Tunisian Parliament Approves Financing Agreement for Railway Rehabilitation
The Tunisian Parliament approved a financing agreement on Tuesday to rehabilitate a key part of the railway network used for phosphate transportation. This project, supported by a loan signed on October 16, 2025, with the Arab Fund for Economic and Social Development (FADES), was adopted by the Assembly of the People's Representatives (ARP) with 71 votes in favor, 5 against, and 2 abstentions.
Project Objectives
At the heart of this initiative is the modernization of infrastructure and the strengthening of transport capacities, with the goal of supporting the expected revival of the phosphate industry. The authorities are counting on a resumption of production by the Gafsa Phosphate Company (CPG), the commissioning of new sites such as the Oum El Khecheb mine, and the start-up of the Mdhilla 2 plant.
Minister's Statement
According to the Minister of Economy and Planning, Samir Abdelhafidh, this project is part of a comprehensive vision to prepare the sector for an increase in production and to meet the growing demand for transportation of raw materials and processed products. The minister also recalled that the current difficulties in the railway sector are due to several factors, including the decline in transported volumes, which has affected the finances of the Tunisian National Railway Company (Sncft), as well as the aging of infrastructure and the lack of adaptation of certain equipment to technical standards, according to data reported by the TAP agency. These constraints have had a direct impact on the state of the rolling stock and tracks.
Expected Outcomes
Beyond improving economic performance, this project is also expected to generate positive spin-offs at the regional level, through job creation and reduced pressure on the road network, which is often used for phosphate transportation.
