Tunisia and the African Development Bank (AfDB) signed two landmark financing agreements on September 22, 2026, totaling approximately $240 million to overhaul the capital’s potable water systems and rehabilitate aging production facilities of the state-owned Tunisian Chemical Group (GCT).
AfDB Approves €111.5 Million for Greater Tunis Water Project
The first agreement provides a €111.5 million loan, backed by a state guarantee, to Société Nationale d’Exploitation et de Distribution des Eaux (SONEDE), Tunisia’s national water utility distributor. The financing will support the Greater Tunis Drinking Water Network Technical and Energy Performance Improvement Project (PAP-GT).
The water infrastructure project aims to deliver more reliable and efficient potable water supply to nearly 2.9 million residents in Greater Tunis. Key components include:
- Rehabilitation of 25 km of transmission pipelines and 113 km of distribution networks
- Modernization of three water distribution facilities
- Deployment of advanced leak-detection equipment
- Installation of 17 megawatts of solar capacity
- Energy-recovery turbines at pressure-breaking facilities
- Installation of 120,000 smart meters serving approximately 500,000 people
$110 Million Loan to Support GCT Environmental Upgrades
The second facility is a $110 million loan to GCT, also backed by a sovereign guarantee, financing the Environmental Upgrading and Rehabilitation Support Project for the Tunisian Chemical Group’s Production Units (PAER-GCT).
The investment program aims to restore production capacity, modernize management systems, and accelerate environmental and energy upgrades at GCT sites in Gabès, Skhira, and M’Dhilla. Planned interventions include treating atmospheric emissions, modernizing critical installations, and improving energy efficiency. At Gabès, steam recovery is expected to deliver 23 megawatts of self-generation capacity.
Officials Emphasize Alignment with National Development Plan
Samir Abdelhafidh, Minister of Economy and Planning and the country’s Governor of the African Development Bank Group, signed the government guarantee agreements with Malinne Blomberg, the Bank’s Deputy Director General for North Africa and Country Manager for Tunisia. SONEDE Chief Executive Abdelhamid Mnaja and GCT head Omar Bouzouanda also signed the loan documents.
“The two projects covered by these financing agreements align with the priorities of Tunisia’s 2026–2030 Development Plan, particularly the pillar on food, energy and water security and the preservation of a healthy environment,” Abdelhafidh said.
Blomberg emphasized the importance of sustainable industrial transformation: “Industrial transformation must go hand in hand with reducing all forms of pollution and sustainably improving people’s living environment.” She added that modernizing GCT should deliver “more reliable production, improved environmental performance and stronger competitiveness.”
Strategic Partnership Advances Tunisia’s Development Goals
Both agreements fall under the partnership between the African Development Bank and Tunisia to support the country’s 2026–2030 National Development Plan. These priorities include infrastructure modernization, the green transition, energy efficiency, and improved essential services.
The signing ceremony in Tunis marked a significant step forward in Tunisia’s efforts to address water security challenges and revitalize its industrial sector while meeting environmental sustainability targets.
TunisianMonitorNews
