Announcement of Twenty-Eight Million US Dollars Loan to Tunisia for the First Urban Sewerage Project on January 30, 1975

WORLD BANK 1818 H STREET. N.W., WASHINGTON D. C. 20433 TELEPHONE: EXECUTIVE 3-6360 Bank News Release No. 75/11 January 30, 1975 $28 MILLION LOAN TO TUNISIA FOR 11IE FIRST URBAN SEWERAGE PROJECT The World Bank has approved a $28 million loan to help finance a first urban sewerage project in Tunisia. The major purposes of the project are to support the establishment of a national sewerage authority as an effective operating agency, and to improve sewerage facilities in the Greater Tunis area. Project works in the Tunis area include additions to the trunk sewer system; renovation of one treatment plant and the con- struction of two new treatment plants; renovation and renewal of existing sewers and extensions to serve built-up areas presently without service; and construction of storm-water evacuation chann~ls, with associated pumping stations, in the Lake of Tunis. The project is expected to facilitate the planning and ,development of the Lake of Tunis area by eliminating the unpleasant odors. The project will help tourism by protecting beaches adjacent to the Gulf of Tunis; it will also lead to improvements in public health, and, as a result of the elimination of the unpleasant odor of the Lake of Tunis, in the quality of life for residents of the Tunisian national capital. The loan will be for a term of 25 years, including 4 years of grace, with interest at 8% per annum. • Note: Money figures are 2xpressed in US dollar equivalents •  T E CHNI CAL DAT A • PROJECT: First Urban Sewerage Project COUNTRY: Tunisia TOTAL COST: $~6 million BANK FINANCING: $28 million, for 25 years, including 4 years of grace, with interest at 8% per annum. OTHER FINANCING: The Government of Tunisia will provide an additional $28 million in foreign exchange to complete the foreign financing required for the project. The local currency requirements will be provided by internal cash generation, customer contributions to sewerage investments, and Government contribution. IMPLEMENTING ORGANIZATIONS: The National Sewerage Authority (ONAS), 8, rue du Senegal, Tunis, Tunisia. PROJECT DESCRIPTION: '.L'he project includes additional master sewers, renewal and extension of an existing treatment plant and construction of two additional plants, extension and renewal of existing sewers, technical ass~stance and· equipment to aid in the establishment of ONAS; and consultant services for feasibility studies for sewerage projects included in the Fifth Plan (1977- 1980), for a construction industry study and training program, and for land use studies by the Tunis District. PROCUREMENT: All major contracts for the supply of equipment, pipes, anc civil works, will be awarded after international competitive bidding in accordance with the Bank's procurement guidelines. A margin of preference for local equipment manufacturers of 15%, or the applicable customs duties, whichever is lower, will be applied in the evaluation of bids. The contract covering the renovation and increase in capacity of the existing treatment plant will be negotiated with the original supplier. Subject to an aggregate maximum of D 250,000 ($590,000)~ nu 2~r contracts for maintenance and supply of equipment costing less than D 25,000 ($59,000) will be awarded on the basis of competitive bidding advertised locally and in accordance with ONAS' bidding procedures, which are satisfactory to the Bank. Tender documents for the supply of equipment and pipes whose value exceeds D20,000 ($47,000) and for civil works whose value exceeds D 100,000 ($235,000) will be submitted to the Bank for approval before bids are invited. Retroactive fin.ancing for ONAS of up to $400,000 is envisaged for the foreign exchange cost of consultant services, for minor civil works contracts and for the purchase of sewer maintenance eqn;ipment. CONSULTANTS: The two groups of consultants who prepared the f@adhi1Uy ~tudiM £ot thfa ptojeet ha~e beltt rettitted by ONAS to prepare bidding documents, to supervise construction, and to assist in hiring, training, and personnel administration, as well a.sin accounting • and standard engineering practices. Additional consultant services will be required by ONAS, for the feasibility studies for sewerage projects included in the Fifth Plan; by the Ministry 0f ~'!'d!;'rn,.aYi~, for the construction industry study and training program; and by the Tunis District, for the land use studies. ESTIMATED COMPLETION DATE: 1979