Republic of Tunisia

Integrated Development Program (Third Phase)
Loan No: 655 Interest Rate: 2.5 %
Beneficiary: Regional Development General Commissariat Grace Period: 7 years
Project Cost: KD 105.0 million Maturity: 30 years
Amount of Loan: KD 50.0 million Repayment: 47 semi-annual installments
Date of Board Approval: 2018-09-04 First Installment: 7 years following the first disbursement
Date of Loan Agreement: 2018-04-10 Date of Loan Effectiveness: -

Objectives:

The program aims at contributing to the reduction of unemployment, the alleviation of poverty, and the improvement of living and health conditions of the population in the less developed regions of Tunisia, through the implementation of a number of projects. These projects will provide new job opportunities for small farmers, craftsmen, skilled professionals, and holders of higher education and vocational training degrees. The program also aims at increasing productivity, developing infrastructure and improving public facility services, in order to achieve a balanced regional development and alleviate economic and social disparities among the population by stimulating economic activity and community development.

Description:

The program is based on a set of integrated development plans in 100 regions spread over all provinces of the country. The program, which is expected to be completed by the middle of 2023, includes the implementation of projects to develop infrastructure, increase productivity and improve public facility services, along with several individual projects in different areas covering agriculture, small business and traditional industries. The program also includes the provision of necessary technical services to implement these projects, as well as managing their implementation. The program consists of the following main components:

  1. Infrastructure, Productivity, and Utilities Projects:This includes the following:
    1. Municipal Roads and Rural Tracks:This includes all civil, structural and complementary works necessary to construct and pave a large number of municipal roads and rural tracks, with a total length of about 975 km and widths ranging between 5 and 10 m.
    2. Drinking Water and Sanitation:This includes the supply of drinking water to about 11500 families (58 thousand inhabitants), through the construction of main and secondary pipeline networks and their accessories. It also includes the provision of sanitation services to a number of communities, by laying pipelines with a total length of about 75 km.
    3. Public Lighting:This includes all necessary works to construct transmission lines, and supply and install transformers and all necessary electric equipment for about 5400 public lighting poles for a number of municipal roads, and residential and commercial areas.
    4. Irrigation:This includes the development of about 3200 hectares of agricultural land for irrigation through the drilling and equipping of ground water wells, laying of main and secondary pipeline networks, and accessories to transport and distribute water to farms.
    5. Industrial and Craft Zones, Markets and Specialized Centers:This includes the creation of 3 industrial zones, 34 industrial shops, 35 craft zones, 64 local markets, 13 centers for the collection of agricultural products, 12 work and service centers, 48 centers for marketing and product promotion, in addition to 12 municipal slaughter houses.
    6. Health, Social and Cultural Facilities:This consists of the construction, development and furnishing of a number of public facilities, including 52 primary health centers, 42 clubs and youth centers, 17 public libraries and cultural centers, 17 clubs and children centers, and 25 sports halls, as well as the rehabilitation of about 89 sports grounds and 50 parks and green areas.
  2. Individual Productive Projects:This includes the implementation of about 12400 individual projects for small farmers, craftsmen, skilled professionals and holders of higher education and vocational training degrees, in order to provide new job opportunities for the beneficiaries of these projects, increase their income and improve their living conditions.
  3. Technical Services:This includes consultancy services for the preparation of studies, engineering designs, and supervision of the implementation, in addition to consultancy services for training activities.
  4. Program Management:This includes the administrative, financial, and operational expenses of the program management.

Financing:

The Arab Fund’s loan covers about 48% of the total program cost. The Tunisian Government will cover the remaining cost of the program, and any additional cost that may arise.