REHABILITATION URBAINE TUNISIE II

The project concerns the rehabilitation of poor urban areas distributed across all 24 regions (Gouvernorats) of Tunisia through the provision of basic public infrastructure. In particular, the project's outputs will consist in the creation or extension of water and wastewater networks, road pavement and drainage, installation of public lighting, construction of playgrounds, sports and socio-cultural centers, and economic and manufacturing facilities. Moreover, the project could include specific interventions in the historical centres of a number of cities (medinas). The project builds upon the success of the predecessor operation "Rehabilitation Urbaine Tunisie" (EIB loan signed in 2012).

The project will contribute to local development and job creation through the spill-over effects of the investments in infrastructure and buildings all over the Tunisian territory. The direct and indirect socio-economic benefits will be very large, with strong leveraging of private investments by public infrastructure investments. By strengthening the economic resilience of Tunisian municipalities, the operation will further support the ongoing de-centralisation process in Tunisia.

The project is expected to have positive social and environmental effects. Infrastructure works planned (e.g. for roads and drainage, sewage and public utilities) are expected to have very positive impacts on environmental conditions in the areas concerned. In addition, a technical assistance operation financed under the EU-funded Urban Projects Finance Initiative (UPFI) has been put in place to maximise and optimise environmental and social impacts of the project.

The project is classified as a public sector operation for procurement purposes. The promoter will be required to implement the project in accordance with the Bank's Guide to Procurement for components financed by the Bank.

This operation is covered by the ELM Guarantee.