The German Development Bank, KfW signed on Wednesday a financing contract of €39.67 million in total with the Ministry of Foreign Affairs and the “Caisse des Prêts et de Soutien des Collectivités Locales (CPSCL)” for the benefit of the Local Government Financing Program (FICOL II).
The project aims to support the decentralization process in Tunisia through improving access to basic municipal infrastructure in the extension areas of the extended communes.
€36.67 million loans are earmarked to finance the infrastructure and equipment of up to 185 extended communes.
At the same time, an additional financial contribution of €3 million is provided for technical assistance to strengthen the technical and financial capacities of the beneficiary Local Authorities and the CPSCL services.
KfW signed this contract on behalf of the German Federal Government. It supports reforms and infrastructure in developing countries. Its objectives include the sustainable improvement of the economic and social situation of the population, the reduction of poverty and the protection of the environment and climate.
