Grand Tunis Water Network Modernization: €111.5 Million Financing Advances to Key Institutional Milestone
A €111.5 million financing package aimed at modernizing the drinking water network in the Grand Tunis region has reached a significant institutional milestone. On Monday, the Bureau of the Assembly of the Representatives of the People (ARP) decided to submit, for urgent review, a draft law approving the guarantee agreement concluded between Tunisia and the African Development Bank (AfDB) to the Finance and Budget Committee.
Project Overview and Funding Structure
According to the statement of purpose, the project represents a total investment of €151.1 million. The funding structure is primarily composed of:
- A loan from the African Development Bank (AfDB)
- A €30 million grant from the European Union
- A €9.6 million contribution from the National Company for Water Exploitation and Distribution (SONEDE)
Strategic Objectives (2026–2031)
Scheduled for implementation between 2026 and 2031, this program aims to sustainably improve the performance of the drinking water distribution network in the capital and its suburbs. The initiative focuses on three core pillars:
- Reduction of water losses and leaks
- Optimization of energy consumption for water infrastructure
- Modernization of remote control and management tools for infrastructure
Key Components and Budget Allocation
The project is structured around four main components:
| Component | Budget Allocation | Description |
|---|---|---|
| Network Rehabilitation | €92.9 million | The primary investment area, focusing on the rehabilitation of supply and distribution networks. |
| Energy Modernization | €24.6 million | Upgrading energy efficiency and integrating renewable energy sources. |
| Digitalization & Smart Systems | €18.6 million | Digitalizing network management and deploying intelligent systems. |
| Capacity Building | €15.0 million | Strengthening SONEDE’s technical capabilities for program management and monitoring. |
On-the-Ground Interventions
Field operations will prioritize the most degraded sections of the network, including:
- Rehabilitation of 25 kilometers of supply mains
- Rehabilitation of 113 kilometers of distribution networks
- Enhanced leak detection capabilities
- Implementation of a centralized system for remote supervision and management of the networks
Digital Transformation and Energy Efficiency
Digital transformation plays a pivotal role in this program, highlighted by:
- The installation of 120,000 smart meters connected to SONEDE’s commercial information system.
- The integration of renewable energy sources, specifically through the installation of photovoltaic panels at the Ghedir El Golla and Mornaguia sites.
Financial Terms of the AfDB Loan
The African Development Bank loan will be repaid over a 20-year period, with a 5-year grace period. Key financial terms include:
- Interest Rate: Variable, calculated based on the 6-month Euribor plus a margin of 0.8%.
- Fees: Two commissions of 0.25% each, applied for facility opening and commitment.
