Identifier
Created
Classification
Origin
06RABAT171
2006-02-02 14:29:00
UNCLASSIFIED
Embassy Rabat
Cable title:  

MOROCCO ECONOMIC HIGHLIGHTS

Tags:  ECON EPCS ENRG EAIR KFLU MO 
pdf how-to read a cable
VZCZCXRO0347
RR RUEHLMC
DE RUEHRB #0171/01 0331429
ZNR UUUUU ZZH
R 021429Z FEB 06
FM AMEMBASSY RABAT
TO RUEHC/SECSTATE WASHDC 2632
INFO RUEHCL/AMCONSUL CASABLANCA 1146
RUEHAS/AMEMBASSY ALGIERS 3683
RUEHTU/AMEMBASSY TUNIS 8586
RUEHNK/AMEMBASSY NOUAKCHOTT 2943
RUEHFR/AMEMBASSY PARIS 3963
RUEHRO/AMEMBASSY ROME 1415
RUEHMD/AMEMBASSY MADRID 5322
RUEHLO/AMEMBASSY LONDON 2737
RUEATRS/DEPTTREAS WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHC/DEPT OF LABOR WASHDC
RUEHRC/USDA FAS WASHDC 0839
RUEAORC/USCBP WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RUEHLMC/MILLENNIUM CHALLENGE CORP
RHMCSUU/DEPT OF ENERGY WASHINGTON DC
RUEAEPA/HQ EPA WASHINGTON DC
UNCLAS SECTION 01 OF 02 RABAT 000171 

SIPDIS

SIPDIS

DEPT FOR NEA/MAG, NEA/OFI AND INL/AAE
DEPT ALSO FOR EB/TPP, EB/IFD AND DRL/IL
STATE PASS USTR FOR DOUG BELL
STATE PASS USAID FOR JENNIFER RAGLAND
USDOC ITA/MAC/ANESA FOR DAVID ROTH
USDOC FOR FSC/OIO AND CLDP
USDOL FOR ILAB
PARIS FOR ZEYA
LONDON FOR TSOU
ROME FOR ROSE

E.O. 12958: N/A
TAGS: ECON EPCS ENRG EAIR KFLU MO
SUBJECT: MOROCCO ECONOMIC HIGHLIGHTS

-----------------------------------
Maroc Telecom Revenue up 18 Percent
-----------------------------------

UNCLAS SECTION 01 OF 02 RABAT 000171

SIPDIS

SIPDIS

DEPT FOR NEA/MAG, NEA/OFI AND INL/AAE
DEPT ALSO FOR EB/TPP, EB/IFD AND DRL/IL
STATE PASS USTR FOR DOUG BELL
STATE PASS USAID FOR JENNIFER RAGLAND
USDOC ITA/MAC/ANESA FOR DAVID ROTH
USDOC FOR FSC/OIO AND CLDP
USDOL FOR ILAB
PARIS FOR ZEYA
LONDON FOR TSOU
ROME FOR ROSE

E.O. 12958: N/A
TAGS: ECON EPCS ENRG EAIR KFLU MO
SUBJECT: MOROCCO ECONOMIC HIGHLIGHTS

--------------
Maroc Telecom Revenue up 18 Percent
--------------


1. Maroc Telecom's 2005 fourth quarter revenue was up 18
percent over the previous year to $574 million, mostly
resulting from the strength of its mobile phone division.
The company's mobile phone customer base grew 38 percent
during 2005 to 8.8 million. An increase in ADSL internet
lines to 242,000 helped sustain the performance of the
company's fixed-line division.

--------------
Cameras to Detect Avian Flu
--------------


2. Thermal imaging cameras have been installed at
Casablanca's Mohammed V International Airport to detect
signs of avian influenza symptoms among passengers and
prevent the disease from entering Morocco. Noting that
avian flu has not appeared in Morocco, Health Minister
Mohammed Cheikh Biadillah said the country has nonetheless
ordered one million doses of antiviral drugs from France's
Pasteur Institute as a precautionary measure.

--------------
Electricity for Rural Areas
--------------


3. The Moroccan National Electricity Office (ONE) will
connect 4,500 rural villages to the national electrical grid
in 2006, providing some 206,000 families with access to
power for the first time. An additional 21,000 families in
500 villages will be supplied with solar photovoltaic kits
which provide power for lights and small electrical
appliances like TVs and radios. These expansions will bring
the level of rural electrification in Morocco to 89 percent
of all villages by the end of 2006, up from just 18 percent
in 1994. To do this, the ONE will invest $4.2 billion
during the 2006-2010 period.

--------------
Moving Away from Oil Subsidies
--------------


4. Morocco's oil imports bill rose by 65 percent in the
first 11 months of 2005 compared to the previous year,
costing the country $2.46 billion. The government continues
to subsidize the price of fuel in Morocco; although the GOM
raised fuel prices three times in 2005 to try to reduce the
gap between what the state and the consumer pay. The
government is now considering establishing an indexation
system under which internal prices would be directly
determined by international oil prices. The GOM is also
working to diversify imported energy sources, develop
renewable energy, and promote oil exploration within
Morocco. Diversification has helped decrease the share of
oil products in the country's total energy consumption from
74 percent in 1995 to 60 percent in 2005, mostly through an
increase in use of coal, the introduction of natural gas in
electricity production, and the use of wind energy.

--------------
National Airline Nets Record Income

RABAT 00000171 002 OF 002


--------------


5. Moroccan national airline Royal Air Maroc (RAM) earned a
record $31 million in 2005 despite high fuel prices. The
company's gross income in 2005 was $934 million, a nine
percent increase over the previous year. RAM and its low-
cost offshoot Atlas Blue - created in October 2004 - served
4.5 million passengers in 2005, a 20 percent increase over

2004.

--------------
Cost of Living up Slightly
--------------


6. Morocco's cost of living index rose by one percent for
the year 2005, reflecting the slight increases in the prices
of food products (up 0.3 percent) and non-food products (up
1.5 percent). Inflation for 2004 was 1.5 percent. 2005
inflation was highest in the south-western city of Agadir
(up 1.5 percent),and central-south city of Marrakech (up
1.4 percent),while Meknes and Fez (center) registered the
lowest increases.