EIB World strengthens its support for the water and sanitation sector in Tunisia with EU backing

• €30 million to improve drinking water supply in Greater Tunis
• A structural project to help meet the expected increase in demand and adapt to the effects of climate change
• €5 million of technical assistance financed by the European Union to prepare new generation of investment projects in the public sector 
• Launch of a study with WWF and ONAS on nature-based solutions for wastewater treatment

The European Investment Bank (EIB) is stepping up its support for the water sector in Tunisia with two new loans totalling €30 million – a €22 million finance contract signed with Société nationale d’exploitation et de distribution des eaux (Sonede) and an €8 million contract signed with the Republic of Tunisia. Both operations are backed by a guarantee from the European Commission and will help finalise a structural project for drinking water supply in Greater Tunis, the most densely populated region of the country which is faced with growing demand for water.

The project includes the construction of a new treatment plant in Bejaoua, laying of water pipelines, installation of pumping stations and construction of reservoirs to serve the entire Greater Tunis region, including future development zones such as Tunis Financial Harbour.

Faced with a projected 50% increase in demand by 2040, this investment meets a strategic need to strengthen water security in Greater Tunis. It will make a real contribution to providing a reliable and sustainable service in a region with high population growth, against the backdrop of increased pressure on water resources. The additional funding is co-financed equally with Agence française de développement (AFD) under the Mutual Reliance Initiative (MRI), a cooperation mechanism between European lenders.

In addition, the EIB is launching a new strategic partnership with the World Wildlife Fund (WWF) for the benefit of the Office national de l’assainissement (ONAS), the public body responsible for managing sanitation services in Tunisia.

This partnership aims to promote nature-based solutions (NBS) in order to address water and climate change-related challenges. The study conducted in this framework will focus on the possibility of applying nature-based solutions in cities with fewer than 3 000 inhabitants. Its findings will provide the basis for an event in Tunis on 19 May, aimed at identifying a pilot project to be developed with the support of international partners. This study is in line with the EIB’s commitment to strengthening its dialogue with local civil society on projects with major environmental impact.

EIB Vice-President Ioannis Tsakiris said: “Through these two partnerships with the Tunisian government, Sonede and ONAS, the EIB is supporting concrete, innovative solutions focused on people’s needs. By ensuring reliable access to drinking water and strengthening wastewater treatment systems via nature-based solutions, our aim is to support the country’s resilience to climate challenges. This support fully reflects our commitment to sustainable and equitable development, aligned with the priorities of the strategic partnership between the European Union and Tunisia.”

EU Ambassador to Tunisia Giuseppe Perrone said: “The European Union and the EIB are supporting the Tunisian authorities in their efforts to ensure access to the drinking water and sanitation services needed by the people of Tunisia. These new activities are part of Team Europe's ‘Water’ initiative, which has already mobilised €1.7 billion – or TND 5.7 billion – to ensure access to drinking water and sanitation services in Tunisia, thanks to the combined contributions of the European Union, its Member States and financial institutions such as the EIB.”

A technical assistance contribution of €5 million financed by the European Union and implemented in partnership with the EIB will also help the Ministry of Economy and Planning to prepare a new generation of investment projects in the public sector. This assistance will aim to improve the quality, sustainability and resilience of future projects in key sectors for Tunisia's long-term development. This perfectly illustrates the commitment of the European Union and the EIB to work closely with the Ministry of Economy and Planning on the implementation of priority investment projects for Tunisia.

These efforts are part of the global approach of EIB World, the EIB Group’s arm dedicated to financing outside the European Union, in keeping with the priorities of the strategic partnership between the European Union and Tunisia and the objectives of Agenda 2030. They are also fully consistent with the Memorandum of Understanding signed between the European Union and Tunisia, which aims to strengthen wide-ranging, sustainable cooperation built around common priorities such as access to water, climate resilience and balanced territorial development.

Background information

About the European Investment Bank (EIB)

In Tunisia, the EIB finances projects with high economic and social impact in strategic sectors such as education, urban development, transport and energy.

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance. Within Team Europe, it fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to people, companies and institutions through its offices around the world.

About the European Union

The European Union is an economic and political union of 27 European countries. It is based on the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of people belonging to minorities. It works globally to promote the sustainable development of societies, the environment and economies, so that everyone can benefit from it.