A Framework Agreement was signed  in the city of Rabat between the Government of the Kingdom of Morocco and Kuwait Fund for Arab Economic Development concerning the utilization of a grant of US$ 1.25 billion by the Government of the State of Kuwait to the Kingdom of Morocco for the financing of Development Projects, the administration of the Grant having been entrusted by the Government of the State of Kuwait to Kuwait Fund. 

 The Grant is being made within the framework of the Program of the Gulf Cooperation Council (G.C.C.) program for development in the Kingdom of Morocco and the of Hashemite Kingdom of Jordan, as the Supreme Council of the G.C.C., at its meeting held in Riyadh on 20^th of December 2011, has approved the decision of the Ministerial Council of G.C.C., at its 121^st Session held on 11 September 2011, to approve a program for the financing of development projects in Kingdom of Morocco and the Hashemite Kingdom of Jordan and to allocate an amount of US$ 10 billion over a period of 10 years for the said Program.

Further, the said decision provided that out of the said allocation an amount of US$ 5 billion is to be allocated for the financing of development projects in the Kingdom of Morocco and an amount of US$ 5 billion is to be allocated for the financing of development projects in the Hashemite Kingdom of Jordan.

Hence, the Council of Ministers of the State of Kuwait adopted on 30/7/2012 its Resolution No. (847) whereby it approved the allocation of US$ 2.5 billion, said amount representing the relative portion to be contributed by the State of Kuwait to the resources of the aforementioned Program and is to be provided over a period of 10 years commencing as of the financial year 2012/2013 such that an annual allocation of US$ 500 million is to be made, and such allocation is to be divided equally between the Kingdom of Morocco and the Hashemite Kingdom of Jordan.

The Framework Agreement was signed on behalf of the Kingdom of Morocco by His Excellency Mr. Nizar Baraka, Minister of Economy and Finance of the Kingdom of Morocco, whereas Mr. Abdulwahab Ahmed Al-Bader, Director-General of Kuwait Fund for Arab Economic Development, signed the Agreement on behalf of the Fund.

The Framework Agreement defines the manner of administration and conditions concerning utilization of the Grant; it provides that the proceeds of the Grant are be used for the financing of projects which are accorded priority by the Government of the Kingdom of Morocco and are agreed upon between the Government and Kuwait Fund following evaluation of such projects by the Fund to ascertain their feasibility.  Such Projects may fall in various sectors including the social sector, and funds from the Grant may also be used to finance sectorial studies and feasibility studies and designs for development projects as well as training for the purpose of capacity building. Agreement reached between the Government of the Kingdom of Morocco and the Fund on the projects to be financed from the proceeds of the Grant.

While the Framework Agreement contains the arrangements and conditions of general application to utilization of the proceeds of the Grant, special agreements will be concluded with respect to the financing of each project, studies or training program so as to take account of the special circumstances and requirements pertaining to each.

It is worth mentioning that the number of loans provided by the Kuwait Fund for Morocco 37 Loans totaling about 388 million Kuwaiti Dinars, the equivalent of about 1.3 billion U.S. Dollars to finance projects in various sectors, in addition to 2 Grants and Technical Assistance totaling about 1.5 million Kuwaiti Dinars, equivalent to about 3.9 million US Dollars to finance the preparation of the technical and economic feasibility studies for two projects in the sectors of Potable Water and Social Services.