Announcement of Twenty-Three Million US Dollars Loan to Tunisia for a Water Supply Project on May 30, 1974

1818 H STREET, N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bmik Pre.as·' lelease No. 74 /38 Subject: $23 million loan to Tunisia for a May 3>, 1974 water supply project. The World Bank has approved a loan of $23 million to help finance a third., water supply project in the Republic of Tunisia. This loan will assist.the Societe Nationale d'Exploitation et de Distribution des Eaux (SONEDE)in the financing of major components of its 1974-78 investment pro.gram. SONEDE is carrying out two projects for water supply with Bank Group financial assistance. The major component of the project will improve water supply in Sfax, Tunisia's second largest city (population 260,000 in 1972). The project works are urgently • needed to meet demand arising from rapid urban development, which has outstripped the capacity of present water sources. They are .intended to stop the continual deterioration in supply, which otherwise is likely to hamper the further development of the city. The project works will also help alleviate possible health risks. They are intended to meet demand until at least 1981. Other components of the project will serve to bring piped water supplies to many low-income groups in urban and rural areas for the first time. The total project cost is estimated at $42.6 million. The foreign exchange component is $24.2 million or 57 per cent of the total cost. The Bank loan will provide 54 per cent of the estimated cost of the project. The Bank loan is for 25 years, including 5 years of grace, with interest at 7-1/4 per cent per annum • • Note: Money figures are expressed in US dollar equivalents.  TECHNICAL DATA May 30, 1974 • PROJECT: Water supply project COUNTRY: Republic of Tunisia TOTAL COST: $42. 6 million BANK FINANCING: $23 million, for 25 years, including 5 years of grace, with interest at 7-1/4 per cent per annum. OTHER FINANCING: Net internal cash generation IMPLEMENTING ORGANIZATION: Societe Nationale d'Exploitation et de Distribution des Eaux (SONEDE) PROJECT DESCRIPTION: Water supply for Sfax including drilling •:- · -:~:.,.s, trans- mission pipeline, reservoirs and expansion of distribution system; improvement of supply to and distribution in adjacent villages of Agareb, Mahres and Menzel Chaker; national program of distribution network extensions; PROCUREMENT: supply to 62 rural centers; and study of economic costs of distributing potable water with different salinity levels. - international competitive bidding for supply of all pipe and for installation of Sfax transmission main. • - local advertising and competitive bidding for pipe installation in Sfax and adjacent villages. CONSULTANTS, TECHNICAL ASSISTANCE: - for detailed design and preparation of tender documents for Sfax component (SOGREAH, France) - for salinity study ESTIMATED COMPLETION DATE: September 30, 1978 -0- •