Tunisia Signs Two Guarantee Agreements with African Development Bank to Modernize Water and Industrial Infrastructure
Tunis, September 22, 2026 – The Tunisian Republic and the African Development Bank (AfDB) signed two guarantee agreements on Tuesday, September 22, 2026, in Tunis. These agreements benefit the Société Nationale d’Exploitation et de Distribution des Eaux (SONEDE) and the Tunisian Chemical Group (GCT), financing critical initiatives to modernize the country’s hydraulic and industrial infrastructure.
1. Enhancing Water Network Efficiency in Greater Tunis
The first financing package, valued at €111.5 million (approximately 377 million Tunisian dinars), is dedicated to improving the technical and energy performance of the drinking water network in Greater Tunis.
Key Objectives
- Reduce water losses across the distribution system.
- Improve energy efficiency in water treatment and distribution processes.
- Strengthen network management through advanced monitoring and control systems.
Project Components
The SONEDE project includes:
- Rehabilitation of existing pipelines.
- Modernization of distribution, pumping, and storage facilities.
- Deployment of telemetry and remote management solutions.
According to the AfDB, the program specifically involves the renewal of approximately 150 km of pipelines and the introduction of digital tools to enable real-time network monitoring.
2. Environmental Upgrading and Industrial Modernization at GCT
The second financing package, amounting to $110 million (approximately 321 million Tunisian dinars), supports the environmental upgrading and modernization of production units within the Tunisian Chemical Group (GCT).
Approved by the AfDB Board of Directors in January 2026, this financing aims to:
- Enhance environmental, energy, and operational performance at GCT’s facilities in Gabès, Skhira, and M’Dhilla.
- Significantly reduce air pollution emissions from industrial operations.
Signatories and Institutional Context
The agreements were signed by:
- Samir Abdelhafidh, Minister of Economy and Planning.
- Malinne Blomberg, Deputy General Manager of the AfDB for North Africa and Representative of the Bank in Tunisia.
The Chief Executive Officers of the beneficiary entities also signed the operational documents:
- Abdelhamid M’encha, CEO of SONEDE.
- Omar Bouzouada, CEO of GCT.
Alignment with National Development Priorities
For the Tunisian government, these projects are integral to the priorities outlined in the 2026–2030 Development Plan. Key focus areas include:
- Water and energy security.
- Food security.
- Environmental protection.
The plan explicitly allocates investments toward:
- Ensuring the sustainability of water resources.
- Reducing pollution levels.
- Modernizing public enterprises and infrastructure.
These initiatives underscore Tunisia’s commitment to sustainable development and the modernization of its critical public services and industrial sectors.