The Development, Investment and International Cooperation Ministry and the German Development Bank (KfW) Wednesday signed in Tunis a loan agreement of €100 million (about 330 MTD) in the form of budget support for the second phase of the water reform program.
The loan, which will be repayable at an interest rate of 2.2% over 15 years with a grace period of 5 years, will be disbursed in 2019.
Director of KfW Tunis Office Sven Neunsinger said the loan would fund large-scale water reforms. The KfW has €1.2 billion in funds available for projects in progress in Tunisia, half of which are tailored for the water sector.
The bank granted a credit line to Tunisia to finance small- and medium sized enterprises operating in the sectors of energy, environment and infrastructure.
The national water utility SONEDE and the national sanitation agency ONAS are the project recipients in its first phase, the aim being to help improve infrastructure and improve the quality of wastewater.
For his part, Zied Laadhari, Minister of Development, Investment and International Cooperation, emphasized the importance of this program, which targets the strategic water sector.
He also recalled that a loan agreement of €100 million for the financing of the first phase of that program was signed in September 2017.