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Monday, 16 January 2023

KfW funding will help Tunisia save water + improve sanitation + boost wind energy

More details on Tunisia’s funding from KfW: Remember that blink-and-you’ll-miss-it announcement about Tunisia getting c. EUR 300 mn from Germany’s KfW? We now know the EUR 315 mn funding Tunisia is receiving from the German state lender KfW will be directed towards water resource management, wind energy and sanitation, according to Tunisian daily La Presse, which published more details on Thursday. Over half of the total EUR 315 mn funding is coming in the form of grants, La Presse adds.

Shoring up Tunisia’s water reserves: EUR 265 mn is going to Tunisia’s Agriculture, Resources and Fisheries Ministry to support five projects aimed at preserving water resources. EUR 204 mn (a EUR 164 mn loan from KfW and a EUR 39.85 mn grant from the EU) is going towards Tunisia’s Storage, Transfer and Flood Protection System improvement program, the news outlet notes. The funds will be used to develop water storage facilities with a combined capacity of 140 mn cubic meters, and protect part of the Medjerda Valley from flooding. Some EUR 38 mn (including an EUR 14.94 grant from the EU) is being allocated to implement the second phase of the Agricultural and Rural Development around Hill Lakes project, which aims to increase water availability. EUR 10 mn will go towards the upgrade of the Laaroussia canal, and EUR 12 mn will be used to implement two drinking water supply projects.

Strengthening wastewater treatment and sanitation: A EUR 20 mn loan from KfW is going to Tunisia’s National Sanitation Office to spend on two ongoing projects: A EUR 15 mn sanitation program that involves revamping existing sanitation systems and constructing wastewater treatment plants and a EUR 5 mn upgrade and extension of existing wastewater treatment plants and pumping stations.

And boosting wind energy production: Some EUR 29.8 mn is going to the state-owned Tunisian Electricity and Gas Company to replace old wind turbines with new ones, upping the Sidi Daoud wind farm’s total capacity to 29-33 MW.

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