A financing agreement between Tunisia and the Kuwait Fund for Arab Economic Development (KFAED), worth 263 million dinars (equivalent to 30 million Kuwaiti dinars – KWD), was signed on Tuesday 29 December 2020 in Kuwait-City.
This credit is intended to finance the project for improving drinking water networks in urban areas in Tunisia for the benefit of National Water Distribution Utility (SONEDE), the Ministry of Economy, Finance and Investment Support said in a press release published Tuesday in Tunis.
This is the 4th financing granted by the State of Kuwait, within the framework of a 500 million dollar envelope, announced during the International Investment Conference “Tunisia 2020” in 2016.
This amount was granted in the form of advantageous credits over 5 years, i.e. 100 million dollars each year, from 2016 to 2020, through the KFAED.
This project, subject of financing, is in line with national priorities, notably the supply of drinking water and sanitation services targeting 35 urban areas spread over 17 governorates, with a population of about 7 million inhabitants.
The aim is to improve and develop drinking water transfer networks by replacing pipes and building reservoirs, pumping stations and treatment plants as well as wells.
The loan repayment period is 30 years, including a 6-year grace period, at an interest rate of 2%.
Similarly, a guarantee agreement between Tunisia and KFAED, as well as a memorandum of understanding have been signed concerning the construction of two memorials in the North Urban Centre of the capital and at the entrance to the archaeological city of Kerkouane.
The agreements were signed on behalf of Tunisia by Hachemi Ajili, Tunisian Ambassador to Kuwait, and KFAED Director-General, Abdelwahab Ahmed Al Badr.