Tunisia - Rural Water Supply Development (Seventh Water Supply) Project

Document of The World Bank FOR OMCUL USE ONLY Rh t N6. P-3686-TUN REPORT AND rEoNNEATION OF THE PRESIDENT OF THE INTrMIoNALA FOR REOOSTRCTION AND DEVELOPMENT TO THE EXCrUTIVE DICTORS Of A PROPOSED LOAN IN THE AMOUNT EQUIVALENT TO 09*50.0 MILLION TO THEE PEPUBLIC OF TUNISIA FOR A SEVENTH WTER SUPPLY PROECT November 18, 1983 lMOI doemusug bm a mesdelmi dIsib&Ru id may be used by redfpkemis I I.y lb de pfsaam of thkofficmia dudmlb. cinimu -, -' absrwlu be ihelmi wihest Would Buk ahdmixadIm.  CURRENCY EQUIVALENTS Currency Unit - Tunisian Dinar (TD) The exchange rate of the Tunisian Dinar is floating. The rate used in the Staff Appraisal Report, which approximates the rate as of April 15, 1983, is: US $1.00 TDO.646 TDI.0O0 US $1.55 Fiscal Year January 1 - December 31 GLOSSARY OF ACRONYMS DGR = Rural Construction Directorate (Direction du Gdnie Rural) DSSB = Basic Health Directorate (Direction des Soins de Sante de Base) EW = Kreditanstalt fur Wiederaufbau NA= Ministry of Agriculture MOPH Ministry of Public Health SONEDE National Water Authority (Socift6 Nationale d'Exploitation et de Distribution des Eawz)  FOR OFFICIAL USE ONLY REPUBLIC OF TUNISIA SEVENTH WATER SUPPLY PROJECT LOAN AND PROJECT SUNMARY Borrower: Republic of Tunisia * Beneficiary: Soci6te Nationale d'Exploitation et de Distribution des Eaux (SONEDE) Amount: US t50.0 million equivalent, including a capitalized front-end fee Terms: 17 years, including 4 years of grace, at the standard variable interest rate Onlending: The Government would onlend US$5.5 million of the Bank loan to SONEDE at 10.5 percent interest for 17 years, including 4 years of grace. SONEDE would bear the foreign exchange risk. Project Description; The proposed project would extend public water supply services to a larger share of the rural population, ensure adequate operation and maintenance of these rural water systems, and build up SONEDE's capacity to provide services in rural areas. It consists of: the installation of piped water supply systems in about 600 rural villages, and where necessary the recalibration of transmission mains; the provision of drilling, operating and maintenance equipment; research on, and design and testing of, new low-cost materials and equipment for rural water supply systems; financial and organizational studies; provision of credit facilities to domestic customers in rural areas to help finance the installation cost of house connections; and a health education program. Benefits of the project would accrue mostly to low-income groups, namely about 350,000 rural villagers, of whom 40 percent would have house connections (standpipes in their yards) and the remainder would be served at public taps. The risk that such a large number of rural subprojects would be difficult to execute, operate and maintain would be lessened by SONEDE's creation of a special unit for rural works and the proximity of almost all the villages to SONEDE's already existing operating centers. This document has a rescteicd distr bution and nay be used by reapicats only in the peffw=mnsc of their of}rwia duties. Its contents may not otherwrise be disclosed without World Bank authorezation  - ii - Estimated Project Costs: Local Foreign Total u- US SMilion