Tunisia - Greater Tunis Sewerage Project (formerly listed as Fourth Urban Sewerage Project)

Report No. PIC1033 Project Name Tunisia-Greater Tunis Sewerage Project (@#) Region Middle East and North Africa Sector Water Supply & Sanitation Project ID Number TNPA5731 Borrower Republic of Tunisia Implementing Agency Office National de l'Assainissement (ONAS) 32, rue de la Monnaie Tunis, Tunisia Contact Mr. A. Gannoun President-directeur general, ONAS Phone: 011.216.1.343.810 Fax: 011.216.1.350.411 Date this PID April 1996 Project Appraisal Date October 1996 Project Board Date May 1997 1. Background: Tunisia is located at the southern rim of the Mediterranean Sea and has a population of approximately 8.8 million. It is a highly urbanized country with about 60 percent of its population living in urban areas. Rapidly increasing population in these areas, expanding tourism, and growing industry have begun to exert intensive pressure on Tunisia's environment. The Government is aware that in the long run, Tunisia's development will be determined by how well it protects and manages the environment and its scarce natural resources. One of the highest priorities of its economic plan is to develop and protect the country's scarce water resources. The overall objective of the plan is to promote sustainable economic development by maximizing the efficient use of water resources, reducing pollution, and improving public health. The sewerage sector is one of the keys to attaining these environmentally sound economic objectives. A fully developed capacity to treat all waste water would not only abate urban pollution caused by the uncontrolled discharge of urban and industrial waste and preserve the quality of water resources, especially coastal waters; it would also contribute to water resource conservation by making it possible to reuse treated water for irrigation. 2. In 1975, with World Bank assistance, the Government of Tunisia created l'Office National d'Assainissement (ONAS), the national institution in charge of sewage sector management, including waste water collection, treatment, and disposal in urban agglomerations and industrial and tourism zones. In 1993, its mandate was consolidated under the newly created (in 1991) Ministry of Environment and Land Planning, with increased responsibility for sewerage operations. ONAS has also been expanded into an institution responsible for protecting the hydrological environment, in close cooperation with the National Environmental Protection Agency (ANPE, established in 1989), which is responsible for overall environmental monitoring and enforcement.  3. Responsibility for maintaining the water supply systems in urban areas and large rural centers is assigned to Societe Nationale d'Exploitation et de Distribution d'Eau (SONEDE), the national water supply authority, which is an autonomous public entity overseen by the Ministry of Agriculture. Planning, design, and construction of water supply works in small villages is the responsibility of the Direction du Genie Rural (DGR), a department of the Ministry of Agriculture. 4. One of the main objectives of the Government's current water development strategy is to improve the quality of water provided to consumers and to preserve the environment by reducing water pollution caused by domestic, industrial, and agricultural uses. The World Bank is supporting the Government's efforts and has outlined its parallel strategy in its Water Policy Paper and the MENA Water Management Strategy. The proposed project will complement Bank involvement in the sector, especially the Water Supply and Sewerage Project, by: (a) enhancing investments in Greater Tunis; (b) promoting environmentally sound sewerage operations, particularly the reuse of treated wastewater; and (c) improving the financial and technical capacity of ONAS. 5. Project Objectives and Description: The proposed project will assist the Government in: (a) increasing service levels for urban sewerage up to levels comparable to potable water service; (b) reducing urban and coastal pollution; (c) promoting efficient reuse of effluent from sewage treatment plants for agricultural purposes; (d) improving ONAS' cost recovery and financial capacity, with the long-term objective of making it more autonomous and self financing; (e) introducing appropriate new sewage treatment technology; and (f) strengthening ONAS' capacity in the areas of management, planning, and environmental monitoring. The project is part of the Government's Ninth Development Plan, covering the period 1997-2001. It includes the following investment components: (a) construction of a Waste Water Treatment Plant (WWTP) for the western basin of Tunis; (b) expansion and rehabilitation of the Sud Meliane WWTP in the southern basin of Tunis; (c) reorganization, rehabilitation, and strengthening of the Greater Tunis sewer network; and (d) pilot projects for waste water recycling, use of new technologies, technical assistance and studies, and acquisition of environmental monitoring and management equipment and tools. 6. Project Financing: Project cost is estimated at US$144 million. A Bank loan would finance the foreign exchange part of the project (about 60 percent of its cost). The Government and ONAS would finance the remaining 40 percent. 7. Project Preparation: Consultants have prepared the feasibility study, the environmental assessment of the sector and of the site- specific subprojects, and the economic and financial studies. These studies, which were financed under the Japanese PHRD Fund and managed by the Bank, were completed at the end of 1995. 8. Project Implementation: The project would be implemented over 6 to 7 years. ONAS, who has a substantial experience in implementing similar projects, will be in charge of execution. 9. Lessons Learned from Previous Bank Operations: The Second and - 2-  Third Sewerage Projects in Tunisia were successfully completed in 1988 and 1993, respectively. These projects involved the construction of sewerage collection systems, treatment plants, and related infrastructure, as well as soft components to further develop ONAS' managerial, technical, and financial capabilities. The projects also contributed to controlling pollution in the northern area of Lake Tunis. Both sewerage projects were successfully implemented, which enabled ONAS to establish strong institutional arrangements and to significantly expand sewerage services in the country. 10.. Rationale for Bank Involvement: The Government has committed itself to implementing a long-term strategy to satisfy the country's water needs beyond the year 2000. Promoting the reuse of effluent from sewage treatment plants for agricultural purposes is an integral part of the Government's strategy, which has been devised within a comprehensive policy and institutional framework that is in line with the Bank's Water Policy Paper, the MENA Water Strategy, and country assistance strategy. The Bank's assistance strategy for Tunisia is to support the Government's efforts to strengthen the management and conservation of its water resources; the proposed project is the result of a continuing dialogue between the Government and the Bank. 11. Environmental Aspects: The project is expected to help improve the environment because it will: (a) increase waste water collection and treatment capacity in rapidly growing urban areas of Greater Tunis and use environmentally safe and optimized schemes of treatment, disposal, and water reuse; (b) reduce pollution discharge from polluting industries through industrial pretreatment; and (c) strengthen the national environmental monitoring capability, to effectively preserve water quality. Taking into consideration Bank and Tunisian regulations on environmental impact assessments, the project is classified category A. 12. Benefits: The urban population will directly benefit from better sewerage services and the resulting cleaner and more pleasant environment. The project will improve health conditions of population in the low-income areas of Greater Tunis who are not yet served by the sewerage system. The reduction in urban and coastal pollution will help improve conservation of natural resources in the area and facilitate development of the tourism industry. Furthermore, the institutional strengthening of ONAS will enhance sector development across the country. Contact Point: Public Information Center The World Bank 1818 H Street N.W. Washington D.C. 20433 Telephone No.: (202)458-5454 Fax No.: (202)522-1500 Note: This is information on an evolving project. Certain components may not necessarily be included in the final project. -3 -