Kingdom of Morocco

Laayoune City Ring Road

Loan No.:


Interest Rate:

2.5 %


Ministry of Equipment, Transport, Logistics and Water

Grace Period:

6 years

Project Cost:

KD 53.3 million


30 years

Amount of Loan:

KD 42.0 million


49 semi-annual installments

Date of Board Approval:


First Installment:

6 years following the first disbursement

Date of Loan Effectiveness:



The project aims at contributing to the improvement of land transportation services on the main road network in Laayoune and its surrounding areas, by absorbing and transferring part of the city centerís increasing traffic, and the traffic passing through the city, as well as decreasing congestion and traffic accidents. The project also aims at improving the connection between the northern and southern parts of Morocco.


The project, which is expected to be completed by the end of the first quarter of 2023, includes the construction of a ring road west of Laayoune, allowing the passing traffic to flow around the city without entering it, in addition to the construction of a large bridge over Wadi Sakia El Hamra.

The project consists of the following components:

  1. Construction of the Road and Bridge:
    1. The Road: This comprises the construction and civil works necessary for a new ring road, with a total length of about 5.5 km, and four traffic lanes. This includes earthworks, such as digging and filling, pavement layers and paving, in addition to road protection works from sand encroachment, traffic safety signals, and other complementary works required for the construction of the road.
    2. The Bridge: This comprises the construction and civil works necessary for a large concrete bridge over Wadi Sakia El Hamra, with a total length of about 1700 m, and four traffic lanes. This includes the construction of deep foundations, precast concrete works, in addition to the necessary complementary works required for the construction of the bridge.
  2. Consultancy Services: This includes the consultancy services necessary for the preparation of studies and completion of designs, bid documents, project supervision, in addition to the use of specialized laboratories to ensure quality control and other complementary services.
  3. Institutional Support: This includes the provision of the necessary equipment to the interim directorate to implement the project, as well as the machinery and equipment needed for maintenance and protection of the road from sand encroachment. This also includes the organization of training courses for the ministryís employees on the studies and supervision of road and bridge project implementation.
  4. Land Acquisition: This component includes the acquisition of land and the acquisition of the rights to the land required for the implementation of the project and its operation.


The Arab Fundís loan covers about 79% of the total project cost. The Moroccan Government will cover the remaining cost of the project and any additional cost that may arise.

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