VZCZCXRO7729
RR RUEHDE RUEHLMC
DE RUEHRB #1577/01 2341611
ZNR UUUUU ZZH
R 221611Z AUG 06
FM AMEMBASSY RABAT
TO RUEHC/SECSTATE WASHDC 4504
RUEHLMC/MILLENNIUM CHALLENGE CORPORATION WASHINGTON DC
INFO RUEHAD/AMEMBASSY ABU DHABI 0349
RUEHCL/AMCONSUL CASABLANCA 2025
RUEHDE/AMCONSUL DUBAI 0057

UNCLAS SECTION 01 OF 02 RABAT 001577 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON EFIN EINV MO
SUBJECT: MODERNIZING MOROCCO'S CAPITAL 
 
Sensitive but Unclassified-- entire text.  Not for internet 
distribution. 
 
¶1. (SBU) Summary; Lemghari Essakl, General Manager of the 
Agency for Bouregreg Valley Development, called on Ambassador 
on August 9 to outline the Government of Morocco's ambitious 
plans for the development and revitalization of the valley 
separating Rabat and its neighboring city of Sale.  Noting 
that the plan will clean up pollution in the valley, augment 
economic activity (37,000 direct jobs, and twice that many 
indirect ones), and resolve transportation problems between 
the two cities, he added that the overall vision is one of 
making Rabat a city that can match its more developed and 
cosmopolitan Mediterranean rivals.  The ten year plan 
envisions an overall investment total of over USD 1 billion, 
and has already attracted significant participation from 
investors in the United Arab Emirates and Dubai.  End Summary. 
 
¶2.  (SBU) Essakl, who was accompanied by the Agency's 
Director of Marketing and Communication, Omar Benslimane, has 
headed the project since its inception last year.  Earlier, 
he headed a number of other Moroccan development agencies. 
He also serves as chair of the Moroccan chapter of Young Arab 
Leaders (YAL).  In his capacity as General Manager of the 
Bouregreg Valley Agency, he has kept a high media profile, 
while also reaching out to diplomatic missions and others to 
explain the evolution of the project. 
 
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Multiple Goals 
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¶3.  (SBU) Essakl stressed that while the formal project 
debuted last year, it had actually been the subject of 
intensive government study since 2002.  Noting that the 
project integrates environmental, economic and transportation 
goals, he stressed that his agency has been given full 
authority over the 6000 hectares that make up the valley 
floor, and is negotiating conventions with Rabat and Sale to 
implement activities in adjacent areas.  The goal, he said, 
is to create a capital city worthy of Morocco, that is the 
equal of its Mediterranean rivals.  Noting that he had lived 
abroad for many years, he bemoaned the lack of "vitality" in 
the Moroccan capital, and expressed hope that the project 
would help remedy that deficiency.  He emphasized, however, 
that the first order of business has been environmental, 
given the volume of solid waste, sewage, and industrial 
chemicals that have historically been discharged into the 
valley.  In addition to closing the Oulja landfill (located 
in the valley just below the Embassy), the government will 
also divert the other flows from the Bouregreg river to a 
wastewater network, where they will be treated and processed. 
 A tender for that facility brought three bids, (including 
one from an American company), which are currently under 
review.  Essakl predicted that this phase of the project 
should be completed by the end of 2007, noting that discharge 
into the valley has already been cut by 80 percent.  Costs 
will be covered by the national government, together with 
localities and those in the affected areas. 
 
¶4.  (SBU) Economically, the project will transform the 
oceanfront and river valley, making the river navigable and 
creating new ports for both pleasure craft and fishing boats. 
 In addition to dredging, the authority will erect barriers 
to ensure that the channel does not again silt up.  The plan 
envisions a transformed waterfront, with the ports surrounded 
by a City of Arts and Crafts, shopping malls, restaurants, 
hotels, and other tourist facilities.  In response to a 
question from the Ambassador, Essakl stressed that while the 
existing fishing port will be moved slightly from its current 
location, it will remain in the area, to contribute to its 
diversity and highlight an important element of Morocco's 
coastal culture.  In the future, he even envisioned 
construction of a cruise ship terminal, from which excursions 
to Meknes and Fes could be organized. 
 
¶5. (SBU) The project's transportation component is also 
ambitious, with plans for new bridges and a tramway from Sale 
to Rabat to relieve urban traffic.  Work on the latter's 12 
mile route will commence in 2007, and is targeted for 
completion in 2010.  A tender in that component will be held 
in the near future, Essakl said. 
 
¶6.  (SBU) Essakl stressed that certain zones in the valley 
that are important habitats for migrating birds will be 
walled off from development, to protect the area's 
environmental richness.  Beyond the economic and 
environmental impact, he also noted a cultural component in 
protection of a range of sites including the historic Chellah 
 
RABAT 00001577  002 OF 002 
 
 
in Rabat.  Already talks are underway, he said, with UNESCO 
regarding possible financing of the excavation of an ancient 
port which has been uncovered near the oceanfront, and which 
could ultimately be incorporated into the plan. 
 
¶7. (SBU) Essakl emphasized that the project will also have an 
immediate short-term economic impact, creating 37,000 new 
jobs directly, and twice that number indirectly in the 
construction and other sectors.  The project's vision, he 
said, is of a wealth-creating investment that will create 
other investments and have a multiplier effect on economic 
life in both Rabat and Sale.  He noted this impact will come 
in the financial sector as well.  Investors in Abu Dhabi and 
the United Arab Emirates have already signed on to the 
project, and he predicted that large Moroccan banks would 
participate as well.  These investments cover a large part of 
the project's anticipated USD 1 billion cost, while the 
government, both through the national budget and the Hassan 
II fund, will also allocate significant funds, including 
nearly USD 300 million for the project's first phase. 
 
¶8. (SBU)  Comment: Ambassador probed gently about prospects 
for rapid realization of this ambitious vision, noting the 
difficulties that can sometimes emerge in project 
implementation.  Essakl professed optimism, noting in 
particular that the goal of ridding the valley of pollution 
"can be realized" by the end of 2007.  While conceding that 
major projects sometimes do not achieve their expected 
economic viability, he judged that even in such cases the 
resulting infrastructure can be worth the cost, pointing to 
the "chunnel" as an example.  End Comment. 
****************************************** 
Visit Embassy Rabat's Classified Website; 
http://www.state.sgov.gov/p/nea/rabat 
****************************************** 
 
RILEY