Morocco: Grand Nokoué Sustainable Urban Mobility Project

proposed

This Program is a co-financing operation with the World Bank's (WB) Program-for-Results (PforR) “Climate Operation - Support to the Nationally Determined Contribution (NDC),” declared effective since January 8, 2024 and which consists of two Result Areas (RAs): - RA1: Strengthen Policy and Institutional Capacity in Green Public Finance Management, Green Finance, and Climate Data; and - RA2: Enhance Resilience to Climate Change of Vulnerable People and Ecosystems. AIIB's co-financing of USD200 million is designed to add value to the WB's efforts and scale up the activities and impact across both Result Areas of the PforR. Under RA1 (RA1.2), the Program will enhance the PforR by supporting the expansion of Morocco's climate information infrastructure, notably through the acquisition and operationalization of new all-weather radars. This will bolster real-time weather forecasting, disaster preparedness, air quality monitoring, and data-driven climate planning which are also needed for optimization and safety of renewable energy operations, especially hydropower and wind power. Under RA2 (RA2.2), AIIB will scale up the PforR's scope of activities by supporting the creation or upgrading of agricultural and para-agricultural service cooperatives in oasis areas, as well as the construction and equipping of additional date palm valorization units. In addition, AIIB will finance complementary activities to the PforR: the plantation of climate-resilient species (e.g., cactus, carob, argan, olive, data palm, almond, caper), the support to targeted research programs on palm tree and argan tree, and the rehabilitation of traditional hydrological infrastructures. Together, these efforts will enhance the depth of RA2 by reinforcing the carbon sequestration as well as resilience of vulnerable oasis ecosystems through targeted nature-based solutions and improved rural value chains. These interventions, aligned with both the mitigation and climate adaptation and resilience goals of the Paris Agreement, deliver dual climate benefits—sequestering carbon and enhancing resilience—while supporting rural livelihoods, especially for women and youth. This Program aligns with the national priorities set out in Morocco's 2021 NDC, the 2023 Finance Law, and multi-year budget frameworks. The use of Results-Based Financing (RBF) ensures a strong strategic fit with AIIB's priorities and capitalizes on Morocco's proven capacity to plan and execute budget-linked reforms.