Announcement of Sweden and World Bank Lend Twenty Million US Dollars for Water Supply in Tunisia on January 17, 1969

• 1818 H.STREET, N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank Press Release No. 69/4 Subject: Sweden and World Bank lend January 17, 1969 $20 million for water supply in Tunisia Tunisia will carry out a national water supply development program with the assistance of a World Ba~ loan of $15 million and a credit equivalent to<~S mil- lion from Sweden. The progr.am will increase.and improve the supply of water in th~ t:wo most heavily populated and economically important regions of Tunisia -- Tunis -ind Che Sahel (Sousse), and also in the coastal ·towns of Nabeul and Hammamet which are becoming inc~e~singiy impo:rtant ·for. tourism, Tunisia's fastest growing industrv. - ..... 1 The Bank loan was made to the Tunisian water supply authority, Societe Nationale d'Exploitation et d~ Distribution des Eaux (SONEDE), and guaranteed ky • the Republic of Tunisi~. It is for a term of 25 years},i\including .5-1/2 years of grace, with interest at 6-1/2%. Chemical Bank New York Trust Company and the fol·- lowing three Philadelphia banks, Girard .Trust Bank, The Fidelity Bank, and The First Pennsylvania Banking and Trust Company, have ~greed to participate in the loan for a total of $300,000 • • The, Swedish credit to the Republic of Tunisia is for a term of. 50 years, ~ith 10 years o~ grace, and is free of interest; a charge of 3/4 of 1% will be made to cover admirtistrative costs. Water is very scarce throughout Tunisia. Rainfall is meager in most areas and the situation is made worse by the salinization of surface wa.ters as they flow toward the sea. The salt content of most ground. water makes if unfit for human consumption an4 difficult to use even for irrigalion. Most fresh water • \) is found in mountains situated at considerable distances from the sea, requiring expensive dams and long conduits to serve the population centers which are mainly along the coast. /more  Bank P.R. No. ,69/4 - Tunisia - Wacer supply ·~ • ',) - 2 - ,; To improve the water supply throughout the country, the Government, with the assi.stance of consultants and several World Bank missions, has drawn up a cfflllp'l"e- hensive development program c.-~vcring the years 1968-'73. SONEDE was established in August 1968 as an independent public agency responsible for potable water supply., SONEDE haFJ retained consultants to assist in executing the dev,.lopment program ar-,rl in lllrganizational and management matters. .</: · 1 The Bank and Swedish financing will be used' for high priot:ity works wi,thin th._:.. progt'am. These works will red\Jce shc,rtages and satisfy growing ,~~ter requirements in 101 cities and villages in the no~thern and eastern parts of Tunisia. Improved financial policies new management techniques, and better sector planning asso- 1 , ciatecl~-wJth the pm ject will alsn help to ensure efficient use of scarce financial resout,;-~. ',/ in the futur~. After 1972, capital c9htributions to the wat er supply 1 Ggctor ,''which have been a burden on' the national' budget in the past, shr,uld no longer be needed. T~e Tunis project provides for the constructinn of a 76-mile pipeline from the Oued Kasseb Dam to the outskirts of Tunis. This· will almost double the suppl} -·u[-wa:tt:r--t.u--u1..i::aL.tL-·-T1.nd.~ and to 34 oth'er centers along the pipeline aJJd.• wil_L. satisfy demand until· about 1982. The distribution system of Tunis will be ex- 1 , tended and reconditioned. Some minor works to imptove existing ground water ~up.;;c> p_lies will also be included. The S·ahel project includes the development of ground water sources, a second • pipeline supplying the coastal area, construction of sections of tr~nk pipelines serving 63 cities and municipalities, and rehabilitation and extension of distribu- tion systems in s~usse, Kalaa Kebira, and Msaken. These works should meet the de~and of this area until 1978. The Nabeul-Hammamet project is designed to meet the immediate needs of a fast:~ 1eveloping resort area. It consists of new wells, reservoirs, and an interconnec- !:ion between the distributinn systems of the two cities. ,; Metering equipment will be installed in all systems to improve efficiencyfof operations and also to provide data on which to prepare for future expansion. The total cost of the proj~ct, which also in~ludes consultants' fees, is est~- mated at the equivalent of $32.8 million. The Bank and Swedish loans will provid.-."? $20 million and SONEDE will cover the remaining costs from its own resources and: government contributions. Contracts for construction and procurement of equipment will be let on the basis of international competitive bidding. - 0 - •