Announcement of World Bank to Lend Nineteen Million Dollars to Tunisia for Urban Development on May 24, 1979

. 'FOR IMMEDIATE Rf'lEASE . •world Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephon~: (202) 477-1234 DANK NEWS RELEASE NO. 79/92 May 24, 1979 WORLD BANK TO LEND $19 MILLION TO TUNISIA FOR URBAN DEVELOPMENT.~ The World Bank has announced a .loan of $19 million to aid the Republic of Tunisia's efforts to improve urban housing and social services in low- income areas. The project will center in Tunisia's two largest cities, Tunis and Sfax, where fi~e low-'income settlements will benefit f.rom the development of about 2,000 new housing plots, home improvement loans for some 4,000 households, upgrading of roads, extension of water supply and sewerage networks, installation of street lighting, and·construction of primary schools, health centers and markets. The improvements are considered a priority because of the low level of existing infrastructure and social • services . In Sfax, the development of 1,900 housing plots complete with infra- structure and social services is expected to benefit 1,800 low-income families and 100 small enterprises. A small-business assistance program will create some 1,000 jobs for the seriously unemployed urban populace, and four schools will be built to accommodate almost 10,000 students on double shift. Greater Tunis will benefit from improved solid waste collection and disposal, and in Sfax, low-cost traffic improvements will be implemented to relleve congestion. Special lanes will be provided for bicycles, mopeds and buses, improved signalling equipment will be installed at 10 major intersections, and a one-way street network will be introduced. Technical assistance will also be provided as part of the $45 million project to help create the institutional framework needed to implement this project and to develop and implement other similar projects in Tunisia. The Kingdom of the Netherlands has provided $2.4 million for this project; the Government of Tunisia and the Municipalities of Tunis and Sfax are contributing $16. 1 million, $4.9 million and $2 million, respec- tively. The Societe Tunisienne de Banque (STB) is providing an additional $600,000 for the small business assista,~ce program. • The Bank loan is for 17 years, including 4 years of grace, with interest at 7.9 percent per annum . NOTE: Money ftgures are expressed in U.S. dollar equivalents. OAMN0.1121 (5-76) T E C HN I CA L D A T A PROJECT: COUNTRY: Second Urban Development Republic of Tunisia • TOTAL COST: $45 million BANK FINANCING: $19 million, for a term of 17 years, including 4 years of grace, with interest at 7.9% per annum OTHER FINANCING: Dutch bilateral aid, $2.4 mill ion; Government of Tunisia, $16. 1 mi 11 ion; Muni c i pa 1 i ty of Tunis, $4.9 million; Municipality of Sfax, $2 mill ion; Societe Tunisienne de Banque (STB), $600,000 IMPLEMENTING ORGANIZATION: Municipality of Tunis, Avenue de Carthage, Tunis, Tunisie; Municipality of Sfax, Avenue Habib Bourguiba, ~fax, Tunisie; District of Tunis, 10, rue d 1 Autriche, .n is, Tunis i e, Te 1ex: DI STN 12464 TN. PROJECT DESCRIP: 0N: It will be implemented in Tunisia's two largest cities, Tunis and Sfax, and will consist of: a) comprehensive upgrading of housing infrastructure, and social services in five low-income settle- ments; b) comprehensive development of some 1,800 housing plots for l0w-income families in Sfax; c) construction of schools in low-ir~c-f)me areas; d) introduction • of a s ma l l bus i nes s as s i s tan c e p ro g ram ; e) i mp roved '. 1 d was t e co l 1e ct i on and disposal; f) traffic improvements; and g) technical assistance for project imple- mentation, institution building and studies. PROCUREMENT: Contracts for civil works totalling $28.9 mill ion, and for equipment and vehicles totalling $900,000, will be awarded through international competitive bidding. Of these, civil works contracts for water, sewerage and electricity works ($13.7 mill ion) will be awarded by the national companies responsible for these utilities in accordance with specifications to be outlined in separate agreements with the two Municipalities, to be signed by September 1979, Local manufacturers will be allowed a 15% preference margin of the c.i .f. price, or the customs duty, whichever is lower. Contracts for civil works of $350,000 or less, and for equipment and vehicles of $75,000 or less, will be awarded through competitive bidding procedures advertised locally. Consultant services will be procured individually by the agencies responsible. All procure- ment will be in accordance with Bank guidelines. CONSULTANTS: Consultant services will be provided to assist the various implementing agencies in executing and monitor- ing the project a~d preparing future similar projects . . ECONOMIC RATE OF RETURN: ESTIMATED COMPLETION DATE: 28% on quantifiable components which represent 65% of totai project cost. 1982 • - 0 -