The European Investment Bank (EIB) has granted Tunisia a €30 million (≈ TND 100 million) financing package to strengthen drinking water supply systems in Greater Tunis and the Tunis Financial Harbor. Port.
This financing aims to strengthen support for the water and sanitation sector in Tunisia.
It comprises two financing agreements, one for the National Water Distribution Utility (SONEDE) for €22 million and the other for the Republic of Tunisia for €8 million.
“We have signed a first credit agreement for €8 million (nearly 27 million dinars), granted to the Republic of Tunisia for the supply of drinking water to the El Hassiane financial harbor project, in the Raoued delegation (Ariana governorate),” Samir Abdelhafidh, Minister of the Economy and Planning, said at the signing of this loan on Monday.
This sovereign loan is repayable over 30 years with a 6-year grace period. It will be granted at a fixed or variable interest rate, at Tunisia’s discretion.
The second credit guarantee agreement concerns an additional direct loan of €22 million (TND 73 million) to SONEDE for the construction of a drinking water treatment plant in Bejaoua to reinforce and guarantee the water supply in the Greater Tunis region.
The loan will be repaid over 22 years, with a 6-year grace period, the Minister added.
This is a direct loan with a term of 22 years, including a 6-year grace period for each installment disbursed, at a fixed or variable interest rate, at Tunisia’s choice.
Under the banner of food security, “these two financing operations underline Tunisia’s commitment to supporting food security and also testify to the mutual trust between Tunisia and the EIB,” the Minister stressed, pointing out that this long-standing cooperation, which dates back to 1979, has resulted in EIB financing of more than €7 billion.
For his part, Hamadi Habaieb, Secretary of State to the Minister for Agriculture, Water and Fisheries, in charge of water resources, pointed out that work was well underway on the new drinking water treatment complex in Greater Tunis, Bejaoua, and its connection to existing infrastructures.
This project is being co-financed by the EIB and French Development Agency (AFD) to the tune of €92 million.
The aim of the project is to reinforce and secure the supply of drinking water to the greater Tunis area, which currently relies almost exclusively on the 8.4 m3/s Ghedir El Golla drinking water treatment complex, as well as the supply of drinking water to the financial port of Tunis.
For his part, EIB Vice-President Loannis Tsakiris stressed that the Bank was continuing to strengthen its support for development projects in Tunisia, adding that this financing agreement was in line with programs to promote sustainable development and combat climate change.
In addition, the EIB is launching a new strategic partnership with the World Wildlife Fund (WWF) on behalf of the Office National de l’Assainissement (ONAS) to promote nature-based solutions (NBS) to meet the challenges of water and climate change.
The study, which focuses on the applicability of NBS in cities with less than 3,000 inhabitants, will be presented shortly to identify a pilot project to be developed with the support of international partners.
In parallel, an EU-funded technical assistance contribution of €5 million, implemented in partnership with the EIB, will support the Ministry of Economy and Planning in the preparation of a new generation of public investment projects.
This assistance will aim to improve the quality, sustainability and resilience of future projects in key sectors for Tunisia’s long-term development.
