Loan No: | 689 | Interest Rate: | 2.5 % |
Beneficiary: | Ministry of Agriculture, Water Resources and Fisheries | Grace Period: | 6 years |
Project Cost: | KD 20.9 million | Maturity: | 30 years |
Amount of Loan: | KD 17.0 million | Repayment: | 49 semi-annual installments |
Date of Board Approval: | 2022-06-27 | First Installment: | 6 years following the first disbursement |
Date of Loan Agreement: | 2022-09-18 | Date of Loan Effectiveness: | - |
Objectives:
The project aims at achieving balanced regional development and reducing economic and social disparities between the residents in the project areas of South KasreinGovernorate and the residents in other Tunisian Governorates, through improving their living conditions, alleviating poverty, advancing marginalized groups in border areas, activating the economy and developing the local communities, as well as creating new job opportunities for farmers, livestock breeders and traditional craftsmen, especially women.
Description:
The project, which is expected to be completed by the end of 2027, comprises five “sub-projects” to be implemented in 5 districts in South Kasrein Governorate, namely: Sbeitla, South Kasserine, Feriana, Hassi El Ferid and Majel Bel Abbes. Each sub-project consists of a number of elements that were identified using a participatory approach by the targeted farmers and was approved by the concerned authorities and professional associations at the governorate level, taking into account the evaluation of conditions within each district in terms of natural resources, infrastructure, types of existing economic activities and the development needs of its residents. This is to be achieved through the implementation of various works to improve the utilization of agricultural lands and natural resources while ensuring their sustainability, protecting the environment and the soil threatened with erosion. In addition to improving infrastructure, increasing and supporting agricultural production, improving fodder and pastoral resources and livestock breeds, supporting income generating projects for the advancement of women and youth in rural areas, encouraging agro-industry of local agricultural produce, capacity building of local communities and beneficiaries to participate in the management of natural resources. The project also includes the technical services related to the studies, designs and the supervision of the project implementation. The project includes the following main components:
- Infrastructure Projects and Production and Services Projects:
- Water Preparation and Irrigation: This includes creating new irrigation areas and rehabilitating existing irrigation areas, with a total area of about 6,000 hectares, as well as drilling about 40 new wells in existing irrigation areas and equipping about 63 wells with pumps and power supply. It also includes supplying about 1,700 hectares with modern irrigation equipment.
- Farm Road Tracks: This includes the construction of farm tracks totaling about 140 km.
- Drinking Water Systems: This includes creating and rehabilitating about 43 drinking water systems, drilling about 31 drinking water wells, and equipping about 43 wells with pumps and power supply. It also includes the acquisition of maintenance equipment for the pumping stations, and the drilling and equipping of about 4 groundwater observation wells.
- Water and Soil Conservation Facilities: This includes the construction of terraces with a total area of about 2,700 hectares, and the construction of artificial lakes to replenish groundwater with a capacity of about 5,000 m3, as well as the construction of about 42,000 m3 of artificial gabion walls to protect the valley streams, about 190 water barriers, about 9 mountain lakes, and about 14 valley cross-ways.
- Agricultural Production: This includes the implementation of renewal and maintenance works for about 2,500 almonds, olives and other perennial trees. It also includes the planting of about 3,500 trees.
- Forest and Pastoral Preparation and Rangeland Revival: This includes the revival of rangeland in about 500 sites, the construction of terraces to protect against desertification, the construction of about 100 km of stone walls, the creation of about 90 hectares of new areas for fodder cultivation and shade trees, and helping farmers to document their land ownership, covering about 10,000 hectares, excluding payment of government fees.
- Local Agro-industry Systems: This includes the preparation of 5 units for peeling and canning pistachios and almonds, 5 units to manufacture fodder molds and organic fertilizer from crop and agricultural production waste, 5 olive presses equipped with oil tankers, and 4 units for apricot drying, with the aim of increasing their value in the value chain. This also includes capacity building by supporting cooperative companies and agricultural development groups with the provision of equipment and supplies, the implementation of about 50 training courses for administrators and farmers, and the maintenance and furnishing of the agricultural extension centers, as well as supplying a soil analysis laboratory.
- Technical Services:
This component includes the use of consultancy offices and firms to prepare the studies and engineering designs, supervise the implementation, and prepare any additional studies that would contribute to achieving the project’s objectives.
Financing:
The Arab Fund’s loan covers about 81.0% of the total project cost. The Tunisian
government will cover the remaining cost of the project and any additional cost
that may arise.