Drinking water networks in Tunisia, particularly in the urban areas, are set to be improved according to the North Africa Country’s ministry of economy, finance, and investment. The ministry revealed this after the government of Tunisia signed, in Kuwait, a financing agreement worth about US$ 100m, with the Kuwaiti Fund for Arab Economic Development (FKD) commonly known as the Kuwait Fund.
“This credit granted by the FKD, will contribute to the financing of the project to improve drinking water networks in urban areas in Tunisia for the benefit of SONEDE, the public company in charge of production and distribution of drinking water in Tunisia,” stated the Ministry in a press release.
An overview of the drinking water networks improvement project
The drinking water networks improvement project is in line with national priorities, particularly the supply of drinking water and sanitation services, targeting 35 urban areas spread over 17 governorates, with a population of approximately 7 million inhabitants.
The project involves improving and developing drinking water transfer networks by replacing pipes and building reservoirs, pumping stations, and treatment stations as well as wells.
About the Loan
The loan facility is the 4th financing granted by the State of Kuwait, within the framework of an envelope of US$ 500m, announced during the international conference for the investment “Tunisia 2020”.
This amount was granted in the form of advantageous credits over 5 years, that is 100 million dollars each year, from 2016 to 2020, through the FKD, which is a State of Kuwait’s agency that assists Arab and other developing countries in developing their economies by providing them with loans and/or technical assistance required for the implementation of their development programs and projects.
The loan repayment period is 30 years, including a 6-year grace period, at an interest rate of 2%.