TUNISIA – The Kuwait Fund for Arab Economic Development (KFAED) has provided a loan of US$98.5 million (263 million Tunisian dinars) additional financing to Tunisia for drinking water projects in urban areas.
In Tunisia, the National Company for the Exploitation and Distribution of Water (SONEDE) has additional funds to reinforce its network. The government of this North African country recently signed a financing agreement with the Kuwait Fund for Arab Economic Development (KFAED).
The funds handed over to the Tunisian government on 29 December 2020 by the KFAED represent the fourth tranche of a total amount of US$500 million pledged by the State of Kuwait at the international investment conference “Tunisia 2020”.
Objective: to support the country’s efforts to improve access to drinking water for the population. In Tunisia, the needs in water are constantly increasing; that is to say by 3% each year.
This sum is granted, through the KFAED, in the form of advantageous credits over 5 years, i.e. US$100 million each year, from 2016 to 2020.
The loan payback period is set at 30 years, including a 6-year grace period, with an interest rate of 2%.
SONEDE will have to improve and develop drinking water transfer networks in the country’s governorates, notably by replacing pipes and building reservoirs, pumping stations, treatment plants and wells.
Like the KFAED, several financial institutions support drinking water projects in Tunisia. In October 2020, SONEDE signed a 38-million-euro financing agreement (nearly 123 million Tunisian dinars) with the European Investment Bank (EIB).
The project is in line with national priorities, notably drinking water supply and sanitation services, targeting 35 urban areas in 17 governorates, directed to about 7 million inhabitants.
The aim is to improve and develop drinking water transfer networks by replacing pipes and building reservoirs, pumping stations, treatment plants and wells.
Moreover, a guarantee agreement between Tunisia and the KFAED, as well as a memorandum of understanding were signed. They involve the construction of two memorials in «Centre Urbain Nord” in the capital and at the entrance to the archaeological city of Kerkouane.
These agreements were signed by Tunisian ambassador to the State of Kuwait Hachemi Ajili, on behalf of Tunisia and Director General of the KFAED Abdulwahab Al-Bader.
The funds will make it possible to develop and modernise the entire drinking water supply system of Greater Tunis, which covers the governorates of Tunis, Ben Arous, Manouba and Ariana. This other financing should guarantee drinking water supply for the 2.8 million inhabitants of Greater Tunis until 2040.
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