Republic of Tunisia

Integrated Development Program
Loan No: 574 Interest Rate: 3.0 %
Beneficiary: Regional Development General Commissariat Grace Period: 5 years
Project Cost: KD 88.6 million Maturity: 22 years
Amount of Loan: KD 42.0 million Repayment: 35 semi-annual installments
Date of Board Approval: 2012-01-12 First Installment: 5 years following the first disbursement
Date of Loan Agreement: 2012-01-12 Date of Loan Effectiveness: 2012-11-18

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 least developed regions of Tunisia, through the implementation of a number of projects. These projects will provide new job opportunities for small farmers, craftsmen and skilled professionals, and holders of higher education and vocational training degrees. The program also aims at increasing productivity, developing infrastructure, and improving public utility services, in order to achieve a balanced regional development by stimulating economic activity and community development, and reduce economic and social disparities among the population.

Description:

The program is based on a set of integrated development plans in 90 regions spread over all provinces of the country. The program, which is expected to be completed by the end of 2014, includes the implementation of several individual projects in different areas covering agricultural activities, small activities and traditional industries, and projects to develop infrastructure, increase productivity and improve public utilities. The program consists of the following main components:

  1. Individual Production Projects: This includes the implementation of about 6000 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.
  2. 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 900 km, and a width ranging between 8 and 10 m. .
    2. Drinking Water and Sanitation:This includes the supply of drinking water to about 50 thousand inhabitants, through the construction of major and minor pipe networks and their accessories, with an estimated total length of about 355 km and diameters ranging between about 75 and 200 mm. It also includes the provision of sanitation services to a number of communities, by laying pipelines with a total length of about 47 km and diameters ranging between about 160 and 250 mm.
    3. Public and Household Lighting:This includes the work necessary for the supply and installation of approximately 3,400 lighting poles for a number of municipal roads and necessary power lines. It also includes establishing transmission lines to supply electricity to some 600 houses.
    4. Groundwater Wells:This includes the drilling and rehabilitation of about 30 deep wells, with a depth ranging between about 65 and 700 m, and equipping them with pumps and hydro-mechanical equipment. It also includes the supply of electricity to these wells and about 355 shallow wells, from the national electricity network.
    5. Irrigation, Water and Soil Conservation:This includes the development of about 2,800 hectares of irrigated areas, through laying primary and secondary pipe works and their accessories to transport water to these areas and distribute it to farms. It also includes the protection of about 300 hectares of agricultural land in areas threatened by soil erosion.
    6. Industrial Zones, and Craft and Agricultural Centers:This includes the creation of industrial zones in an area of approximately 40 hectares, the construction of some 30 crafts regions, the construction of 46 industrial shops, 4 centers for the collection of agricultural products, as well as 4 service centers, in addition to the creation of about 9 local markets and 8 centers for marketing and product promotion.
    7. Health, Social and Cultural Utilities:This includes the construction of 46 primary health centers, 54 clubs and youth centers, 11 public libraries and a culture center, 10 clubs and child centers, and 12 sports halls, as well as the creation of some 49 sports grounds, 40 parks and green areas, the restoration of 6 ancient places and the expansion of 3 arenas for festivals.
  3. Technical Services: This includes consultancy services for the preparation of studies and engineering designs, the supervision of the implementation program, in addition to consultancy services needed to conduct training activities.
  4. Program Management: This includes the administrative, financial and operating expenses for the program management, and the institutional support to the beneficiary.

Financing:

The Arab Fund’s loan covers about 47% of the total program cost. The Tunisian Government will cover the remaining cost of the program and any additional cost the may arise.