Announcement of World Bank Lends Forty-Two Million Dollars for Republic of Tunisia’s Sidi Saleh Multi-Purpose Project on May 26, 1977

eWorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 77/111 WORLD BANK LENDS $42 MILLION FOR REPUBLIC OF TUNISIA'S SIDI SALEH - - - - - -- - - - - - - - - - - - - - MU LTl - PU RP OS E PROJECT - - - - - - - - - - - -- - - - -- The World Bank has approved a loan of $42 mil lion to the Republic of Tunisia to help finance the Sidi Salem Multipurpose Project which will implement the first phase of an overall water development plan for Northern Tunisia. Tunisia's agricultural development has been hampered by a scarcity of water. Much of the country is arid or semi-arid and agriculture is highly dependent on rainfall. One of the major objectives of Tunisia's Fifth Development· Plan is to achieve self-sufficiency in food production. The benefits of the project include increased agricultural production; higher incomes and employment; improvement in Tunisia's balance of pay- ments; an increased supply of potable and industrial water to major urban areas of Northern Tunisia and protection against floods in the Medjerda r i ve r va 1 l ey. The project eon1i1t1 of the construction of the Sidi Salem dam/reservoir, • a hydropc,.-.,er plant and associated works; an interconnection canal from the Medjerda River to the Cap Bon Peninsula; irrigation, drainage, road networks and land preparation for two new public irrigation areas; re- habilitation works for citrus plantations including a tertiary underground distribution network as well as buildings and equipment to operate the project. The Government of Tunisia has obtained loans from the People's Re- public of China for the equivalent of $54 million, and from Iran for the equivalent of $15 mil lion, to assist in financing the interconnection canal and the Sidi Salem Dam, respectively. The Federal Republic of Germany, through Kreditanstalt fuer Wiederaufbau, is expected to participate in financing the Sidi Salem Dam with a loan of Deutsche Mark 70 million. The Government of Tunisia is also in touch with other sources concerning their participation in financing the project. The loan wil 1 have a term of 20 years, including 3! years' grace with an interest of 8.2 percent per annum. NOTE: Money figures are expressed in U.S. dollar equivalents . • FORM NO. 1121 (5-76) T E C HN I CA L D A T A PROJECT: COUNTRY: TOTAL COST: Sidi Salem Multipurpose Project Republic of Tunisia $386 mi 11 ion • BANK FI NANC I NG: $42 mi 11 ion OTHER FINANCING: The Government of Tunisia has obtained loans from the People's Republic of China for the equivalent of $54 mill ion, and from Iran for the equivalent of $15 million, to assist in financing the interconnection canal and the Sidi Salem Dam, respectively. The Federal Republic of Germany, through Kreditan- stalt fur· Wiederaufbau, is expected to participate in financing the Sidi Salem Dam with a loan of Deutsche Mark 70 mil lion. The Government of Tunisia is also in touch \.'lith other sources concerning their participation in financing the project. IMPLEMENTING ORGANIZATION: The project wil 1 be executed by a large number of Tunisian agencies. Further details on the individual components may be obtained from the Ministry of Planning, (1, rue de Beja, Tunis, Tunisia)which will provide the secretadat ·for the Project Coordination Corrmittee. PROJECT DESCRIPTION: The project will construct a dam/reservoir at Sidi Salem, including a hydro-power plant and other associated works; an interconnection canal; irrigation, drainage, road networks and land preparation from two major irrigation areas; rehabilitation works for citrus plantations, and buildings. and equipment to operate the project· PROCUREMENT: Of the 15 major contracts 12 will be contracted under inter- national competitive bidding in accordance with the Bank's Procurement Guidelines. ·rhree contracts wi 11 be tend~red locally according to Government competitive bidding procedures satisfactory to the Bank. Small equipment will be purchased through normal, local competitive bidding. Domestic manufacturers wi 11 be given a 15~ margin of preference or applicable customs duty, whichever is 1<:Mer. CONSULTANTS: The Bank loan will finance consulting firms to assist in preparation of final design and bid documents, bid evaluation, construction supervision, and for the preparation of further studies on the water resources of the Medjerda River Basin and related questions. ECONOMIC RATE OF RETURN: 11 % ESTIMATED COMPLETION DATE: 1983 • - 0 -