information to support agricultural productivity. The IGG DPL series aimed to strengthen the agricultural rural economy by leveraging human capital through this institutional coordination and provision of greening technologies in the agriculture sector. The quality of meteorological information and its timely translation into understandable messages to the farmers are necessary conditions for strengthening the resilience of the most vulnerable rural populations and to help them maintain their yields and productivity, thereby keeping more of the income which could have been lost to droughts. Warmer, drier conditions and increased climate variability weaken farmers' ability to cope with using their traditional knowledge. Providing relevant agro-meteorological information requires having a well-designed and functional physical meteorological station network and institutional coordination facilitating the mobilization of the knowledge and skills needed to translate raw data into information that can be easily understood and immediately used by farmers to plan accordingly.

90. The Framework Partnership Agreement signed between MAPM and the DMN (DPL 2 prior action) details the different domains of cooperation between the two institutions. These include: optimization and management of the MAPM’s agrometeorological network – diagnostic and upgrading of MAPM’s network and assessment of a possible handover of its management to DMN, ii) Exchange of meteorological and agro-climatic data as well as meteorological forecasts, iii) capacity building directed towards MAPM staff in the domain of meteorological data use, and iv) reinforcement of research and development actions by pooling their respective expertise in projects pertaining to the development of agrometeorological services.

91. In fulfillment of the framework agreement, the DMN conducted a comprehensive diagnosis of the MAPM stations (i.e. almost 300 automatic stations) to decide how to transfer the management of the network of MAPM stations to the DMN. The diagnosis was initiated with the support of the Minister of Agriculture and Maritime Fisheries, who circulated a note requesting a strong collaboration at the level of regional entities. In parallel, the DMN internally sensitized the regional directors. The diagnosis consisted of 4 phases: i) inventory of the stations, ii) inventory of fixtures; iii) definition of an optimization strategy; and iv) development of an upgrade strategy. The diagnosis was finalized in 2017 and served as a basis for negotiations for a new agreement between the MAPM and DMN in 2017 that formalized the transfer of the management of the MAPM stations.

92. The results of the close collaboration allowed by the signing of the framework partnership agreement allowed the MAPM to make detailed observations, which proved useful during the crop year (2015-2016) marked by severe drought. This successful collaboration with the MAPM serves as a basis for future DMN collaborations with other public entities for the provision of meteorological information services, such as: The Office of the High Commissioner for Water and Forests, the River Basin Directorates, the Roads Directorate, the National Railways Office, etc.

93. The indicator aims at capturing the strengthened collaboration at the institutional level between the MAPM and the DMN, which supports the agricultural economy. The airports authority was the only client of the DMN for their meteo services. As the MAPM became a new customer following the signature of the agreement, it is expected that the DMN revenue stream to reflect the services provided to MAPM. The target value was reduced from 15% to 9% as the DMN signed a new agreement with the Ministry of Water for flood prevention – therefore, increasing the total DMN revenues (i.e. denominator). Approximately 5.5% of DMN revenues are from agro-meteorological services (Indicator 11). As such, the achievement in this policy area is considered modest.

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94. While the target is partially achieved, Morocco is continuing with the efforts to diffuse agro-meteorological information to farmers. These efforts are supported by the World Bank Strengthening Agri-Food Value Chains Program-For-Results (P158346) that includes under its results area 1, activities spurring the diffusion of agrometeorological information to farmers, which increases their resilience to climate change, and therefore contributes towards the policy area of strengthening rural economy.

Policy area 3.2: Diversification of rural revenues

95. The inequality of living standards between urban and rural areas in Morocco is the result of poor diversification of economic opportunities in rural areas and underutilization of human capital. Rural economies therefore need the development of labor-intensive sectors with more and better job opportunities. This policy area aims to support the creation and growth of new sectors in rural areas: aquaculture and ecotourism activities.

96. Aquaculture. Aquaculture development is one of the five pillars of the Government's Halieutis Strategy. In 2011, the government of Morocco established the National Agency for Aquaculture Development (ANDA), providing a new impetus for the development of aquaculture in Morocco. This was followed by the introduction of targeted incentives for private investment. Technical and economic criteria for aquaculture farm license fees were established (DPL 1 prior action) - marking a milestone in the development of the development framework of the sector. This prior action contributed greatly to the “jurisdictional certainty” – which provides potential investors with trust in the legal regime needed to launch aquaculture investments.

97. Further, and in recognition of the need to control, to the greatest extent possible, the environmental risks associated with development of the sector, ANDA strengthened the regulatory framework on environmental impacts of investments in aquaculture. Thus, prior action under DPL2 led to the preparation and validation of the Framework Environmental Impact Assessment in the Aquaculture Sector (2015); and commissioned a broad, sector-wide Strategic Environmental Assessment (SEA). The SEA and the framework Environmental Impact Assessment (EIA) helped to decrease the environmental risk associated with the sector further facilitating private sector entry. Through these two deliverables, the DPL series contributed significantly to the regulatory framework of the sector, and contributed to a more favorable climate for private sector investment.

98. The SEA for aquaculture in Morocco provided an opening for dialogue among the various stakeholders including the relevant agencies responsible for environment, tourism, etc. around the issue of aquaculture development, and alleviated some of the concerns or fears (in large part due to lack of knowledge and understanding of the impacts of aquaculture) among key stakeholders. The SEA output also provided guidance at the national and regional levels, fostering dialogue and enhancing support. The specific Directive on aquaculture that was issued by MEMDD to complement the existing EIA Law provided detailed and specific procedures to monitor and control the environmental impacts of aquaculture investments (DPL2 Prior Action). ANDA prepared an Environmental Guide on aquaculture specifically targeted at the operators and investors launching new farms in response to ANDA’s Request for Proposals (RFPs).

99. Aquaculture in Morocco is distributed along the Mediterranean and Atlantic coasts and focuses on three types of production: finfish farming, shellfish farming, and algaculture. The structural reforms instituted as a result of IGG DPL series opened the door to investments, which, by 2016, had increased to 21 aquaculture farms providing 200 full time jobs. By September 2017, the number of jobs created (indicator 13) has further increased 367, with 21 jobs for women. The jobs created in aquaculture should mainly represent conversion of fishermen to this new sector, and therefore workers with a male majority. In addition, the Call for Expressions of Interest for the Dakhla region has generated considerable interest, which should help the sector easily meet the targeted number of jobs created. The call for bids yielded more than 1,300 applications, of which 224 were selected. As a result, ANDA expected that by the end of 2018 more than 2,000 jobs will

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be created in Dakhla alone and this indicator will be exceeded. As such, the achievement in this area is deemed substantial.

100. Nature based tourism. This policy area aims to protect Morocco’s natural resources and create local economic revenue through additional investment in physical and human capital, to diversify tourism products and take advantage of the full range of Morocco's natural resources. An integral part of the ambitious tourism sector development strategy (Vision 2020), the Ministry of Tourism's "Qariati" program aims to develop ecotourism in rural areas. The Inter-Ministerial Agreement launching the National Rural Ecotourism Program "Qariati" was signed September 29, 2014 by the Minister of the Interior, the Minister of Urban Planning and Regional Development, the Minister of Agriculture and Maritime Fishing, Tourism Minister, the Minister of Youth and Sports and the Minister delegate at the MEMDD in charge of environment (DPL 2 prior action).

101. The purpose of the Qariati program is to develop tourist amenities that would provide quality product experience of Morocco while diversifying the rural economy and increasing jobs. This is to be achieved through:a. Develop themed scenic routes (panoramic, natural, discovery, sports, craft, etc.) to diversify

Moroccan tourist areas;b. Improve tourist signage (directional and interpretation) to facilitate legibility of the routes,

heritage interpretation centers (CIP) and reception facilities;c. Develop natural, artisanal and terraced site animation;d. Promote investment in nature based tourism in rural areas.

102. The target for eco-tourism sector jobs created (indicator 14) was premised on optimistic expectations for forthcoming financing and investments as part of the Government’s Qariati program, including possible enabling environment support through a World Bank-financed Program-for-Results (PforR) (proposed Tourism and Local Economic Development Program-P154715) which did not materialize. The earlier proposed operation’s scope and strategic relevance became less pertinent in light of the new MNA Regional Strategy, which emphasizes private sector-led efforts in this sector.

103. The SMIT (Moroccan Agency for Tourism Development) has worked on building the institutional and governance structure (enablers) and continued to seek financing for the implementation of the Qariati program. For example, to date, the governance structure for the Qariati program at the national, regional and provincial levels has been established; four regional conventions were signed; and the management plan at the level of each region to manage the assets of each program have been developed. The GoM is still committed to implement the program, and has ongoing discussions with the French Development Agency for support for its implementation. This mobilization and institutional arrangements enhance readiness for eco-tourism investments and the likelihood of job creation in the medium-long term to help diversify rural revenues as intended under Policy Area 3.2 from this perspective, achievement in nature based tourism is considered modest.

104. Conclusion : The prior actions of this IGG DPL series have opened the door to subsidies for direct seeders; and for enhancement of the agrometeorological services – which contribute towards enhancing the resilience of agricultural sector in rural areas towards climate change and strengthening of the rural economy. As a result of this DPL, a precedence is set for a contract that is signed between the MAPM and the DMN for provision of meteorological information services that benefit the farmers. This helped diversify the DMN revenue (that formerly depended only on airport services). The IGG DPL de-risked the aquaculture sector and set it on a solid footing for investment –the targeted number of jobs was substantially achieved (73%) and is expected to be exceeded. The aquaculture sector today is in a different place than it was before the IGG DPL series: the prior actions combined with implementation of the aquaculture SEA have alleviated investor and stakeholder risks associated with entry into the sector. In diversifying the rural economy through eco-tourism, the IGG prior

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actions have led to the establishment of local development entities tasked with the implementation of the national rural and ecotourism program Qariati. As a result of IGG DPLs, investments in aquaculture farms increased to 21, providing 367 full time jobs and sustainable livelihoods. On balance, the PDO 3 - Strengthening and diversifying the rural economy by leveraging human capital achievement is deemed modest.

3.3 Justification of Overall Outcome RatingRating: Moderately Satisfactory

105. The overall outcome rating for the IGG DPL series is rated moderately satisfactory. This reflects high rating for relevance of objectives, substantial for design and implementation relevance (section 3.1), and substantial for achievement of PDO 1 and PDO2, and modest rating for achievement of PDO 3 (section 3.2).

3.4 Overarching Themes, Other Outcomes and Impacts

(a) Poverty Impacts, Gender Aspects, and Social Development

106. The DPL series contributed towards poverty and social development aspects through the following:a. Enhanced management of renewable natural resources (fisheries, aquaculture, groundwater)

that influence job creation and sustainability of the resource itself, which in the long term contributes to sustainable livelihoods.

b. Enhanced stakeholder participation in management of natural resources – for example in the case of framework contract for groundwater management.

c. Widened the beneficiary base of the FCS programs as a result of doubled budget allocation to FCS programs – with their social and poverty reducing objectives.

(b) Institutional Change/Strengthening

107. The IGG DPL series contributed towards strengthening the longer-term capacity and institutional development within the targeted sectors through the adoption of necessary laws and regulations and building institutional coordination mechanisms. These measures are likely to continue and be further strengthened with time. Examples include:a. Building the capacity of the MEMDD to address environmental and social impacts of

aquaculture through the preparation of strategic environmental assessment and framework environmental impact assessment of the aquaculture sector.

b. Enhanced capacity of MEMDD and relevant national stakeholders in preparing the national coastal zone management plan which anchors the regional coastal zone management plans.

c. Enhanced capacity of the fisheries departments at the local and central levels to prepare and implement the fisheries control plans.

d. Capacity of the DMN to sign contracts for provision of meteo services with new clients.e. Capacity of the River Basin Agencies to carry out consultations and prepare bottom up

framework contracts for groundwater management.

(c) Other Unintended Outcomes and Impacts (positive or negative)

108. The key impact of this IGG DPL is that it supported the Government of Morocco in shifting its growth path towards green growth in a transformational manner. A key unintended outcome was the increased allocation of FCS programs, and which was subsequently captured in a DPL2 introduced indicator.

3.5 Summary of Findings of Beneficiary Survey and/or Stakeholder Workshops

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109. Not applicable.

4. Assessment of Risk to Development Outcome Rating: Moderate.

110. Overall, Morocco is demonstrating a strong, ongoing commitment and country ownership to the inclusive green growth objectives (see section 3.1), which bodes well for the continuation of the policy reforms that were instituted through the IGG DPL series. While the reversal of reforms is not envisioned under the current circumstances and political climate, the following risk factors may lead to stalling of reforms and slower continued pace of progress:a. Institutional and Technical: ensuring the sound implementation of the national and regional

coastal zone management plans; proper enforcement of water effluent standards – if not enforced will render them obsolete, and similar development of effluent standards into other media; building the capacity of the electricity regulator and further applying the energy efficiency standards; application of the regulations to promote the capacity of renewable energy low and medium tension. This risk is rated as moderate as there is political will and support to implement the ICZM plans.

b. Stakeholder ownership: continued support to reform of fossil fuel subsidies, as well as support to the implementation enforcement measures to fisheries by the fishers’ communities. This risk is rated as negligible due to wide consultations that were undertaken prior to removal of fossil fuel subsidies reform and the reliance of FCS on increased budget allocation that was freed due to removal of subsidies; and to support to the implementation of enforcement measures as its benefits in leveling the field for all fishers become apparent as well as the participatory nature and capacity development effort to local fisheries departments in setting the enforcement plans.

c. Financial: for example, identifying financing for Qariati program and rural job diversification efforts in tourism. This risk is rated moderate due to continued efforts from SMIT and related agencies to secure financing for the Qariati program.

5. Assessment of Bank and Borrower Performance

5.1 Bank Performance(a) Bank Performance in Ensuring Quality at Entry Rating: Moderately Satisfactory

111. The Bank was instrumental in identifying, facilitating preparation of and appraising the IGG DPL 1 and 2, such that the planned development objectives were achieved.

112. Factors that contributed to the strong World Bank performance in ensuring quality at entry include: high strategic relevance and approach; analysis of structural, financial and macro-economic aspects; adaptability and fine tuning of target indicators between DPL1 and 2; choice of lending instrument; taking into consideration the lessons learned from past environmental DPLs and from earlier engagement in Morocco; building on strong dialogue and strong analytical base; inclusion of transformational policy reforms as prior actions; assessment of potential risks and identifying appropriate mitigation measures; working closely with the GoM and coordinating with the different stakeholders.

113. The Bank team assessed institutional arrangements and institutional capacity and commitment for the attainment of the agreed actions. The Bank team responded to GoM request to expedite the delivery of DPL1, and the team worked in excellent and coordinated manner to ensure quick processing of DPL1 within the tight deadlines.

114. At the same time, the design of some of the targets was over optimistic. There were shortcomings in the design particularly with the setting of target indicators, some of which proved

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overambitious and unattainable within the short timeframe of the DPL operations, either due to the complexity of the intended reform as is the case with the ICZM and renewable energy, or due to its incipient nature (for example – nature based tourism).

(b) Quality of Supervision

Rating: Moderately Satisfactory

115. The IGG DPL series was supervised by a multi-sectoral team of technical specialists from multiple global practices on environment, finance, water and sanitation, agriculture, energy, fisheries and natural resources. Several team members, including the co-TTL were based in Rabat, which further facilitated the supervision and the country dialogue. Low team member turnover between the two DPLs facilitated the continuity of the dialogue and supervision. The same task team leader, based in Rabat, oversaw preparation and supervision of both DPL1 and DPL2, and DPL2 had co-team leader supporting the supervision.

116. The World Bank team conducted approximately 10 missions between June 2012 to February 2017 (June 2012, September 2012, May 2013, September 2013, February 2014, June 2014, May 2015, October 2015, April 2016, and February 2017) with a strong emphasis on helping the client progress toward meeting the operations outcome indicators, providing timely technical assistance, and proactively identified and resolved threats to the achievement of outcomes. Missions that followed up on the progress of different indicators were also carried out within the framework of some of the supporting activities (e.g. such as part of the technical assistance to the Oum Er Rbia inclusive groundwater management contract).

(c) Justification of Rating for Overall Bank PerformanceRating: Moderately Satisfactory

117. As the World Bank’s performance for Quality at Entry is rated Moderately Satisfactory and supervision is rated Moderately Satisfactory, overall World Bank performance is rated Moderately Satisfactory.

5.2 Borrower Performance

(a) Government PerformanceRating: Moderately Satisfactory

118. The DPL series reflected well the Government’s agenda to achieve inclusive green growth, and this has facilitated Government ownership and commitment. The Government supported extensive stakeholder consultations on the planned regulatory changes (for example, groundwater framework contract, removal of fossil fuel subsidies, fisheries enforcement, etc.). Such wide consultations and communication effort built support and ensured that different stakeholder views are taken into consideration – facilitating the achievement of prior actions and target indicators.

119. The implementing agencies are the MAGG, the MEF, and the MEMDD and are indistinguishable from the “Government”. As such, the rating and the actions refer to the implementing agencies contributions as well and a separate rating is not provided for the implementing agencies. The implementing agencies were also supported by multitude of actors that were instrumental in achieving the policy reforms and targets in their respective sectors. All agencies have shown dedication and vital contributions towards the achievement of the outcomes. Nevertheless, in light of the shortcomings in policy implementation and outcome achievement, as well as remaining pending actions, the Government performance is rated Moderately Satisfactory.

(b) Implementing Agency or Agencies Performance

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(c) Justification of Rating for Overall Borrower PerformanceRating: Moderately Satisfactory

121. The rating matches the rating of the Government performance as no separate rating is provided to implementing agencies.

6. Lessons Learned

122. Government ownership at all levels is essential to ensure effective implementation of policy reforms for inclusive green growth. The concerted effort from all the different agencies that are involved in the implementation of different prior actions and achievement of targets is needed to achieve the different elements of an inclusive green growth. This is demonstrated by the DPL that included the concerted effort of several agencies including the MEF; MAGG; MAPM; MEMDD; as well as national agencies, such as the Moroccan Agency for Tourism Development; National Aquaculture Development Agency (ANDA); and Oum Er Rbia River Basin Agency (ABHOER). Government ownership in general as well as ownership and dedication of each of these agencies is essential to achieve outcomes. For example, the approval of the groundwater framework contract would not have been possible without the strong ownership and commitment of ABHOER.

123. DPL is effective instrument in supporting reform for policy issues that require multi-stakeholder support and consensus. The DPL can have convening power for influencing reform efforts for multi-sectoral issues, such as many environmental issues, and which require multi-stakeholder support and consensus. For example, the prior action of DPL 1 (the three orders no. 2942.12, 2943.13, and 2944.13) on monitoring and controlling industrial wastewater discharges in the water domain benefited from strengthened implementation capacity to bring together the industry interests, together with the environment, water, and wastewater stakeholders to the table to approve the standard. Similarly, the integrated coastal zone management law had been in draft for almost a decade. Its inclusion as a prior action of this DPL series, allowed it to benefit from the visibility and from the convening power and stronger capacity to bring the key environmental and non-environmental stakeholders to the discussion table and that ultimately lead to the approval of the law.

124. In-depth knowledge of the country and sectors is a key factor for ensuring adequate design of an operation and its successful implementation. The ongoing dialogue that the World Bank already had in Morocco, coupled with the extensive upstream and sectoral analytical work have contributed towards adequate design in terms of selection of prior actions; outcome indicators and targets that were a good balance in terms of numbers of indicators and the level of for the Bank has prior knowledge of the country and sector and strong institutional relationships; and for issues that need attention from high-level decision makers, especially in finance and planning ministries. All four conditions were met in this DPL series

125. Supporting the DPL with Advisory Services and Analytics (ASA) and investment project financing contributes to successful implementation of policy and sectoral reforms and achievement of outcomes. This lesson learned has been flagged in earlier environment DPLs and Independent Evaluation Group (IEG)’s publication of environment DPLs. This DPL series has been well supported directly and indirectly by complementing the efforts of this DPL through ASA and investments, including grants, for example, a Multi-donor Trust Fund (MDTF) grant for ASA and support dialogue; MDTF support to the ABHOER; GEF grant for integrated coastal zone management; partnership for market readiness ASA on energy efficiency in buildings; and a grant from the EU Climate Change MDTF to support technical assistance activities on agrometeorology, green taxes, groundwater governance component, and ICZM.

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126. Monitoring system may be strengthened by putting in place or benefitting from a centralized mechanism with regular reporting, as well as making these target indicators public through a website. Target indicators were monitored by their relevant agencies that followed up each on their respective indicators. Putting in place a central mechanism and making these indicators public would have further strengthened the monitoring and contributed towards motivating the achievement of the different indicators with increased transparency and bottom up pressure.

127. Balancing the breadth and depth of the reforms in a multi-sectoral DPL. The breadth of the reforms in this DPL came at the expense of the depth at which each individual reform could be addressed. The Morocco IGG DPL series touched virtually on every sector of green growth. While the GoM has enacted all the laws and decrees in timely manner, the subsequent implementation of the decrees was uneven due to the nascent or more complex nature of the reforms in some of the sectors (for example, nature based tourism in rural areas). These sectors would have benefited from more in-depth reform (e.g. additional prior actions), stronger dialogue, or from narrowing down the policy areas for reform.

7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners

(a) Borrower/Implementing agencies

128. The GoM shared a Borrower Completion Report (available in Annex 4). The Borrower completion reform notes positive experience of the IGG DPL series instituted reform program. The report notes the key factors for the success include improving governance and creating synergy among the various stakeholders, the fruitful dialogue between the Bank and the GoM, as well as the articulation of the main pillars of the reform and parallel technical assistance that strengthened reform implementation.

(b) Co-financiers


(c) Other partners and stakeholders


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Annex 1 Bank Lending and Implementation Support/Supervision Processes

(a) Task Team members P127956 - MA-Inclusive Green Growth DPL

Names Title Unit Responsibility/Specialty

Lending Daniel Camos Daurella Senior Infrastructure Economist GWA05 Xavier Chauvot De Beauchene Sr Water & Sanitation Spec. GWA07

Dorothee Chen Health, Nutrition and Population Specialist GHNDR

Khalid El Massnaoui Senior Economist GMF05Andrea Liverani Senior Social Development Spec. GURDR TTL Andrew Michael Losos Sr Transport. Spec. GTI08Achraf Rissafi Team Assistant MNCMA Manaf Touati Energy Specialist GEE05Amal Talbi Sr Water and Sanitation Spec. GWADR David Olivier Treguer Agric. Economist GFA05 Jean-Pierre Christophe Chauffour Lead Economist GMF05 Gabriella Izzi Sr Water & Sanitation Spec. GWA05Fanny Kathinka Missfeldt-Ringius Senior Energy Economist GEE06 Silvia Pariente-David Consultant GENDR Nadine T. Poupart Senior Economist GHNDR Paolo Verme Senior Economist GPV07Charlotte De Fontaubert Consultant GENDR Supervision

P149747 - MA-Inclusive Green Growth DPL2

Names Title Unit Responsibility/Specialty

Andrea Liverani Program Leader MNC01 Co-TTL Maria Sarraf Lead Environment Specialist GEN05 Co-TTL Abdoulaye Keita Senior Procurement Specialist GGO05

Andrianirina Michel Eric Ranjeva Finance Officer WFALN

Amal Talbi Sr Water & Sanitation Spec. GWA05Daniel Camos Daurella Senior Infrastructure Economist GWA05Andrew Michael Losos Sr Transport. Spec. GTI08Charlotte De Fontaubert Sr Fisheries Spec. GENGEDavid Olivier Treguer Agric. Economist GFA05Dorothee Chen Health Specialist GHN03Jean-Charles Marie De Daruvar Senior Counsel LEGAMJean-Pierre Christophe Chauffour Lead Economist GMF05Khalid El Massnaoui Senior Economist GMF05Laila Moudden Financial Management Analyst GGO23Manaf Touati Energy Specialist GEE05

Xavier Chauvot De Beauchene Sr Water & Sanitation Spec. GWA07

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(b) Staff Time and Cost

P127956 – Morocco Inclusive Green Growth DPL1

StageStaff Time and Cost (Bank Budget Only)

No. of staff weeks USD (including travel and consultant costs)

Lending FY12 13.19 64,964.01FY13 33.30 232,747.62FY14 32.81 162,255.03FY15 12.17 49,887.59FY16 4.13 20,079.85SupervisionFY14 4.13 49,733.96FY15 8.47 59,882.64FY16 2.73 19132.77TOTAL 110.93 658,683.47

P149747 – Morocco Inclusive Green Growth DPL2

StageStaff Time and Cost (Bank Budget Only)

No. of staff weeks USD (including travel and consultant costs)

Lending FY15 18.18 158,538.17FY16 29.95 179,523.89Supervision FY17 13.90 87,898.97FY18 3.28 34,105.91TOTAL 65.31 460,066.94

The Bank team carried out the following missions:DPL1 DPL2June 2012 (Pre-dentification) -September 2012 (pre-identification) -May 2013 -September 2013 February 2014 – pre-identificationJune 2014 – support June 2014 – pre-identification - May 2015- October 2015- May 2016- February 2017- September 2017

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Annex 2. Beneficiary Survey Results

(if any)

Not applicable.

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Annex 3. Stakeholder Workshop Report and Results

(if any)

Not applicable.

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Annex 4. Borrower's ICR

Royaume du Maroc

RAPPORT D’ACHEVEMENT ET DE RESULTATS

Du Premier et Deuxième Prêts de Politique de Développement

Croissance verte et solidaire

20 Février 2018

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SOMMAIRE

I- CONTEXTE DU PROGRAMME, OBJECTIFS ET MONTAGE…......................3

1.1. Contexte du programme. …………………………………..…………….……..…31.2. Objectifs de développement et indicateurs clés du projet d’appui à la compétitivité de

l’économie marocaine ……………………………………………………...…..8

II- CONCEPTION ET EXECUTION DU PROJET ……………………….….....142.1. Evaluation de la performance du projet ……………………………………..…..142.2. Principaux facteurs affectant la mise en œuvre ……………………………….....21

III- EVALUATION DES RESULTATS DU PROGRAMME ………………....…22

3.1. Pertinence des objectifs, de la conception et de la mise en œuvre .…...................223.2. Justification de la notation globale de résultats .……. ……………......................23

IV- ANALYSE CRITIQUE DE L’ACTION DE LA BANQUE MONDIALE ET DE L’EMPRUNTEUR ……........................................................................................23

4.1. Appréciation de l’action de la Banque Mondiale dans la phase préparatoire du projet …………………………………………………………………………...23

4.2. Appréciation de l’action de la Banque Mondiale au cours d’exécution du programme ……………………………………………………..........................23

V- PRINCIPALES LEÇONS A TIRER DE LA CONCEPTION ET DE MISE EN ŒUVRE DU PROJET D’APPUI …………………………………………….…23

ANNEXE : MATRICE DES MESURES DU PROJET DU PPD ET DU PPD2, LES INDICATEURS DE SUIVI ET LES REALISATIONS.......................25

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I- CONTEXTE DU PROGRAMME, OBJECTIFS ET MONTAGE

L’appui à la mise en œuvre du projet de croissance verte a pour objectif de développer un programme cohérent visant le renforcement de la mise en œuvre des politiques sectorielles en cours, orientées essentiellement vers le verdissement de la croissance.

Ce programme vise à soutenir les efforts du Gouvernement essentiellement à améliorer la gestion du capital naturel, le verdissement du capital physique et l’optimisation du capital humain dans les secteurs verts.

Le programme de réformes a été appuyé par la Banque Mondiale à travers deux prêts de Politique de Développement. Un premier Prêt (PPD1) d’un montant de 200 millions de dollars, conclu en 2013, et un deuxième Prêt (PPD2), également de 200 millions de dollars, conclu en 2015 afin de poursuivre le soutien aux réformes dans le cadre d’un appui programmatique et de consolider les efforts déjà entrepris et de les faire converger dans le but de poursuivre ces efforts pour asseoir une nouvelle politique visant à atteindre une croissance économique soutenue, respectueuse de l’environnement et plus inclusive.

Le présent rapport constitue la contribution du Maroc au rapport d’achèvement du programme d’amélioration de la gestion du capital naturel, le verdissement du capital physique et l’optimisation du capital humain dans les secteurs verts.

1- Contexte du programme

Le Maroc s’est engagé, au cours de la dernière décennie, sur la voie du développement durable et a initié plusieurs réformes dans lesquelles la croissance verte et la nouvelle économie occupent une place centrale, et ce en conciliant les objectifs de préservation des ressources naturelles et des exigences de développement des secteurs comme l’agriculture, le tourisme et l’énergie.

A cet égard, plusieurs stratégies et plans nationaux ont été mis en chantier dans le cadre de la préservation de l’environnement, la sauvegarde des écosystèmes, l’atténuation et l’adaptation aux changements climatiques.

Il s’agit notamment de la stratégie énergétique mise en place en 2009, visant à édifier un système énergétique sobre en carbone, à préserver l’environnement et à réduire notre dépendance énergétique vis-à-vis de l’extérieur, permettant un développement accéléré des énergies renouvelables, une promotion volontariste de l’utilisation rationnelle de l’énergie en répondant durablement aux besoins en énergie des générations présentes et futures.

D’autres programmes s’inscrivent également dans la politique de transition vers une économie verte pour un développement durable, tels que, le plan Maroc vert, lancé depuis 2008, qui s’est fixé pour objectif d’ériger le secteur agricole en véritable levier du développement socio-économique, le Plan Halieutis lancé en 2009 pour préserver les ressources halieutiques et l’écosystème marin, et la stratégie du tourisme vision 2020, basée sur une démarche intégrée de développement durable.

Par ailleurs, le Gouvernement a préparé une Stratégie Nationale de Développement Durable, suite à une large concertation avec l’ensemble des parties prenantes, le secteur public, les opérateurs privés et la société civile conformément aux dispositions de la Loi Cadre sur l’Environnement et le Développement Durable.

Ce positionnement de la politique économique et sociale sur la voie de la croissance verte et de la création d’emploi, constitue pour le Maroc une opportunité pour un développement socio-économique plus harmonieux et pérenne.

1.1. Situation sectorielle

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Le Maroc, à l’instar de tous les pays en développement, affronte des défis majeurs et pressants en matière de développement durable et la nécessité de préserver l’environnement et de répondre aux impératifs écologiques. Face à ces exigences et conformément à ses engagements, le Maroc met en place des programmes et des actions pour une transition vers une économie verte pour un développement durable.

Conscient des enjeux écologiques, le Maroc a adopté en 2012 le projet de loi-cadre portant Charte Nationale de l’Environnement et du Développement Durable, qui prévoit :

- des mesures d’ordre institutionnel, économique et financier dans le but d’instaurer un système de gouvernance environnementale pour la prise en considération de l’environnement et du développement durable dans les politiques et stratégies sectorielles ;

- des dispositions législatives et réglementaires portant sur la mise en place d’un système d’incitations financières et fiscales destinées à encourager le financement des projets portant sur la protection de l’environnement et l’instauration du développement durable ;

- un système de fiscalité environnementale composé des taxes écologiques et de redevances imposées aux activités caractérisées par un niveau élevé de pollution et de consommation des ressources naturelles.

En vue d’opérationnaliser sa politique environnementale, le Maroc a mis, également, en place un vaste programme sectoriel visant la préservation de l’environnement.

Pour ce qui est des ressources en eau, la stratégie adoptée visait à relever le défi de la raréfaction de l’eau et s’adapter aux effets du réchauffement climatique. Cette stratégie a été concrétisée, notamment à travers le Programme National d’Economie de l’Eau d’Irrigation, le Programme National d’Assainissement et de l’Epuration des Eaux Usées qui vise à faire face à la dégradation de la qualité de l’eau.

Le projet du Plan National de l’Eau a été préparé en parfaite coordination avec toutes les parties prenantes et qui propose d’agir au niveau des trois principaux axes suivants :

- Gestion de la demande et valorisation de l’eau : qui se traduit par des actions d’amélioration des rendements des réseau de distribution d’eau potable et l’économie d’eau en irrigation moyennant l’adoption de techniques économes en eau (à travers le Programme National d’Econome de l’eau d’irrigation) ;

- Gestion et développement de l’offre : à travers la poursuite de la construction des barrages à un rythme de 2 à trois grands barrages par an, le recours aux eaux non conventionnelles notamment la réutilisation des eaux usées épurées et le dessalement de l’eau de mer par le lancement de projets de grande échelle, à savoir la station de dessalement d’Agadir (En cours d’exécution) et le projet de station de dessalement de Casablanca (Etude en cours de lancement) ;

- Préservation des ressources en eau, du milieu naturel et adaptation aux changements climatiques : notamment à travers l’accélération de la mise en œuvre du plan national d’assainissement liquide et d’épuration en milieu rural et l’adoption d’une gestion des ressources en eaux souterraines participatives et durable dans un cadre contractuel ainsi que des actions structurelles et non structurelles pour la protection contre les inondations et la lutte contre les effets de la sécheresse.

Le Programme National de Gestion des Déchets Ménagers et assimilés (PNDM), qui vise à assurer la collecte des déchets ménagers et atteindre un taux de collecte d’au moins 90 % d’ici 2020.

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Pour atteindre les objectifs du programme PPD1 et PPD2, le Secrétariat d’Etat chargé du Développement Durable a fait de l’économie circulaire dans le domaine de la gestion des déchets un des chantiers prioritaires de la Stratégie Nationale de Développement Durable (SNDD). A cet égard, un programme ambitieux de développement des filières de valorisation des déchets a été mis en place dans l’objectif de réduire la pollution induite par ces déchets tout en offrant d’importantes opportunités en termes d’investissements et d’emplois verts.

Ce Programme trouve son ancrage dans les engagements du Maroc dans le cadre des différents Accords internationaux ainsi que dans les prescriptions nationales notamment celles relatives à la loi-cadre sur l’environnement et le développement durable qui a instauré le principe de « Responsabilité Elargie des Producteurs (REP) ».

Basé sur un modèle de gouvernance impliquant les différentes parties prenantes, institutions publics, collectivités territoriales et le secteur privé, ce programme a pour objectif :

de promouvoir une gestion intégrée et durable des déchets, d’organiser les filières de recyclage et de valorisation dans un cadre formel, d’assurer une

efficacité des ressources, de promouvoir des investissements, de créer des postes d’emploi (entre 50000 à 70 000 pour les 5 années à venir), d’atteindre un taux de 20 % du recyclage, et une valorisation supplémentaire, au moins 30% des déchets à l’horizon 2020.

A travers ce programme le SEDD a engagé la mise en place de plusieurs filières de valorisation en partenariat avec le secteur privé (les batteries usagées, les pneus usés, le papier-carton, les huiles usagées, les déchets de construction, et les déchets électriques et électroniques,).

Concernant la lutte contre le réchauffement climatique, un Plan national a été adopté. Il vise à réduire les émissions des Gaz à Effet de Serre d’environ 60 millions de tonnes, équivalent CO2/an à l’horizon 2030. Le Plan porte sur des mesures d’atténuation concernant principalement les secteurs de l’énergie, des transports, de l’industrie, des déchets et de la construction et les mesures d’adaptation qui portent principalement sur les secteurs de l’eau, de l’agriculture, de la forêt, de la pêche, , de la santé et du tourisme.

Dans le domaine agricole, le Plan Maroc Vert, lancé depuis 2008, s’est fixée pour objectif d’ériger le secteur agricole en véritable levier de développement socio-économique au Maroc. Il ambitionne aussi de garantir la sécurité alimentaire du Maroc tout en prenant en considération les impératifs de préservation des ressources naturelles, des changements climatiques et du développement durable.

Dans le cadre de la stratégie « Halieutis » pour le développement du secteur de la pêche maritime. La stratégie a été conçue de manière à répondre aux principes du développement durable, notamment à travers la lutte contre la pêche illicite non déclarée et non réglementée.

Le Maroc s’est engagé, également, dans une politique de lutte contre la pollution, à travers la promotion à grande échelle des énergies renouvelables et de l’efficacité énergétique.

Dans ce cadre, la stratégie énergétique, mise en place en 2009, vise à édifier un système énergétique sobre en carbone et répondant durablement aux besoins en énergie des générations présentes et futures, s’intègre dans ce processus de réhabilitation de l’environnement et d’intégration de développement durable dans les politiques de développement. Dans ce sens, le Maroc a adopté deux projets d’envergure pour la promotion des énergies renouvelables. Ces projets concernent l’installation à l’horizon 2020 d’énergie solaire et d’énergie éolienne chacune d’une capacité de 2000 MW, pour satisfaire 42% des besoins du pays en énergie électrique.

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Concernant le secteur du transport, le programme de réforme dans le secteur des déplacements urbain a été mis en place, notamment pour lutter contre les impacts négatifs en terme social et environnemental dans le secteur, en accordant notamment des incitations fiscales pour encourager le renouvellement du parc vétuste et la sensibilisation aux enjeux écologiques.

Pour ce qui est de la promotion d’un habitat durable, plusieurs actions et mesures ont été entreprises, à travers l’établissement d’un guide de bonnes pratiques de l’efficacité énergétique et des énergies renouvelables dans l’aménagement urbain et dans l’habitat (2010) et la promotion de l’efficacité énergétique et des énergies renouvelables dans le bâtiment.

Le Maroc s’est inscrit également dans le cadre de la préparation au marché de carbone et l'échange d'informations sur les nouveaux instruments du marché carbone pour l'atténuation des gaz à effet de serre. Le Maroc est membre du Comité du Fonds Partenariat pour le Marché Carbone (PMR).

En parallèle, des instruments financiers ont été mis en place pour contribuer et inciter au verdissement des secteurs économiques et des territoires. Il s’agit, entres autres, du Fonds National de la Protection et la Mise en Valeur de l’Environnement pour financer des programmes de mise à niveau environnementale, du Fonds de Développement Energétique (FDE) pour accompagner la stratégie énergétique dans le domaine des énergies renouvelables et de l’efficacité énergétique, du Fonds d'accompagnement de la Réforme du Transport et du Fonds Marocain du Développement Touristique (FMDT), du Fonds de développement Agricole (FDA) Pour l'encouragement des investissements Agricoles.

Par ailleurs, et à l’effet d’une meilleure prise en compte des considérations environnementales, le cadre législatif et réglementaire a été renforcé, à travers l’adoption des lois dans les domaines de l’Eau, de l’environnement, les énergies renouvelables, l’efficacité énergétique, et la gestion du littoral.

Par ailleurs, dans le cadre du renforcement du système de veille environnementale et de développement durable, un réseau d’observatoires régionaux de l’environnement et de développement durable a été mis en place pour gérer l'information environnementale au niveau des régions, suivre l'état de l'environnement et des indicateurs de développement durable régionaux, et mettre en place une assise pour un Système de Comptabilité Environnementale, en tant qu’instrument de l’économie verte.

De même, les conséquences des changements climatiques mettent en menace les actifs naturels du pays, source de production d’emploi, en plus de constituer une menace pour la population et les infrastructures.

Face à ces problématiques, la croissance verte apparaît comme une des réponses conciliée développement économique et durabilité pouvant aussi, un positionnement de la politique économique et sociale sur la voie de la croissance verte et de la création d’emploi, constitue pour le Maroc une opportunité pour un développement socio-économique plus harmonieux et pérenne.

Stratégie du Gouvernement

La nouvelle constitution de 2011, a apporté une nouvelle impulsion à ce processus en consacrant le développement durable en tant que droit pour tous les citoyens et en instaurant de nouveaux instruments d’une gouvernance démocratique, condition nécessaire pour asseoir les bases d’un développement durable du pays.

Dans l’objectif de concilier développement économique et préservation de l’environnement, le Gouvernement s’est engagé dans son programme 2012-2016 à continuer d’œuvrer en faveur d’un développement durable, basé sur une croissance économique respectueuse de l’environnement.

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Le programme de croissance verte solidaire qui a bénéficié d’un premier prêt de Politique de Développement de la Banque Mondiale en 2013, a permis d’appuyer les réformes engagées pour asseoir les bases d’une croissance verte solidaire.

Le Gouvernement est engagé à poursuivre la mise en œuvre de ces réformes, et d’assoir les conditions d’une croissance économique soutenue, respectueuse de l’environnement et plus inclusive, à travers un deuxième Prêt de Politique de Développement conclu en 2015.

1.2. Intervention des bailleurs de fonds

Dans le cadre de la mise en œuvre du programme de réforme « Croissance verte et solidaire », le Maroc a bénéficié d’un appui de la Banque Mondiale qui vient en complément et en synergie avec d’autres opérations engagées avec la Banque, notamment :

- Le Projet d’appui à la mise en œuvre du Plan Maroc Vert (PPD)- Le Projet de développement du secteur de l’énergie - Le Projet d’appui au programme national de gestion des déchets ménagers- Le projet d’énergie Solaire Noor Ouarzazate - Le projet de modernisation de l’agriculture irriguée dans l’Oum Er-Rbia - Le projet de Gestion Intégrée des Zones Côtières - Une étude sur l’adaptation aux changements climatiques dans le domaine de l’agriculture

La Banque Mondiale a, également, mobilisé d’autres fonds pour appuyer le Maroc pour la mise en œuvre de ce programme de réforme. Il s’agit notamment, du don multi-donateurs de la région Moyen Orient et de l’Afrique du Nord (MENA- MDTF) accordé à l’Agence de Bassin Hydraulique de l’Oum Er Rbia afin de contribuer au renforcement des capacités d’évaluation des impacts des changements climatiques et appuyer la mise en œuvre de contrat de gestion de nappes souterraines pour les deux aquifères du Tadla.

2. Objectifs et indicateurs clé du projet de réforme

2.1. Objectifs du projet appuyé par la Banque Mondiale

Le Maroc a bénéficié d’un appui programmatique de la Banque Mondiale sur la période 2013-2015, à travers deux prêts de Politique de développement (PPD). Un premier prêt (PPD1) d’un montant de 300 millions de dollars a été accordé par la Banque en 2013 et a permis d’appuyer les réformes engagées pour asseoir les bases d’une croissance verte solidaire.

Un deuxième prêt (PPD2) d’un montant de 300 millions de dollars a été accordé au Maroc en 2015, afin de poursuivre la mise en œuvre des réformes déjà entreprises, et d’assoir les conditions d’une croissance économique soutenue, respectueuse de l’environnement et plus inclusive.

Le programme de réforme « Croissance verte et solidaire » vise à développer un programme cohérent visant le renforcement de la mise en œuvre des politiques sectorielles en cours, orientées essentiellement vers le verdissement de la croissance.

Les objectifs de la réforme sur la croissance verte et solidaire visent essentiellement :

- l’amélioration de la gestion du capital naturel, à travers le renforcement du cadre institutionnel de la gestion du littoral, du secteur de l'Eau et de la gestion des eaux souterraines et de la lutte contre la pêche illicite.

- le verdissement du capital physique, notamment par la régulation du secteur de l’électricité, le renforcement du contrôle des rejets d'eaux usées industrielles, le renforcement du cadre légal en

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matière de développement durable et la mise en œuvre du système d’indexation des produits pétroliers.

- Le renforcement et la diversification des revenus ruraux par une optimisation du capital humain, à travers, la fourniture de services agriculture/météo, le développement des fermes aquacoles et les investissements dans l'éco-tourisme.

Les principales actions soutenues par le programme (PPD1 et PPD2)

En termes d’amélioration de la gestion du capital naturel, deux objectifs stratégiques retenus, à savoir l’amélioration de la gestion des actifs marins et côtiers et le renforcement de la gouvernance du secteur de l’eau. Les actions ont porté essentiellement sur :

- l’adoption par le Conseil du Gouvernement le 16 mai 2013 du projet de Loi n°81-12 sur la gestion intégrée du littoral.

- l’adoption par le Conseil du Gouvernement le 28 mars 2013 le projet de Loi n° 15-12 relative à la prévention et à la lutte contre la pêche illicite, non déclarée et non réglementée et modifiant et complétant le dahir portant Loi n°1-73-255 formant règlement sur la pêche maritime.

- l’approbation par le Conseil du Gouvernement le 5 novembre 2015 du projet de décret n°2.15.769 incluant les modalités d’élaboration du Plan National d’Aménagement du Littoral.

- le Plan national de contrôle des activités de la pêche maritime a été instauré par le Ministère de l’Agriculture et de la Pêche Maritime par la décision n° 001/Cab/Pm en avril 2015.

- la signature de la circulaire interministérielle le 15 novembre 2013 précisant la démarche d’établissement des contrats de nappes et rendant obligatoire la conclusion des contrats de nappes pour la gestion des eaux souterraines

- l’approbation par le Conseil du Gouvernement le 19 novembre 2015 du projet de Loi n°36-15 relative à l’eau, définissant entre autres les dispositions relatives à la gestion participative des eaux souterraines. La loi sur l’eau 36-15 a été publiée dans le Bulletin Officiel le 10 Août 2016.

Pour ce qui est du verdissement du capital physique, le Gouvernement a fixé comme objectifs de promouvoir la croissance sobre en carbone et de réduire la pollution de l’environnement. Les actions ont porté sur :

- l’adoption par le Conseil du Gouvernement le 14 novembre du décret d’application de la Loi 47-09 sur les normes d’efficacité énergétiques pour le bâtiment.

- la publication dans le Bulletin Officiel n°6182 du 29 août 2013 de l’arrêté n°3.69.13 introduisant les ajustements de prix automatiques pour le diesel, l’essence et le fuel industriel.

- la publication dans le bulletin officiel n°6199 le 28 octobre 2013 des trois arrêtés n°2942.13 , n°2943.13 et n°2944.13 portant fixation des valeurs limites générales de rejet, des grandeurs caractéristiques et des coefficients spécifiques de pollution des différents activités industrielles, des rendements des dispositifs d’épuration, nécessaires au suivi, et au contrôle des rejets des eaux usées industrielles dans le domaine public hydraulique.

- L’adoption par le Conseil des Ministres du 7 mars 2013 le projet de Loi-cadre sur l'environnement et le développement durable, indiquant en particulier la mise en place d’un cadre fiscal vert.

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- l’adoption par le Conseil du Gouvernement le 17 septembre 2015 du projet de Loi n°48-15 relative à la régulation du secteur de l’électricité portant création de l’Autorité Nationale de Régulation de l’Electricité (ANRE).

- l’adoption par le Conseil du Gouvernement le 12 octobre 2015 du décret n°2-15-772 relatif à l'accès au réseau électrique national de moyenne tension.

- l’adoption par le Conseil du Gouvernement le 27 août 2015 du projet de Loi n°58-15 modifiant et complétant la Loi n°13-09 relative aux énergies renouvelables, pour permettre l’ouverture de la basse tension pour le développement des énergies renouvelables, notamment l’utilisation à grande échelle du PV dans le résidentiel et le tertiaire raccordés en basse tension, et son adoption par la première chambre parlementaire le 27 octobre 2015.

- la publication de la Loi de Finances de 2015 (n° 100-14) dans le Bulletin Officiel n°6320 bis du 25 décembre 2014 qui a augmenté la part consacrée au financement des programmes sociaux suite aux réductions des subventions énergétiques et a réduit la TVA appliquée aux chauffes eaux solaires de 14 à 10%.

- L’adoption par le Conseil du Gouvernement du projet de Loi des Finances 2015 introduisant des ressources additionnelles au profit des investissements de dépollution et sa publication au Bulletin Officiel n°6320 bis du 24 décembre 2014, et la publication dans le Bulletin Officiel n°6406 du 22 octobre 2015 de l’arrêté n°2850.15 du 10 août 2015 fixant le cadre de la collecte et de la valorisation des batteries usagées basé sur la responsabilité élargie du producteur.

S’agissant du renforcement et la diversification des revenus ruraux par une optimisation du capital humain, les actions ont porté sur :

- la publication de l’arrêté n°3186-13 du 13 novembre 2013, modifiant et complétant l’arrêté n°368-10 en date du 26 janvier 2010, sur les subventions du matériel agricole, introduisant une subvention pour l’achat d’équipement de semis direct, dans le bulletin officiel du 19 novembre 2013.

- La signature en mars 2014 de la Convention Cadre de Partenariat n°03/2014/DMN-MAPM relative aux services agro-météorologique entre Direction de la Météorologie National (DMN) et le Ministère de l’Agriculture pour la fourniture d’informations agro-météorologiques.

- la publication au Bulletin officiel du 15 novembre 2013 de l’arrêté conjoint du Ministre de l’Economie et des Finances et du Ministre de l’Agriculture et de la Pêche Maritime n°3151-13 du 11 novembre 2013, fixant les montants et les modalités de paiement de la redevance annuelle due au titre des conventions de concession de fermes aquacoles.

- La validation de la Directive sur les études d’impact sur l’environnement dans le secteur aquaculture par le Comité National des études d’impacts sur l’environnement le 26 mars 2015 ; et la publication d’une Evaluation Environnementale Stratégique (EES) du secteur de l’aquaculture au Maroc et d’une Directive pour la réalisation d’une étude d’impact sur l’environnement des projets aquacoles sur le site internet de l’Agence Nationale pour le Développement.

- La signature de la convention interministérielle lançant le Programme de développement intégré de tourisme rural et de nature (Qariati) le 29 Septembre 2014.

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1.1. Indicateurs clés du projet Les indicateurs clés du PPD1 et du PPD2 approuvés sont les suivants :

PPD2PPD1

Pilier I : Amélioration de la gestion du capital naturel

Nombre de Schémas régionaux d’aménagement du littoral approuvés Nombre de plans régionaux de contrôle des activités de la pêche maritime approuvés par les délégations des pêches maritimes Nombre d’aquifères (nappes) où les prélèvements des eaux souterraines sont encadrés par un accord spécifique approuvé par les usagers

Pilier 2 : Verdissement du capital physique Surface en m2 de nouveaux logements construits intégrant les mesures d’EE en respectant les règlements thermiques des constructions

Capacité totale des systèmes à base d’énergie renouvelable décentralisés reliés au réseau en moyenne et en basse tensions (en MW) Enveloppe budgétaire totale de subventions au gasoil, à l’essence et au fuel industriel (en % du PIB) Allocations aux Fonds de Cohésion Sociale en proportion du budget total (hors service de la dette)

Nombre d’entreprises ayant soumis une demande de financement auprès du Mécanisme volontaire de dépollution industrielleRéduction de la pollution industrielle (en tonnes de DBO5 éliminées par an)

Nombre de produits polluants soumis à des écotaxes ou faisant l’objet de conventions de partenariat pour l’organisation de la filière de recyclage

Pilier 3 : Renforcement et la diversification des revenus ruraux par une optimisation du capital humain Part de l’enveloppe allouée aux semoirs directs dans l’enveloppe totale du FDA allouée aux semoirs (traditionnels et directs)

Pourcentage des revenus de la DMN tirés des services agro-météorologiquesNombre d’emplois créés dans le secteur de l’aquaculture (ventilés par sexe)Nombre d’emplois créés dans le secteur de l’écotourisme (ventilés par sexe)

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II- Conception et exécution du programme de réforme sur l’amélioration des compétences et de l’emploi

2.1. Evaluation de la performance du programme de réforme

Pilier 1 : Amélioration de la gestion du capital naturel

Ce pilier est focalisé sur trois objectifs stratégiques, à savoir le renforcement et l’harmonisation du cadre institutionnel de la gestion du littoral, le renforcement de la surveillance et du contrôle de l’exploitation des ressources halieutiques et le renforcement de la gouvernance du secteur de l’eau

Pour ce qui est du renforcement et l’harmonisation du cadre institutionnel de la gestion du littoral , la Loi n°81-12 relative au Littoral a été adoptée par le Parlement et publiée le 6 août 2015 au Bulletin officiel n°6384. Cette Loi vise, notamment la préservation les équilibres biologiques et écologiques, la lutte contre la pollution et la dégradation du littoral et la planification de l’aménagement, de la protection, de la mise en valeur et de la conservation du littoral à travers notamment un schéma national et des schémas régionaux du littoral.

Les dispositions de cette Loi ont permis de se doter d’un cadre de gestion intégrée des zones côtières, à limiter les pressions sur les écosystèmes côtiers et à optimiser l’utilisation des ressources côtières par les acteurs publics et privés.

Pour assurer la mise en application de cette Loi n°81-12, le Décret d’application n° 2-15-769 incluant les modalités d’élaboration du plan national et des schémas régionaux du littoral a été adopté le 15 décembre 2015 et publié dans le Bulletin Officiel n°6248-1 du 7 Janvier 2016. Ce Décret définit la gouvernance au niveau national pour une meilleure planification des zones côtières. Il permet également de définir le cadre d’une planification régionale et du Plan national de gestion du littoral.

conformément à la loi relative au Littoral, un Plan National du Littoral (PNL) est en cours de finalisation, ce plan qui va permettre de déterminer les orientations et les objectifs généraux à atteindre en matière de protection, de mise en valeur et de conservation du littoral ; d’intégrer les dimensions de protection du littoral dans les politiques sectorielles ;fixer les indicateurs appropriés à prendre en compte pour assurer la cohérence entre les programmes d’investissement et définir les moyens permettant l’harmonisation entre les projets de développement à réaliser sur le littoral ; prévoir les mesures à prendre pour prévenir, lutter et réduire la pollution du littoral et assurer la cohérence et la complémentarité entre les schémas régionaux prévus. Le PAN va donner les orientations nécessaires pour la réalisation des Schémas régionaux d’aménagement du littoral.

Pour assurer le renforcement de la surveillance et du contrôle de l’exploitation des ressources halieutiques, la Loi n°15-12 relative à la prévention et la lutte contre la pêche illicite, non déclarée et non réglementée et modifiant et complétant le dahir n°1-73-255 du 23 novembre 1973 formant règlement sur la pêche maritime a été adoptée par le Parlement et publiée au Bulletin officiel n° 6262 le 5 juin 2014.

La lutte contre la pêche illicite, non déclarée et non réglementée (INN) constitue pour le Maroc un élément clé dans la gestion de la pêche, conforme au Plan d’action international visant à prévenir, à contrecarrer et à éliminer la pêche illicite, non déclarée et non réglementée. La loi n°15-12 intègre les dispositions de la FAO, du plan d’actions international sur la Pêche INN et de l’Accord international sur les mesures du ressort de l’Etat du port.

A l’effet de soutenir plus la mise en œuvre de la règlementation des pêches y compris la Loi relative à la prévention et la lutte contre la pêche illicite, non déclarée et non réglementé, un Plan National de Contrôle des Activités de la Pêche Maritime a été instauré par le Ministère de l’Agriculture et de la Pêche Maritime par la décision n°001/Cab/PM le 1er avril 2015.Ce plan national porte des méthodologies et des procédures opérationnelles en vue d’harmoniser, de planifier, d’exécuter ledit contrôle et de permettre le suivi efficace des résultats et l’audit et

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l’évaluation réguliers du système.

Compte tenu des spécificités régionales en matière d’activité de la pêche maritime, le plan national de contrôle a été décliné en 18 plans régionaux au niveau des circonscriptions maritimes (Délégations des pêches maritimes).

Les 18 délégations des pêches maritimes relevant du Département de la pêche maritime ont élaboré et validé chacune son plan régional de contrôle des activités de la pêche maritime. Ainsi, ces plans sont entrés en vigueur à partir d’octobre 2017 et constituent un apport nouveau, très important dans l’organisation et l’exercice du contrôle des activités de la pêche maritime dans l’objectif de lutter contre la pêche INN.

Concernant le renforcement de la gouvernance du secteur de l’Eau, une nouvelle Loi n°36-15 sur l’eau a été élaborée et est approuvée par le Conseil du Gouvernement le 19 novembre 2015. Ce projet de Loi a pour objectif de corriger certaines incohérences relevées au niveau de la Loi n°10-95 sur l’eau, combler certaines lacunes et élargir le champ d’application de la Loi sur l’eau à certains aspects tels que l’assainissement liquide, la préservation des milieux aquatiques et l’utilisation des eaux non conventionnelles. Ce projet vise aussi le renforcement du cadre institutionnel et de la concertation à l’échelle des bassins hydrauliques.

S’agissant de l’amélioration de la gestion des eaux souterraines, la circulaire interministérielle précisant la démarche d’établissement des contrats de nappes a été signée. A moyen terme, deux contrats de gestion des eaux souterraines seront établis.

S’agissant de l’amélioration de la gestion des eaux souterraines, la circulaire interministérielle précisant la démarche d’établissement des contrats de nappe a été signée, contribuant ainsi à asseoir une approche participative de gestion des ressources en eau souterraines en vue d’assurer leur durabilité. Cette approche a été capitalisée et règlementée par la loi 36-15 à travers l’intégration d’une approche participative et contractuelle. Dans ce sens, une étude nationale pour l’accélération de la mise en œuvre des contrats de nappes est en cours de réalisation et des projets de contrats de nappe sont déjà prêts sur le plan technique et sont en phase de concertation avec les partenaires, notamment les contrats de nappes de Dakhla, du Haouz-Mejjate et de Fès-Meknès.

Pilier II : Verdissement du capital physique

Dans le cadre des efforts consentis en matière de verdissement du capital physique, le Gouvernement a fixé comme objectifs d’établir un cadre du marché électrique pour soutenir la croissance à basse teneur en carbone, et de réduire la pollution de l’environnement.

A l’effet de soutenir la croissance à basse teneur en carbone, plusieurs actions ont été mises en place. Il s’agit de :

- l’adoption par le Conseil du Gouvernement le 17 septembre 2015 du projet de Loi 48-15 relative à la régulation du secteur de l’électricité portant création de l’Autorité Nationale de Régulation de l’Electricité (ANRE). Les missions de l’Agence portent, particulièrement, sur l’élaboration de la grille des tarifs d’accès au réseau et la mise en place d’un gestionnaire indépendant du réseau de transport (GRT).

- l’adoption par le Conseil du Gouvernement le 12 octobre 2015 du décret n°2-15-772 relatif à l'accès au réseau électrique national de moyenne tension. Ce décret s'inscrit dans le cadre de la mise en œuvre de la Loi n°13-09 relative aux énergies renouvelables, et vise l'ouverture progressive du réseau électrique de moyenne tension produit à partir de sources d'énergies renouvelables.

Le décret prévoit la mise en place d'un cadre juridique transparent, stable et non-discriminatoire au profit des investisseurs en leur octroyant de nouvelles garanties en ce qui a trait aux projets d'énergies renouvelables en relation avec le réseau électrique de moyenne tension.

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l’adoption par le Conseil du Gouvernement le 27 août 2015 du projet de Loi 58-15 modifiant et complétant la Loi 13-09 relative aux énergies renouvelables, pour permettre l’ouverture de la basse tension pour le développement des énergies renouvelables, notamment l’utilisation à grande échelle du PV dans le résidentiel et le tertiaire raccordés en basse tension, et son adoption par la première chambre parlementaire le 27 octobre 2015.

Ce projet de Loi, qui s’inscrit dans le cadre de la mise en œuvre de la feuille de route relative au développement de l'énergie renouvelable, vise à augmenter de 12 à 30 mégawatts la capacité minimale des projets de production d'énergie électrique à partir de sources d'énergie hydraulique. En plus, le projet de Loi ouvre la possibilité de vente de l'excédent d'énergie électrique issue de sources d'énergie renouvelable à l'Office National de l'Electricité et de l'Eau potable (ONEE) pour des installations reliées au réseau électrique national de haute tension ou très haute tension et aux gestionnaires de réseau de distribution pour des installation connectés au réseau moyenne et basse tension. Toutefois, l’exploitant ne peut vendre plus que 20% en tant qu’excédant de la « production annuelle de l’énergie électrique de sources renouvelables. Enfin, ce projet de Loi consacre le principe d'ouverture du marché d'énergie électrique de basse tension produite à partir d'énergies renouvelables selon des modalités qui seront fixées par un texte réglementaire.

- la Loi de finances 2015 publiée dans le Bulletin Officiel n°6320 bis du 25 décembre 2014 a augmenté la part consacrée au financement des programmes sociaux suite aux réductions des subventions énergétiques et a réduit la TVA appliquée aux chauffe eaux solaires de 14 à 10 %.

Sur le plan de la gestion de la pollution de l’eau dans le secteur industriel, les mesures suivantes ont été également prises :

- la publication en octobre 2013, de trois arrêtés portant fixation des valeurs limites générales de rejet, des rendements des dispositifs d’épuration, des grandeurs caractéristiques et des coefficients spécifiques de pollution, nécessaires au suivi, au contrôle et à l’application du principe pollueur payeur aux déversements des eaux usées industrielles dans le domaine public hydraulique.

- L’adoption par le conseil du Gouvernement du projet de Loi des Finances 2015 introduisant des ressources additionnelles au profit des investissements de dépollution et sa publication au Bulletin Officiel n°6320 bis du 24 décembre 2014, et la publication dans le Bulletin Officiel n°6406 du 22 octobre 2015 de l’arrêté n°2850.15 du 10 août 2015 fixant le cadre de la collecte et de la valorisation des batteries usagées basé sur la responsabilité élargie du producteur.

- La publication de la loi portant charte nationale de l’Environnement et de Développement Durable le 20 Mars 2014 et conformément à son article 14, une Stratégie Nationale de Développement Durable a été élaborée et adoptée par le Conseil des Ministres le 25 juin 2017.

Pilier III : Renforcement et la diversification des revenus ruraux à travers l’optimisation du capital humain

Le dernier axe retenu dans le cadre de ce programme d’appui à la mise en place d’une politique en faveur de la croissance verte solidaire porte sur l’optimisation du capital humain dans les secteurs verts. Dans ce cadre, trois objectifs stratégiques ont été retenus par le Gouvernement, portant sur la fourniture de services agriculture/météo, les fermes aquacoles et les investissements dans l'éco-tourisme.

Afin d’encourager l’innovation pour une agriculture résiliente et productive, il a été procédé :

- Pour la subvention au semis direct, à la publication de l’arrêté modifiant et complétant l’arrêté n°368-10 en date du 26 janvier 2010, sur les subventions pour le matériel agricole, l’introduction d’une subvention pour l’achat d’équipement du semis direct.

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- A la signature en septembre 2014 par le Ministre de l’Agriculture, et le Ministre de l’Energie, des Mines et de l’Environnement de la Convention Cadre de Partenariat relative aux services agro-météorologique entre le Département de la Météorologie National (DMN) et le Ministère de l’Agriculture pour la fourniture d’informations agro-météorologiques.

A l’effet de favoriser les investissements pour diversifier les revenus ruraux et créer de meilleurs emplois, il a été procédé :

- A la publication au Bulletin officiel n°6218 du 2 janvier 2014 de l’arrêté conjoint du Ministre de l’Economie et des Finances et du Ministre de l’Agriculture et de la Pêche Maritime n°3151-13 du 11 novembre 2013 fixant les montants et les modalités de paiement de la redevance annuelle due au titre des conventions de concession de fermes aquacoles.

- Au renforcement de l’efficacité du cadre du contrôle et de suivi des impacts des investissements aquacoles par l’élaboration et la publication d’une Evaluation Environnementale Stratégique (EES) du secteur de l’aquaculture au Maroc et d’une Directive pour la réalisation d’une étude d’impact sur l’environnement des projets aquacoles ;

- à la signature en Septembre 2014 de la convention interministérielle sur le lancement du Programme de développement intégré de tourisme rurale et de nature (Qariati).

2.2. Principaux facteurs affectant la mise en œuvre

La mise en œuvre du programme a connu une réussite significative. Ce succès peut être expliqué par :

- La capacité institutionnelle des institutions impliquées dans la mise en œuvre des réformes engagées ; - Le cadre institutionnel approprié ;- L’assistance technique de la Banque Mondiale appuyant les actions parallèles au programme de

réforme ;- La collaboration entre la Banque Mondiale et les autres bailleurs de fonds pour soutenir la préparation

de cette opération ;- Le bon niveau de coordination et l’implication de toutes les parties prenantes et l’adoption de

l’approche participative ;- L’opération a été complétée par d’autres opérations de la Banque Mondiale (Projet PMR, GIZC,

Efficacité énergétique, etc.).

Malgré les résultats concrets enregistrés, la mise en œuvre du projet a connu des défis dans la réalisation de quelques indicateurs de résultats.

III- Evaluation des résultats du projet

3.1. Pertinence des objectifs, de la conception et de la mise en œuvre

Les objectifs et le concept du programme de réforme « croissance verte et solidaire » sont jugés pertinents par rapport aux priorités du Gouvernement et au contexte actuel vers une transition économique verte pour un Développement Durable et est confirmé comme priorité du pays.

Le Prêt de Politique de Développement (PPD1 et PPD2) a largement réussi à atteindre son objectif et les mesures prises par le Gouvernement dans le cadre de l’Opération ont permis, de réaliser les résultats escomptés.

La haute pertinence globale des objectifs confirme que les objectifs du PPD1 et PPD2 étaient clairs, pertinents et importants et que la conception du programme reflétait un bon diagnostic des priorités de développement durable au Maroc.

IV-Analyse critique de l’action de la Banque Mondiale et de l’emprunteur

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4.1. Appréciation de l’action de la Banque Mondiale dans la phase préparatoire du projet

Le lancement de la préparation du programme de réforme « croissance verte te solidaire » a été élaboré suite à plusieurs concertations engagées et un dialogue fructueux entre les départements impliqués et la Banque.

De ce fait les objectifs et les axes du programme ont déjà été arrêtés au moment du lancement du programme ce qui a facilité la préparation et l’exécution du projet.

4.2. Appréciation de l’action de la Banque Mondiale au cours d’exécution du programme

L’exécution a été marquée par le suivi régulier de la part de la Banque, à travers les missions de suivi et de consultation, ce qui a aidé à surmonter les contraintes au niveau de la concrétisation de certaines actions du projet d’appui de la Banque Mondiale

De la part des autorités marocaines, malgré la complexité des réformes engagées dans le cadre de cette opération, le projet a connu une exécution satisfaisante grâce à la coordination entre les départements ministériels concernés par ce programme et à la volonté des décideurs de concrétiser ces réformes.

V- Principales leçons à tirer de la conception et mise en œuvre du programme d’appui au développement des compétences et d’emploi

L’expérience du PPD1 et du PPD2 du programme de réforme « Croissance Verte et Solidaire » a été très positive. Les facteurs de ce succès incluent l’amélioration de la gouvernance et la création de synergie entre les différents intervenants, le dialogue fructueux ente la Banque et les autorités marocaines, l’articulation des principaux piliers de la réforme e l’assistance technique dispensée en parallèle à l’exécution du projet.

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ANNEXE

Matrice des mesures du projet du PPD1 et PPD2, les indicateurs de suivi et les réalisations

AXES Actions PPD I Actions PPD II Indicateurs de résultats Etat d’avancement et réalisations

PILIER I : AMELIORER LA GESTION DU CAPITAL NATUREL 1.1 Gestion des actifs côtiers et marins

1.1.1. Le Conseil du Gouvernement a approuvé le projet de loi relatif à la gestion intégrée des zones côtières le 16 mai 2013

1.1.1. Le Conseil du Gouvernement a adopté le Décret n°2.15.769 incluant entre autres les modalités d’élaboration du Plan National d’Aménagement du Littoral le 5 novembre 2015

Nombre de Schémas régionaux d’aménagement du littoral approuvés

Valeur de référence (12/2013) : 0 Valeur cible 2017 : 2Valeur effectivement atteint : 2 en 2018

Schéma régional de l’Oriental et 1 Plan de Gestion Intégré du Littoral pour la région Rabat-Salé-Kénitra sont en cours de réalisation

1.1.2. Le Conseil du Gouvernement a approuvé le projet de Loi relatif à la lutte contre la pêche illicite le 28 mars 2013

1.1.2. Le Ministre de l’Agriculture et de la Pêche Maritime a émis la Décision n°001/Cab/PM instaurant le Plan National de Contrôle des activités de la pêche maritime le 1er avril 2015

Nombre de plans régionaux de contrôle des activités de la pêche maritime approuvés par les délégations des pêches maritimes

Valeur de référence (12/2013) : 0 Valeur cible 2017: 18

Valeur effectivement atteinte : 18

1.2 Renforcement de la gouvernance du secteur de l’eau

1.2.1. Les Ministres de l’Intérieur, de l’Agriculture et de l’Eau ont signé la circulaire interministérielle rendant obligatoire la conclusion des contrats de nappe pour la gestion des eaux souterraines le 15 novembre 2013

1.2. Le Conseil du Gouvernement a approuvé le projet de Loi n°36-15 relative à l’eau, définissant entre autres les dispositions relatives à la gestion participative des eaux souterraines le 19 novembre 2015.

Nombre d’aquifères (nappes) où les prélèvements des eaux souterraines sont encadrés par un accord spécifique approuvé par les usagersValeur de référence (12/2013) : 1 Valeur cible 2017 : 3

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PILIER II : VERDIR LE CAPITAL PHYSIQUE 2.1. Croissance sobre en carbone

2.1.1. Le Conseil du Gouvernement a approuvé le 14 novembre 2013 le Décret sur l’efficacité énergétique dans le secteur du bâtiment

2.1.1. Le Conseil du Gouvernement a approuvé le projet de Loi n° 48-15 portant création de l’Autorité nationale de régulation de l’électricité le 17 septembre 2015.

Surface en m2 de nouveaux logements construits intégrant les mesures d’EE en respectant les règlements thermiques des constructionsValeur de référence (12/2013) : 0 Valeur cible 2017: 400 000

2.1.2. L’Arrêté n° 3.69.13 du 19 août 2013 introduisant les ajustements de prix automatiques pour le diesel, l’essence et le fuel a été publié au Bulletin officiel

2.1.2. Le Conseil du Gouvernement a adopté le décret n° 2-15-772 relatif à l’accès au réseau électrique national de moyenne tension le 12 octobre 2015.

Capacité totale des systèmes à base d’énergie renouvelable décentralisés reliés au réseau en moyenne et en basse tensions (en MW) Valeur de référence (12/2013) : 0 Valeur cible 2017 : 10

2.1.3. Le Conseil du Gouvernement a approuvé le projet de Loi n°58-15 modifiant et complétant la Loi n° 13-09 encadrant la fourniture de solutions d'énergie renouvelable pour les clients basse tension le 27 août 2015.

Enveloppe budgétaire totale de subventions au gasoil, à l’essence et au fuel industriel (en % du PIB)

Valeur de référence (12/2013) : 3% Valeur cible 2017 : 0%

2.1.4. La Loi de finances de 2015 (Loi n° 100-14), qui a augmenté le financement des programmes sociaux suite aux réductions des subventions énergétiques, a été publiée au Bulletin officiel n° 6320 bis le 25 décembre 2014.

Allocations aux Fonds de Cohésion Sociale en proportion du budget total (hors service de la dette)

Valeur de référence (12/2013) : 0,63 % Valeur cible 2017 : 1,34 %

2.2 Gestion de la Pollution

2.2.1. Les trois arrêtés n° 2942.13, n° 2943.13 et n° 2944.13 en date du

2.2. La loi de finances de 2015 introduisant des ressources Nombre d’entreprises ayant

Les demandes de financement ont été

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7 octobre 2013 sur le suivi et le contrôle des rejets d’eaux usées industrielles dans le domaine hydraulique précisant i) les valeurs limites générales ; ii) les valeurs caractéristiques et les coefficients spécifiques ; et iii) l’efficacité de traitement minimum des usines de traitement des eaux usées industrielles, ont été publiés au Bulletin officiel n° 6199 en date du 28 octobre 2013.

supplémentaires au profit des investissements de dépollution a été publiée au Bulletin officiel n°6320 bis du 25 décembre 2014 ; et l’Arrêté n° 2850.15 du 10 août 2015 fixant le cadre de la collecte et de la valorisation des batteries usagées basé sur la responsabilité élargie du producteur a été publié au Bulletin Officiel n° 6406, du 22 octobre 2015.

soumis une demande de financement auprès du Mécanisme volontaire de dépollution industrielleValeur de référence (12/2013) : 0Valeur cible 2017: 3Valeur effectivement atteint : 5

reçues au SEDD :COPAG : 16/05/2017SILDA : 16/05/2017EL HARDOUFI : 16/05/2017ZI AL OMRANE : 19/04/2017MFP : 02/03/2017

2.2.2 Le Conseil des Ministres a approuvé le 7 mars 2013 le projet de Loi-cadre sur l’environnement et le développement durable prévoyant, en particulier, la mise en place d’un cadre complet de fiscalité vert

Réduction de la pollution industrielle (en tonnes de DBO5 éliminées par an)

Valeur de référence (12/2013) : 20 Valeur cible 2017 : 200Valeur effectivement atteint : 469

Valeur calculée par l’expert de l’Union Européenne sur la base des analyses effectuées par la société SUCRAFOR.

Nombre de produits polluants soumis à des écotaxes ou faisant l’objet de conventions de partenariat pour l’organisation de la filière de recyclage. ; Valeur de référence (12/2013) : 2 Valeur cible 2017 : 4Valeur effectivement atteint : 7

- Une écotaxe sur les produits plastiques

- 6 conventions de partenariat pour la mise en place des filières de valorisation des déchets en cour de mise en œuvre.

PILIER III : RENFORCER ET DIVERSIFIER L’ECONOMIE RURALE EN OPTIMISANT LE CAPITAL HUMAIN

3.1. Technologies vertes dans le secteur

3.1 L’Arrêté n° 3186-13 en date du 13 novembre 2013 modifiant et complétant l’Arrêté n° 368-10 en date du 26 janvier 2010, sur les

3.1. Le Ministère de l’Agriculture et de la pêche maritime et la Direction de la météorologie nationale du Ministère de l’Énergie, des mines, de l’eau et de l’environnement ont signé le 21 mars

Part de l’enveloppe allouée aux semoirs directs dans l’enveloppe totale du FDA allouée aux semoirs (traditionnels et directs) -

54


agricole subventions au matériel agricole, introduisant une subvention pour l’achat d’équipement de semis direct a été transmis par le Ministre de l’Économie et des finances au Secrétariat général du Gouvernement et publié au Bulletin officiel en date du 19 novembre 2013.

2014 la Convention cadre de partenariat n° 03/2014/DMN-MAPM pour la fourniture d’informations agro météorologiques à destination du secteur agricole

Valeur de référence (12/2013) : 0 Valeur cible : 6 %

Pourcentage des revenus de la DMN tirés des services agro météorologiquesValeur de référence (12/2013) : 1,5 % Valeur cible 2017 : 9

3.2 Diversification des revenus ruraux

3.2.1 L’Arrêté n° 3151-13 du 11 novembre 2013 établissant les critères techniques et économiques de fixation du montant du loyer que doivent payer les fermes aquacoles a été transmis par le Ministre de l’Économie et des finances au Secrétariat général du Gouvernement pour publication au Bulletin Officiel le 15 novembre 2013.

3.2.1 Le Comité national des études d’impacts sur l’environnement a validé la Directive sur les études d’impacts sur l’environnement dans le secteur de l’aquaculture le 26 mars 2015 ; et l’Agence nationale pour le développement de l’aquaculture a publié sur son site Internet son évaluation stratégique environnementale du secteur de l’aquaculture

Nombre d’emplois créés dans le secteur de l’aquaculture (ventilés par sexe)Valeur de référence (12/2013) : 115 Valeur cible : 500

3.2.2 La Convention interministérielle lançant le Programme national d’écotourisme rural « Qariati » a été signée le 29 septembre 2014 par le Ministre de l’Intérieur, le Ministre de l’Urbanisme et de l’aménagement du territoire, le Ministre de l’Agriculture et de la pêche maritime, le Ministre du Tourisme, la Ministre de la Jeunesse et des sports, et la Ministre déléguée auprès du Ministre de l’Énergie, des mines, de l’eau et de l’environnement, chargée de l’Environnement

Nombre d’emplois créés dans le secteur de l’écotourisme (ventilés par sexe)Valeur de référence (12/2013) : 0 Valeur cible 2017 : 250 (dont 80 femmes)

55

Annex 5. Comments of Cofinanciers and Other Partners/Stakeholders

Not Applicable

56

Annex 6. List of Supporting Documents

General documents available in the project file:

World Bank (2013) First Inclusive Green Growth Development Policy Loan Program Document

World Bank (2015) Second Inclusive Green Growth Development Policy Loan Program Document

Loan Agreements DPL1 and 2 World Bank mission aide-mémoires ISR reports Prior action documentation DPL1 and 2

Supporting documents by PDO:

Policy area 1.1:

GoM. Special conditions. Open invitation to tender on price offers N ° 78 / DOEP / 2016. Study for the Elaboration of Regional Schemes of the Coast For the account of the Direction of the Observation, the Studies and the Planning, in two lots, namely: Lot 1: Region of Rabat Salé Kenitra; Lot 2: Tangier Region Tetouan Al Hoceima. 2016 financial year.

GoM. Dahir n ° 1-15-87 of 29 ramadan 1436 (July 16, 2015) promulgating the law n ° 81-12 on coastal zone management.

GoM. Decree page 5 BO_6428_Fr GoM. Framing Note. State Secretariat to the Minister of Energy, Mines and Sustainable

Development, in charge of sustainable development, Directorate of Observation, Studies and Planning (DOEP). Study for the drafting of the National Coastal Zone Management Plan

GoM. Note. Operationalization of the legal and regulatory texts relating to the National Coastal Zone Management Plan and Regional Coastal Zone Management Plans.

Brief summary of the main activities carried out for the development and implementation of the National Plan for the Control of Maritime Fishing Activities (MCP).

Policy area 1.2: Project documents (including ICR) and aide memoires for P154280 - Strengthen capacity for

an inclusive design of groundwater management contract for green growth. Framework contract for integrated and participative management of the Tadla aquifer system

2018-2030. Minutes of the Meeting of the Regional Workshop for Ratification of the groundwater

framework contract covering the Tadla system multi-layered aquifers Tadla, held at the Oum Er Rbia River Basin Agency on Wednesday 27 September 2017 (in Arabic)

Policy Area 2.1: Moroccan-German Energy Partnership PAREMA. Renewable energy and energy efficiency

in Morocco Context and market access Information for small and medium-sized enterprises World Bank / PMR. DRAFT. Strategies for Implementing the Nationally Determined

Contribution of Morocco: How to Align the Investor Perspective with the Energy Efficiency Objectives in the Building Sector. Prepared under P159288 - Morocco Support in the NDC

GoM. Presentation note. Budget law for fiscal year 2017. GoM. Presentation note. Budget law for fiscal year 2017. Report on compensation.

57

World Bank. An Evaluation of the 2014 Subsidy Reforms in Morocco and a Simulation of Further Reforms prepared by Paolo Verme and Khalid El-Massnaoui. Policy Research Working Paper 7224.

World Bank. 2014. Reforming Subsidies in Morocco. Government of Morocco Budget Laws for years 2015, 2016, 2017, and draft 2018

Policy area 2.2:

Specific Partnership Agreement for carrying out the collection and disposal of plastic bags Budgeting National Program for the Valorization of Waste (Programme National de Valorisation des

Déchets - PNVD).

Policy area 3.1:

Aid to direct seeders. 2017. Provided through Ms. Imane Louati, Head of Multilateral Cooperation Branch, Cooperation Division, Strategy and Statistics Directorate, Ministry of Agriculture and Maritime Fisheries.

Policy area 3.2: Government of Morocco. Directive for conducting an environmental impact study of

aquaculture projects (in French). Government of Morocco. Strategic Environmental Assessment (SEA) of Morocco's

aquaculture strategy (in French). ANDA. Guide to investing in aquaculture in Morocco (in French) Project documents (draft PAD, aide memoires, and SAP notes) for Program for Results for

Tourism and Local Economic Development Program for Results (P154715). SMIT. 2017. Note on the Program for Integrated Development of Rural and Nature Tourism

(in French).

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Annex 7. Additional Tables and Figures

Table A1. Comparison between IGG DPL2 Prior Actions and Indicative Triggers

IGG DPL2 Indicative Triggers at DPL1 approval

IGG DPL2 Prior Actions Rationale for change

1.1.1 The Council of Government adopts the National Coastal Zone Management Plan (Plan National d’Aménagement du Littoral)

The Council of Government (Conseil du Gouvernement) has adopted Decree No. 2.15.769 regulating, inter alia, the formulation of the National Coastal Zone Management Plan (Plan National d’Aménagement du Littoral) on November 5, 2015.

The Decree is the underpinning regulatory text that allows for the formulation of the National Coastal Zone Management Plan. The reformulation reflected the Government’s wish to define the institutional arrangements for the formulation of the Plan given its highly inter-sectoral nature, ahead of the actual formulation of the plan itself.

1.1.2 The Minister of Agriculture and Fisheries adopts the National Monitoring Plan for Marine Fisheries.

The Minister of Agriculture and Marine Fisheries has issued Decision No. 001/Cab/PM containing the National Monitoring Plan for Marine Fisheries (Plan National de Contrôle des Activités de la Pêche Maritime) on April 1, 2015.

No material change

1.2 The Council of Government approves the draft of the revised Water Law

The Council of Government has approved the draft Law No. 36-15 on water, setting provisions for, inter alia, participatory groundwater management on November 19, 2015.

The reformulation clarified the specific objectives of the reform supported by the DPL series in line with DPL1 prior action and expected results.

2.1.1 The Council of Government approves the draft Law creating the National Agency for Energy Regulation.

The Council of Government has approved draft Law No. 48-15 creating the National Agency for Electricity Regulation (Autorité Nationale de Régulation de l’Electricité) on September 17, 2015.

The objective of this prior action was to improve the regulatory framework to increase competition and private sector participation in the production of electricity from renewable energy. Hence the agency’s name was revised from National Agency for Energy Regulation to National Agency for Electricity Regulation by the Government of Morocco.

2.1.2 The Council of Government adopts the decree allowing for renewable energy generation connected to the medium voltage grid

The Council of Government has adopted Decree No. 2-15-772 regarding access to the national medium voltage electricity network on October 12, 2015.

No material change

2.1.3 The Council of Government approves the amendment to Law 13-09 to provide renewable energy solutions for low voltage customers

The Council of Government has approved draft Law No. 58-15 amending and completing Law No. 13-09, to provide renewable energy solutions for low voltage customers on August 27, 2015.

No material change

2.1.4 The Government strengthens safety nets to temper the impact of possible energy subsidy cuts.

The 2015 Budget Law (Law No. 100-14), which increased the funding to social programs following energy subsidy cuts, has been published in the National Gazette No. 6320 bis, dated December 25, 2014.

T he Government aims to recycle part of the savings derived from subsidy cuts envelope to increase funding of social programs. The reformulation clarified the previous wording in line with the objective of the reform supported as per DPL1 Prior Action and expected results.

2.2 The Council of Government approves the draft 2015 finance law introducing green taxes

The 2015 Budget Law, which introduced additional resources to depollution investments, has been published in the National Gazette No.

The reformulation reflects the Government’s intention to maintain the key existing mechanism supporting depollution investments, to increase its resource

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IGG DPL2 Indicative Triggers at DPL1 approval

IGG DPL2 Prior Actions Rationale for change

and financial incentives to depollution investments

6320 bis, dated December 25, 2014; and Order (Arrêté) No. 2850.15 dated August 10, 2015, supporting the recycling framework for used batteries based on extended producer responsibility, has been published in the National Gazette No. 6406, dated October 22, 2015.

envelope, and to change the approach to environmental taxes towards the development and application of Extended Producer Responsibility.

3.1 The Minister of Agriculture and the Minister of Energy, Mining, Water and Environment sign the Performance Agreement between the DMN and MAPM for the provision of agrometeorological information to the agricultural sector

The Ministry of Agriculture and Marine Fisheries and the Department of National Meteorology at the Ministry of Energy, Mines, Water and Environment, have signed the framework partnership agreement No. 03/2014/DMN-MAPM for the provision of agro-meteorological information to the agricultural sector on March 21, 2014.

No material change.

3.2.1 The National Committee on Impact Studies validates the Directive specific to the aquaculture sector and ANDA publishes the Strategic Environmental Assessment for the Aquaculture sector.

The National Committee on Environmental Impact Studies has validated the Directive on environmental impact assessments in the aquaculture sector on March 26, 2015; and the National Aquaculture Development Agency (Agence Nationale pour le Développement de l’Aquaculture) has published on its website its strategic environmental assessment for the aquaculture sector on October 1, 2015.

No material change

3.2.2 At least two Local Development Entities tasked with the implementation of the national rural and eco-tourism program (Qariati) are established.

The inter-ministerial agreement launching the national rural and eco-tourism program (Qariati) has been signed by the Minister of Interior, the Minister of Urbanism and Territorial Planning, the Minister of Agriculture and Marine Fisheries, the Minister of Tourism, the Minister of Handicrafts and Social and Inclusive Economy, the Minister of Youth and Sports, and the Minister in charge of Environment, under the Minister of Energy, Mines, Water and Environment, on September 29, 2014.

T he reformulation proposed to retain the signature of the inter-ministerial agreement that set out GoM’s ecotourism development program. This text was signed by seven Ministers and lays out the details of the program’s implementation – including the financial commitments from each ministry involved.

Source: IGG DPL2 Project Document.

Table A2. Analytical Underpinnings for Preparation of IGG DPL Series

Prior actions

Analytical Underpinnings

Pillar 1: Improving the Management of Natural Capital 1.1.1 The coastal zone management reforms supported by the operation build on the report of the MedWetCoast project, the

Short and Medium-term Priority Environmental Action Programme (SMAP III) of the European Union, the Adaptation aux Changements Climatiques au Maroc (ACCMA) project financed by IDRC, as well as the preparatory work for the GEF

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Prior actions


funded ICZM project currently under implementation. MedWetCoast produced research specific to the management of wetlands in the Mediterranean basin, which in Morocco includes some Ramsar Convention sites and other sites of particular interest in the northeast of the country. ACCMA, centered on the Berkane and Nador provinces of the Oriental region, was an exercise in capacity building to reinforce decision making for communities in the coastal zone under conditions of climate change. SMAP III was part of a program of technical assistance and capacity building to strengthen environmental strategy and governance to favor integrated coastal zone management approaches. The reforms directly build on the Government’s 2005 report A strategy for reforming coastal management in Morocco. The reform benefited from Bank’s TA on laying out of the governance framework for ICZM planning.

1.1.2 Measures under the fisheries component directly stem from the implementation of FAO’s International Plan of Action to Prevent, Deter, and Eliminate Illegal, Unreported and Unregulated Fishing15 and its related analytical bases. FAO’s plan was adopted in 2001 as a voluntary instrument and is universally recognized as containing all the measures that states can take to address the growing threat of pirate fishing, including the actions supported by the proposed DPL series aimed at adopting and implementing a broad IUU legislation. The need for a strong emphasis on enforcement was also confirmed in two studies completed in 2011: “Adaptation challenges in the Fisheries sector” prepared by the World Bank, in collaboration with the Department of Maritime Fisheries (Département de la Pêche Maritime), and the 2012 MED Report Toward Green Growth in Mediterranean Countries (WB/CMI).16 The diagnostics behind Morocco’s national fisheries strategy – Halieutis – placed the sustainability of the sector as a key policy pillar, and within this, the fight to illegal fishing as an immediate objective.55

1.2.1 The water sector governance axis builds on the seminal Water Sector Policy note (World Bank, 2004), and the water DPL (World Bank 2007). The Government's proposals to revise the provisions of the Water Law on the governance of the sector are consistent with the recommendations of the Water Sector Policy Note on institutional aspects, including: improving interministerial coordination for water sector governance and priorities; creation of river basins councils, improving the governance of the River basin agencies (Agences de Bassins Hydrauliques). Additionally, the assessment study of Water Law 10-95 implementation (MEMEE, 2011), which encompasses four reports: (i) Diagnosis of the Water Law implementation; (ii) Analysis of the institutional context; (iii) Evaluation of the achievement of the Water Law objectives; and (iv) Evaluation of the impacts of the implementation of the Water Law; defined the main boundaries and areas for revision. Supported reforms build on work carried out through a) the GW-MATE technical assistance for sustainable groundwater management strategies (World Bank): Between 2006 and 2008, the Bank, through the GW-MATE, supported the Water Department in developing, with the water users, Action Plans for a sustainable groundwater management in three basins, which were used to design the aquifers contracts for the management of groundwater (contrats de nappes); b) advisory services for the establishment of the framework convention to preserve water resources in the Souss-Massa river basin (GIZ, 2012). This study analyses strengths and weaknesses of the only groundwater contract that has been piloted in Morocco and suggested areas for improvement; c) the elaboration of a standard groundwater management contract (MEMEE, 2012). This study contains an international benchmarking of contracting arrangements for the management of groundwater resources, provides lessons in light of the Moroccan experience and proposes a standard groundwater management contract. The Bank is providing TA support to the groundwater management agenda through a recently approved MENA MDTF Grant, as well as WET and WSS resources

Pillar 2 : Greening physical capital 2.1.1 The introduction of an energy regulation scheme builds on two studies led by Eurogroup Consulting.

Definition of the National Power Sector Regulation Scheme (Eurogroup Consulting for MEMEE, 2011). The first report (MEMEE/Eurogroup Consulting, 2011) developed the necessity to open the power market to renewables, to allow an organizational breakdown for generation, transmission and distribution costs in order to ensure an objective, transparent and nondiscriminatory grid access, and finally to create an independent authority for energy regulation. Implementation of the National Authority for Electricity Regulation (Eurogroup Consulting for MEMEE, 2015). The second report (MEMEE/Eurogroup Consulting, 2015) focuses on the legal and regulatory framework adaptation, the design and operation of the energy regulation authority, with clear performance indicators and implementation monitoring scheme, as well as the business model for the upcoming TSO (Transmission System Operator), including an international benchmark (Portugal, Spain, France, Italy, Turkey and Algeria), as well an economic modelling of the

TSO with related financial equilibrium mechanisms. International Energy Agency’s Morocco in-depth Review (IEA, 2014): Morocco 2014 Energy Policy Review .17 The IEA undertook a deep dive of the Moroccan power sector in 2014, and recommends accelerating the establishment of an energy regulator to supervise an even more open power market.

2.1.2 Opening of the Middle Voltage Segment for Renewable Energies in Morocco (Tractebel Engineering – GDF Suez Group for MEMEE, 2014). The renewable energy opening for middle voltage was assessed by the Ministry of Energy through a comprehensive study financed by the European Bank for Reconstruction and Development (EBRD) and undertaken by Tractebel Engineering (GDF Suez Group). This study (i) undertakes a diagnostic of the middle voltage sector, (ii) analyses the conditions and modalities for opening the middle voltage grid for renewable energies and leverage international experience, (iii) addresses different grid opening options on a technical, legal and economic basis for all relevant stakeholders, (iv) provides the key principles for a progressive and harmonious opening of the MV to be included in the

15 http://www.fao.org/fishery/ipoa-iuu/en 16 http://www.cmimarseille.org/sites/default/files/newsite/library/files/en//2012MedReport_Overview_EN.pdf 55 http://www.maroc.ma/en/content/halieutis

17 http://www.iea.org/Textbase/npsum/morocco2014sum.pdf

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Prior actions


Decree, and finally (v) provides a concrete roadmap for 2020. International Energy Agency’s Morocco in-depth Review (IEA, 2014): Morocco 2014 Energy Policy Review. The IEA undertook a deep dive of the Moroccan power sector in 2014, and recommends accelerating work in the medium and low voltage area currently under way in Morocco – including access to the grid.

2.1.3 The renewable energy opening for low voltage (rooftop photovoltaic) was assessed by the Ministry of Energy (MEMEE/GIZ, 2014)18 through a study financed by GIZ and implemented by international PV experts and economists. The study strongly recommends the Moroccan Government to open the grid to decentralized rooftop PV to tap into the country’s solar potential and to reduce energy dependence. Among others, the study estimates the technical and economic potential at the 2030 horizon, and assesses different scenarios for the development of PV in Morocco, and their respective results in terms of power generation, primary energy savings and avoided GHG emissions. On a final note, the study provides recommendations regarding the legal and regulatory framework to be adopted for this reform, which can inform a future decree. International Energy Agency’s Morocco in-depth Review (IEA, 2014): Morocco 2014 Energy Policy Review. The IEA undertook a deep dive of the Moroccan power sector in 2014, and recommends accelerating work in the medium and low voltage area currently under way in Morocco – including access to the grid.

2.1.4 The following studies informed actions on reforming petroleum products subsidies: - Recommendations for a new subsidy system for petroleum products in Morocco (Beicip Franlab for World Bank,

September 2009). The report provides recommendations to develop a new compensation system, while protecting the most fragile Moroccan classes. Several scenarios are designed, with a particular attention to liquified petroleum gas and diesel. Subsidization of petroleum products in Morocco (Beicip Franlab for World Bank, June 2012). The report takes stock of the current situation and the measures already implemented to reduce the burden on the Moroccan public finances, including the history of the adjustments undertaken or recognized in the compensation fund computation.

- The Bank also provided advice based on global best practice around key analytical products such as Implementing Energy Subsidy Reforms: an Overview of Key Issues (WB Working Paper, 2012).19 Based on a review of 20 developing economies that have undertaken subsidies reforms, this report provides evidence that implementation of compensatory social policies and an effective communication strategy, before the changes were introduced, made a difference in securing the successful implementation of reforms.

- Additionally, a PREM-HD-SD team helped the Government assess distributional impacts through the development of models to perform incidence analysis of the impacts of different reform scenarios proposed by the Government on macro variables (inflation, budget, poverty, etc.). Under the same activity, the Bank provided support to the development of mitigation measures, including by sharing international best practices on cash transfers (conditional and unconditional); identifying and designing key features of the cash transfer program, including program objective, conditionality, institutional arrangements, budget, benefits, payment mechanism, information campaign, Monitoring and Information System (MIS), and M&E system.

- Following high level workshops and study tours organized by the Bank in Mexico, Chile and Indonesia (2008), the Bank prepared at the Government's request a Targeting and Social Protection Strategy Note. A key recommendation of the Note is to reform subsidies which would free up the resources needed to scale up better targeted and more cost/efficient social protection programs.

- The Bank also carried out a political economy analysis of reform acceptability dynamics targeting butane subsidies based on quantitative (nationally representative survey) and qualitative techniques (interviews and focus groups). The analysis showed the limited leeway for comprehensive subsidy reform, the need for gradualism in carrying out the reform agenda, and the need for a thorough communication campaign aimed at informing the population of the very existence of the subsidy system, in addition to its benefits and disadvantages.

- To assess the long term welfare impacts of reforms, the Bank also helped the Haut Commissariat au Plan (HCP) and the Ministry of Energy develop a Computable General Equilibrium (CGE) model capable of assessing the longer term trade-offs (2030) involved in achieving Morocco’s ambitious renewables and efficiency objectives and carrying

out subsidy reform, including in terms of distributional impacts. 2.2 The German Development Cooperation (GIZ) supported a study on Environmental Fiscal Reform which benchmarked

international experiences in environmental taxation and possible avenues to introduce environmental taxes in Morocco. Additionally, the Bank is currently providing technical assistance to the Ministry of Environment and the Directorates of (i) Budget; (ii) Taxes; and (iii) Customs of the Ministry of Economy and Finance to define the framework for introducing future environment taxation to additional polluting products and practices. The Bank, together with other donors, provided TA to help GoM demonstrate the win-win to be gained from integrating depollution within a broader processes of improving efficiency within firms, starting with industries generating organic pollution and potential for biogas generation, such as agro-industries.

Pillar 3 – Strengthening and diversifying the rural economy by leveraging human capital 3.1 The FDA (Fond de Développement Agricole) has traditionally subsidized seeding machineries, with an average over 2011-

2015 of more than 500 machines per year corresponding to a subsidy of MAD 20 million. The subsidy targeting direct

18 MEMEE / GIZ (2014): Étude sur l'opportunité de développement du photovoltaïque résidentiel à grande échelle au Maroc connecté au réseau Basse Tension 19 Additional analytical underpinnings related to this axis are described in the Poverty and Social Impacts section of DPL1.

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Prior actions


seeding machines has been effective in 2015 for the first year, and 12 requests were received corresponding to a subsidy of MAD 0.5 million. This represents 2% of the envelope allocated to seeders (traditional and direct) in 2015, which amounted to MAD 22 million. It should be noted that in 2015, 13 additional direct seeders were purchased on grant funds in the frame of the GEF project on Integrating Climate Change in the Implementation of the Plan Maroc Vert, to the benefit of the farmers associations in the regions of Chaouia Ouardigha and Rabat Salé Zemmour Zaer. While there are clear signs of increasing interest of farmers in the technique, with positive impacts recorded on the ground, the target initially set for the DPL series (16.9% of the FDA envelope allocated to seeders - traditional and direct – directed to direct seeders by September 2017) is too ambitious considering a) the time required for a new technology to be picked up by farmers, especially small ones and b) the fact that in 2015 some seeding machine have been purchased from grant funds instead of FDA. The target is thus reduced to 6%.

3.2.1 The analytical work leading to the Halieutis strategy, in which GoM identified aquaculture as a priority in increasing national production of fish products underpins the aquaculture axis. More analysis was carried out in the context of a GEF grant initiated in 2012 and targeted at pilot projects on integrated coastal zone management along the eastern Mediterranean coast of Morocco (P121271), and for which aquaculture is one of the main activities. In addition, ANDA commissioned a number of technical papers and benchmark studies, including to set up the level at which the licensing fees should be set. Finally, the willingness to pay of private operators for license fees was further determined through the results of various calls for bids (Appels à manifestation d’intéret) that were launched by ANDA. The analytical work behind the development of the Directive and the SEA aimed at strengthening the control framework for aquaculture investments was funded by GIZ.

3.2.2 The World Bank provided technical assistance to the Ministry of Tourism on the development of its ecotourism program. This study involved consultations with a large array of stakeholders ─ both at central and local levels. The results of the study have been a central input in the WB-Ministry of Tourism dialogue, which has very positively evolved towards the identification of a sectoral PforR currently under identification.

Overall Country Environmental Performance Review20

The United Nations Economic Commission for Europe has published in 2014 its first in depth environmental performance review (EPR) of Morocco. This work was particularly notable, as Morocco was the first country outside the Economic Commission for Europe region to request an EPR. As all EPRs, it was subject to a thorough peer review process. The proposed DPL2 and the EPR are fully consistent and both aim at promoting sustainable development in Morocco. While the EPR covers a wide range of environmental subjects, this box provides a synopsis of the commonalities between the ERP’s recommendations and policies supported by DPL2: • Overall, the ERP recognizes that Morocco has put in place the foundations for a more diversified environmental

protection policy and is increasingly placing emphasis on matters of sustainable development. It encourages the Government to further promote the development and adoption of its National Sustainable Development Strategy. The proposed DPL2 supports Morocco’s National Sustainable Development Strategy (see Box 2) particularly as it helps the country achieve its transition towards a green economy.

• The ERP recommends the finalization, adoption and implementation of the Coastal Zone Law (Policy Area 1.1.1). • The ERP recognizes the damaging impact of overexploiting aquifer and highlights the need to improve the performance

management of all water bodies (Policy Area 1.2.1). • The ERP encourages the removal of environmentally harmful energy and recommends introducing a system of social

assistance for low-income households that can be affected by the new tariff structure (Policy Area 2.1.4) • The ERP fully support the development of renewable energy and the creation of incentive to promote renewable energy

(Policy Areas 2.1.1 and 2.1.2). • The ERP recognizes Morocco’s progress in the use of economic instruments (such as the Voluntary Industrial

Depollution Mechanism) to create incentives for more environmentally friendly businesses (Policy Area 2.2.1). Source: IGG DPL project appraisal document (PAD).

Table A3. IGG DPL Series Contribution to CPS 2014-2017 OutcomesCPS Outcome IGG Prior Action IGG Policy

AreaIGG PDO

1.3 Increase the productivity and value-added of the agri-food sector;

DPL 1 - Order (Arrête) No. 3186-13 dated November 13, 2013 modifying and completing Order (Arrete) No. 368-10 dated January 26, 2010, on subsidies for agricultural equipment, introducing a subsidy for the purchase of direct seeding equipment, has been transmitted by the Minister of Economy and Finance to the General Secretariat of the Government for publication in the National Gazette, on November 19, 2013.DPL2 - The Ministry of Agriculture and Fisheries and the Department of National Meteorology signed the framework partnership agreement No. 03/2014/DMN-MAPM for the provision of agrometeorological information to the agricultural sector, on March 21, 2014.

3.1 Green technologies in the agricultural sector

PDO3 – Strengthening and diversifying the rural economy by leveraging human capital

1.4 Better leverage the

DPL 1 - Order (Arrête) No. 3151-13 dated November 11, 2013, establishing the technical and economic criteria setting the lease fee to be

3.2 Diversification

20 United Nations Economic Commission for Europe. 2014. Morocco Environmental Performance Review

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socio-economic potential of integrated rural development and of tourism;

paid by aquaculture farms, has been transmitted by the Minister of Economy and Finance to the General Secretariat of the Government for publication in the National Gazette, on November 15, 2013.DPL 2 - The National Committee on Environmental Impact Studies has validated the Directive on environmental impact assessments in the aquaculture sector on March 26, 2015; and the National Aquaculture Development Agency (Agence Nationale pour le Developpement de l'Aquaculture) has published on its website its strategic environmental assessment for the aquaculture sector, on October 1, 2015. DPL 2 – The inter-ministerial agreement launching the national rural and eco-tourism program (Qariati) has been signed by the Minister of Interior, the Minister of Urbanism and Territorial Planning, the Minister of Agriculture and Marine Fisheries, the Minister of Tourism, the Minister of Handicrafts and Social and Inclusive Economy, the Minister of Youth and Sports, and the Minister in charge of Environment, under the Minister of Energy, Mines Water and Environment, on September 29, 2014.

of rural revenues

1.5 Improve reliability of electricity supply;

DPL 1- The Council of Government has adopted on November 14, 2013, the Decree on energy efficiency in the building sector.DPL 1- Order (Arrête) No. 3.69.13 dated August 19, 2013, introducing automatic price adjustments for diesel, gasoline and fuel has been published in the National Gazette No. 6182 dated August 29, 2013.DPL 2- The Council of Government has approved draft Law NO. 48-15 creating the National Agency for Electricity Regulation (Autorité Nationale de Régulation de l'Electricité), on September 17, 2015.DPL 2 - The Council of Government has adopted Decree No. 2-15-772 regarding access to the national medium voltage electricity network, on October 12, 2015. DPL 2 - The Council of Government has approved draft Law No. 58-15 amending and completing Law No. 13-09, to provide renewable energy solutions for low voltage customers, on August 27, 2015. DPL 2- The 2015 Budget Law (Law No. 100-14), which increased the funding to social programs following energy subsidy cuts, has been published in the National Gazette No. 6320 bis, dated December 25, 2014.

2.1 Low carbon growth

PDO2 Greening physical capital

1.7. Improve access to and effectiveness of social protection programs, especially for youth;2.2 Increase renewable energy generation and enhance energy efficiency; 2.1. Strengthen management of soil, coastal and water resources;

DPL 1- The Council of Government has approved the draft Law on integrated coastal zone management, on May 16, 2013.DPL 1 - The Council of Government has approved the draft Law on illegal fishing on March 28, 2013.DPL 1- The Ministers of Interior, Agriculture and Water have issued the Inter-Ministerial Circular (Circulaire) requiring the conclusion of groundwater management agreements (contrats de nappes) on November 15, 2013.DPL 2 - The Council of Government (Conseil du Gouvernement) has adopted Decree No. 2.15.769 regulating, inter alia, the formulation of the National Coastal Zone Management Plan (Plan National d'Aménagement du Littoral), on November 5, 2015.DPL 2 - The Minister of Agriculture and Marine Fisheries has issued Decision No. 001/Cab/PM containing the National Enforcement Plan for Marine Fisheries (Plan National de Contr6le des Activités de la Pêche Maritime), on April 1, 2015.DPL 2 - Law No. 36-15 on water approved, setting provisions for, inter alia, participatory groundwater management, on November 19, 2015.

1.1 management of coastal and marine assets1.2 Water sector governance

PDO1 Improving the management of natural capital

DPL 1 - The three Orders (Arrêtes) No. 2942.13, No. 2943.13 and No. 2944.13 dated October 7, 2013, on monitoring and controlling industrial wastewater discharges in the water domain stating a) general limit values; b) characteristic values and specific coefficients; and c) minimum treatment efficiency of industrial wastewater treatment plants, have been published in the National Gazette No. 6199 dated October 28, 2013.DPL 2- The Council of Ministers has approved on March 7, 2013, the draft Framework Law on environment and sustainable development setting forth, in particular, the establishment of a comprehensive green fiscal framework.

2.2 Pollution management

PDO2 Greening physical capital

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Table A4. Overview of Share of the envelope allocated to direct seeders in the total FDA envelope allocated to seeders

YearTotal Seeders Other Seeder Direct Seeders

Amount(MDh)

No. of units

Amount (MDh) % No. of

units % Amount (MDh) % No. of

Units %

2010 44.47 1,016 44.47 1,016

Not monitored2011 20.99 581 20.99 581 2012 19.73 531 19.73 531 2013 16.52 423 16.52 423 2014 23.04 557 23.04 100% 557 100% 0.00 0% - 0%2015 25.80 620 25.19 98% 605 98% 0.61 2% 15 2%2016 39.44 897 38.76 98% 881 98% 0.69 2% 16 2%

2017 (AU 20/09) 12.39 315 12.14 98% 310 98% 0.24 2% 5 2%Total 2010-2017 202.37 4,940 Total 2015-2017 77.63 1,832 76.10 98% 1,796 98% 1.54 2% 36 2%

Source: Ministry of Agriculture and Fisheries, Department of Agriculture. September 2017.

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Figure A1. PNL Development Process

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Process is here

Figure A2. SRL Approval Process.

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Process is here

Annex 8. MAP

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Morocco - Inclusive Green Growth DPLs 1 and 2...

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