Announcement of Tunisia Receives Twelve Million Two Hundred Thousand US Dollars for Irrigation Development on December 20, 1974

• 1818 H STREET, N.W .. WASHINGTON D. C. 20433 TELEPHONE: EXE:CUTIVE 3-6360 Bank News Release No. 74/100 December 20, 1974 TUNISIA RE9EIVES $12.2 MILLION FOR IRRIGATION DEVELOPMENT A loan of $12.2 million from the World Bank will assist Tunisia's efforts to realize the full benefits from investments in the Medjerda and Nebhana irrigation sy~tems. The Medjerda and Nebhana irrigation systems date back to the 1950s. The Medjerda Valley in Northern Tunisia, has about 90,000 hectares of potentially cultivable land, of which about 40,000 hectares can be irrigated. Some 5,000 hectares in the Nebhana area can be irrigated. However, only about 11,000 hectares in Medjerda and about 1,800 hectares in Nebhana are being irrigated at present. Land tenure problems, poor maintenance, and inadequate extension, credit and • marketing support services are among the reasons for the underutilization of the irrigation facilities. The project being assisted by the Bank loan will help to close the gap between potential and actual use of irrigat,ion investments. It will provide full development of about 10,300 hectares in the Medjerda and about 2,000 hectares in the Nebhana areas. The project will contribute to higher cropping intensity, increased agricultural production, and increase farm incomes. It will benefit about 3,800 small farmers with holdings ranging from one hectare to twelve hectares. Increased farm production will help Tunisia save about $4 million in foreign exchange each year. The project is scheduled for completion in 1982 at a total estimated cost of $23.8 million. Execution of the project will be the responsibility of the Authority for Development of the Lower Medjerda Va:l.Ui~·, the Authority for the Development of Nebhana -nd the National Bank of Tunisia. The Bank loan·to the Government of Tunisia is for a term of 25 years, including 7-1/2 years of grace. It will carry interest at 8% per annum. • The Food and Agriculture Organization in the U.N. (FAO} joined the Bank in the preparation of the project. Note: Money figures are expressed in US dollar equivalents.  T E CHN I CAL • DAT A PROJECT: Irrigation Rehabilitation COUNTRY: Tunisia TOTAL COST: $23.8 million BANK FINANCING: $12.2 million, for 25 years, including 7-1/2 years of grace with interest at 8% per annum. OTHER FINANCING: Government of Tunisia IMPLEMENTING ORGANIZATION: Banque Nationale de. Tunisie, (BNT), Tunis, Tunisia; Office de la Hise en Valeu·r de la Vallee de la Nedjerda et des P!rimetres Publics Irrigu€s (ONVVH), Tunis, Tunisia; Office de Nise en Valeur de Nebhana (OMIVAH), Tunis, Tunisia. PROJECT DESCl{lPTION: In both the Nedj erda and the Nebhana areas, • the project. includes rehabilitation of existing irrigation, drainage and road networks, e~t4blishment of wind- breaks, construction of rural infrastructure, supply of equip11lent and machinery for operation and maintenance of the irrigation, drainage and road networks, on-farm development through investment and short-term credit, and consultants' services. PROCUREMENT: The civil works contracts are small and disparate, and they will not lend themselves to international competitive bidding. Except for the repl~cement of the hydraulic equipment ($0.6 million) from the sole supplier, and for livestock (at least three quotations will be received prior to awarding each contract) all equipment will be procured on the basis of international competitive bidding. In the t.waluation of bids domestic suppliers will be given a margin of preference of 15% or the applicable customs duty, whichever is lower. CONSULTANTS: Consultants will.be en1•1•d for engin•ering studies, preparation of final designs and tender documents for Medjerda and 1-.Jebhana irrigation infrastructure and for feasibility studies in Nebhana; and technical assistance in extension services, management, cooperatives, marketing, and land reform. ESTIMATED COMPLETION DATE: 1982 •