Tunisia Allocates 786.1 Million Dinars for Water Program Financing

The Tunisian government has allocated 786.1 million dinars (MD) for financing water projects in the 2027 budget. This funding will support several major hydraulic projects, including the construction of the Mellègue supérieur dam, increasing the storage capacity of the Bouhertma dam, and modernizing the Medjerda-Cap Bon canal. These projects aim to improve the country's water infrastructure and management.

The government plans to renew approximately 300 km of water pipes to enhance the efficiency of the networks. Additionally, the El Zarat and Djerba seawater desalination plants will be expanded, and the Sfax plant's construction will be completed. The government also intends to launch work on new desalination plants for underground brackish water in Kerkennah and Ben Guerdane.

The 2027 budget also includes completing the preparatory phases of the Tanit project, which aims to treat wastewater from five main stations for irrigation purposes. This project will enable the reuse of treated wastewater for irrigating around 11,500 hectares of land under the Office des Terres Domaniales (OTD). The government is also continuing with its program to transfer excess water from the north to the center of the country.

To address the increasing demand for water during the 2027 summer season, the government is developing regional programs. These programs involve drilling and equipping wells, building pumping stations, and acquiring necessary equipment, including mobile power generators. The goal is to enhance water supply and distribution across the country.

A 100 MD credit line will be established from 2027 to 2030 to support small farmers and agricultural cooperatives in the olive oil sector. This credit line aims to provide seasonal and investment loans with preferential interest rates. The government also plans to strengthen the storage capacity of the Office National de l'Huile (ONH) and expand and diversify Tunisian olive oil export markets.

Tunisia's olive oil exports have seen significant growth, with a 39.5% increase as of August 2026 compared to the same period in 2025. Date exports also rose by 11% during the first eight months of 2026. The government aims to encourage local olive oil packaging and enhance its export potential.

The 2027 budget also includes a program to rebuild the national livestock, which will run from 2027 to 2030, with an initial investment of 93 MD in 2027. The government will focus on ensuring the availability and equitable distribution of local seeds, fertilizers, and production inputs, while improving irrigated crops and developing collection and storage systems.

Key points

• The Tunisian government has allocated 786.1 million dinars for water projects in the 2027 budget.
• The government plans to renew approximately 300 km of water pipes and expand desalination plants.
• A 100 MD credit line will support small farmers and agricultural cooperatives in the olive oil sector.