World Bank loan to improve asset management in Morocco
With the aim of improving public asset management systems in Morocco, the World Bank has approved a loan for $45 million to support public expenditure rationalization and efficiency, notably in the public education and health sectors.
The Asset Management Loan will generate efficiency gains and medium/long-term savings and improve the maintenance of properties. The preparation of this loan has also served to promote policy dialogue, partnership and ownership that are essential not only for the implementation of this operation but also for the long-term reforms needed on overall budget and financial management in Morocco.
Morocco, like many other countries, treats its public land and real estate holdings as public goods, rather than productive assets capable of producing a mix of significant returns and social benefits if properly managed. Land and real estate typically represent 25 to 50 percent of public entities' assets.
The replacement cost of the buildings of the ministries of health, education and higher education alone amount to over nine percent of GDP. The potential savings from improved management of this land and real asset portfolio are significant and could generate substantial economic and efficiency gains. The loan program will help Morocco achieve these gains by promoting the development of a national asset management policy and buildings management systems.
The proposed loan program promotes three key objectives of the Country Assistance Strategy (CAS) for Morocco: expenditure rationalization, long-term fiscal sustainability, and improved service delivery in the social sectors. — (menareport.com)
© 2003 Mena Report (www.menareport.com)