Announcement of Eighteen Million Dollars Financing for the Tunis District Urban Planning and Public Transport Project in Tunisia on August 9, 1973

INTERNATIONAL BANI{ FOR f RECONSTRUCTION AND DEVELOPMENT • IN'rERNATIONAL DEVELOPMI~NT ASSOCIA'".rION 1818 H STREET, NW. WASHINGTON D.C.20433 TELEPHONE EXECUTIVE 3-6360 Bank Press Release No. 73/59 Subject: $18 million financing for the Tunis IDA Press Release No. 73/71 District Urban Planning and Public August 9, 1973 Transport Project in Tunisia The World Bank and its affiliate, the International Development Association, have approved financing totaling $18 million for a project that will assist plan- ning for orderly urban growth and improve public transport facilities in the Tunis metropolitan area. Both the Bank loan of $11 million and the IDA credit of $7 mil- lion are being made to the Republic of Tunisia. Tunisia's population is concentrated principally in Tunis, the capital. Metropolitan Tunis currently has a population of 900,000, and this is expected to reach 1.2 million by 1976. A large part of the economic activity and employ- ment in the country is also centered in this area. The Government has recently ~ established a regional entity, the Tunis District, to coordinate metropolitan public investment planning and development. Under the project, public transport services in the Tunis metropolitan area will be improved and the District will be provided with technical assistance to aid it in. carrying out a program of urban studies and in training its personnel. The assistance to the Tunis District will be jointly financed by the Bank loan and IDA credit and by a grant from the United Nations Development Programme (UNDP.). The Bank will serve as executing agency for the UNDP project. Low and middle income earners in the area will be the principal direct beneficiaries from the improvement and expansion of the transport system. Up to 210 buses, including an initial stock of spare parts, will be purchased tu ,, I' modernize the urban bus fleet of the Societe Nationale des Transports (SNT), a State-owned enterprise, and to help meet its needs for new vehicles. SNT's suburban railway, serving the Tunis-La Goulette-La Marsa northeast corridor, will be modernized with the purchase of 26 electric railway cars, signalling equipment and other materials. A new bus maintenance depot for SNT will also be constructed • and equipped . Note: Money figures are expressed in US dollar equivalents /more Bank P.R. No. 73/59 - IDA P.R. No. 73/71 -- Tunisia -- urban planning & public t'port ' - 2 - Also included in the project are improvement of key traffic intersections and purchase and installation of related signalling equipment for the Municipality • of Tunis, and consultant services for technical assistance to the Government, to SNT, and to the Municipality. The consultants to the Government will carry out a study of the urban development options of Sfax, Tunisia's second largest city. The $28.6 million project is expected to be completed by the end of June 1976. Although the largest share of World Bank Group lending in Tunisia has been for transport, the project is the first operation which specifically emphasizes urban transport. The World Bank loan of $11 million is for a term of 22 years, including four years of grace, with interest at 7!(/o per annum. The IDA credit is for 50 years, with 10 years of grace; it is interest free, but carries a service charge of 3/4 of 1% a year to cover IDA's administrative expenses. Of the total proceeds of the Bank loan and IDA credit totaling $18 million, about $16.5 million will be relent by the Republic of Tunisia to SNT for 22 years, including four years of grace, with interest at 7!(!., a year. Munic~pality of Tunis. The balance of about $1.5 million will be used partly to finance technical assistance and partly to finance equipment and civil works for the traffic improvement program of the • - 0 - • I • August 9, 1973 TECHNICAL DATA PROJECT: Tunis District Urban Planning and Public Transport COUNTRY: Tunisia TOTAL COST: $28.6 million BAl.~K/IDA FINANCING: Bank loan: $11 million, 22 years, four years of grace, 7!(% interest per annum. IDA credit: $7 million, 50 years, 10 years of grace, interest free except for a service charge of 3/4 of 1% to cover IDA's administrative expenses. OTHER FINANCING: Goverrunent of Tunisia; Tunisian banks; United Nations • Development Programme . IMPLEMENTING ORGANIZATION: District de Tunis, Hotel de Ville, Avenue de Carthage, Tunis, (Attn: Mr .. Skhiri), will carry out the urban studies program. Societe Nationale des Transports (SNT), B.P. 660, Tunis, will execute the bus and rail improvement program. Municipalite de Tunis, rue d'Athens, Tunis, will be responsible for executing the traffic engineering and control measures. PROJECT DESCRIPTION: Provision of up to 210 buses to SNT; purchase of 26 electric railway cars and related equipment for suburban railway line; construction and equipment of a bus maintenance depot; improvement of key traffic intersections and purchase an<l installation of related signalling equipment; and consultant services for technical assistanceo PROCUREMENT: Suburban railway equipment through international competitive bid- ding; Buses, international competitive bidding for imported chassis and mechanical sub-assemblies, through the local manufacturer, Societe Tunisienne d'Industrie Automobile (STIA), if STIA's firm bid does not exceed an international reference price agreed with the Bank by more than 15%, or, for finished buses, through international competitive bidding; Bus Main- tenance Depot through international competitive bidding; Traffic Engineering Improvements - signalling equipment from existing suppliers through normal commercial channels and construction works in small units • under Tunisian Government regulations. Domestic equipment manufacturers will receive a preference margin of 15%, or the applicable customs duties, whichever is lower. :fote: Money figures are expressed in US dollar equivalents. /more  - 2 - • CONSULTANTS: To be selected for: SNT: urban bus operations, urban bus maintenance, suburban railway operations and maintenance; accounting and managerial control procedures; • procurement of buses, railway equipment and other project items. Tunis District: Team of seven econanists, engineers and planners. Municipality of Tunis: Traffic engineering. Government of Tunisia: Urban development of Sfax, Tunisia's second largest city. ESTIMATED COMPLETION DATE: End of June 1976. - 0 ~ • •