Announcement of World Bank Approves Twenty-Five Million Dollars for Tunisian Water Supply Project on May 21, 1979

. FOR IMMEDIATE REl-EAS~, · ~World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234 BANK NEWS RELEASl NO. 79/89 May 21 , 1979 WORLD BANK APPROVES $25 MILLION FOR TUNISIAN WATER SUPPLY PROJECT The World Bank has approved a $25 million loan to the Republic of Tunisia to expand and improve access to piped water for some 600,000 people in selected urban and rural areas. The loan is part of a $72 million financing package, of which $7.7 mill ion will be financed by medium-term commercial credits. The remain- i"·~y $39.3 mi 11 ion wi 11 come from the borrowers of the Bank loan, the S0cietf Nationale d'Exploitation et de Distribution des Eaux--SONEDE (NdtiorMl Water Production and Dist:rViH.1.::i1.1n). The project, which will support SONEDE s investment program during the second half of the current flv0~year de~elopment plan, consists of • the expansion and improvement of pr~mary water distribution systems in 10 medium and small towns and provision of w~ter supply services in about 40 rural centers. The present distribution networks will also be extended, water meters will be provided, and SONEDE's long-term national water supply program will be reviewed. The increased access to piped water, expected from the project, will improve the sanitary and living conditions in many low-income areas throughout the country. It is expected that 1,400 temporary jobs will be created, of which 150 may become permanent. Tunisia currently has an unemployment rate of about 13%, not including the high rate of hidden unemployment in the agricultural sector. The loan will be for 17 years, including four years of grace, with interest at 7.9% per annum. NOTE: Money figures are expressed in U.S. dollar equivalents . • FOR.M NO. 1121 (5-76) T E C HN I CA L DA TA PROJECT: Fifth Water Supply COUNTRY: Republic of Tunisia TOTAL COST: $72 mi 11 ion Bank FINANCING: $25 million, for a term of 17 years, including four years of grace, with interest at 7.9% per annum OTHER FINANCING: Societe Nationale d'Exploitation et de Distribution des Eaux (SGNEDE), $39.3 mill ion External medium-term commercial credits, $7.7 mill ion IMPLEMENTING ORGANIZATION: Societ€ Nationale d'Exploitation et de Distribution des Eaux (SONEDE) 23,.Rue J. Nehru Tunis, Tunisia TELEX: 12262 SONEDE CABLE: SONEDE, TunJs PROJECT DESCRIPTION: It will a) expand and improve primary distribution systems in about 10 intermediate towns; b) provide water supply services in about 40 rural centers; c) extend the distribution net- works to connect about 96,000 new customers (about 600,000 people); d) supply water meters; and e) review SONEDE's national water supply plan to restate its objectives and establish realistic policies for the design, financing, construe- • tion and operation of water supply systems in Tunisia. PROCUREMENT: Contracts for civil works, especially equipment and pipes, will be grouped together as much as possible to attract large and small contractors and speed up the procurement process. Contracts for goods estimated at more than $150,000 and civil works over $550,000 will be awarded through international competitive bidding in accordance with Bank guidelines. Contracts for less than these amounts up to an aggregate $3 million will be awarded through local competitive bidding in accordance with SONEDE procurement procedures acceptable to the Bank. A margin of preference amounting to 15% of the c. i.f. price or the actual customs duties (whichever is lower), will be allowed for equipment and pipes manufactured in Tunisia. Foreign suppliers are expected to win the contracts for equipment, water meters and two thirds of the pipe supply, while the remainder of the pipe supply and the civil works contracts should go to local bidders. ECONOMIC RATE OF RETURN: Over 8% ESTIMATED COMPLETION DATE: 1981 - 0 - •