Tunisia Invests in Railway Sector to Revive Phosphate Transport with $174 Million Financing
Tunisia is investing in its railway sector to revive phosphate transport, thanks to a $174 million financing package.
The funding consists of a $33 million loan from the Kuwait Fund for Arab Economic Development (KFAED), covering 70% of foreign currency needs, and a $55 million loan from the Saudi Fund for Development (SFD). The Tunisian government will cover the remaining financing and any potential cost overruns.
The project aims to modernize 190 kilometers of railway tracks in the phosphate triangle. The new infrastructure will accommodate more powerful locomotives, capable of doubling their speed from 40 to 80-100 km/h, and increasing transported volumes.
This upgrade will also reduce carbon emissions, in line with the country's energy transition goals.
A concrete sleeper factory will be built to ensure local production for railway maintenance. The KFAED loan comes with favorable conditions, featuring a 2% annual interest rate and a 27-year repayment period.
The project, scheduled for delivery in the first half of 2028, aims to strengthen the phosphate industry, improve regional connectivity, and stimulate Tunisia's economic development.
