The Tunisian parliament's office has referred a draft law to the Finance and Budget Committee, with an urgent request for consideration, regarding a guarantee agreement between Tunisia and the African Development Bank. The agreement is for a €111.5 million loan to help finance a project aimed at improving the technical and energy efficiency of the Greater Tunis drinking water network. The total cost of the project is €151.1 million.
The project, set to run from 2026 to 2031, aims to modernize the drinking water distribution network in Greater Tunis, improve its technical and energy efficiency, and reduce water loss and leaks. The project also includes developing remote monitoring and control systems for the network and rationalizing energy consumption. The project consists of four main components, including the rehabilitation of water supply and distribution networks.
The rehabilitation of water supply and distribution networks is budgeted at €92.9 million, while the energy transition for the Greater Tunis drinking water network is set at €24.6 million. The digitization of network management and the implementation of smart systems is budgeted at €18.6 million, and enhancing the technical capacities of the National Company for Water Exploitation and Distribution is set at €15 million.
The project includes the rehabilitation of approximately 25 kilometers of water supply pipes and 113 kilometers of distribution networks that are most affected, as well as the acquisition of equipment for detecting leaks and establishing a central measurement, monitoring, and remote control system. The project also involves the acquisition and installation of 120,000 smart meters.
The loan agreement has a repayment period of 20 years, with a five-year grace period, and a variable interest rate equal to the six-month Euribor rate, plus a 0.8% margin. The agreement also provides for an opening commission and a commitment commission of 0.25% each. The project is co-financed by a €30 million grant from the European Union and a €9.6 million contribution from the National Company for Water Exploitation and Distribution.
The upgrade is expected to significantly improve the efficiency of the drinking water network in Greater Tunis, reducing water loss and leaks, and enhancing the overall performance of the network. The project will also contribute to the country's efforts to promote sustainable water management practices and reduce energy consumption.
The implementation of the project is expected to have a positive impact on the environment and public health, by reducing water waste and improving access to clean drinking water for residents in Greater Tunis. The project is part of Tunisia's efforts to modernize its infrastructure and improve the quality of life for its citizens.
Key points
- The project aims to reduce water loss and leaks in the Greater Tunis drinking water network.
- The loan agreement has a repayment period of 20 years, with a five-year grace period.
- The project is co-financed by the African Development Bank, the European Union, and the National Company for Water Exploitation and Distribution.
