Small Cities Sanitation Programme



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

18 Jul 2018



PSD disclosed:

11 Sep 2017

Translated version of this PSD: French

Project Description

Provision of a loan to the Office National de l'Assainissement ("ONAS") to cofinance an EUR 160 million programme to rehabilitate and upgrade the sanitation network in up to 35 small cities (less than 10,000 inhabitants) in Tunisia alongside the African Development Bank ("AfDB") and the Tunisian Government. This loan of up to EUR 66.5 million will benefit from a guarantee from the Republic of Tunisia.

The Project is part of the Country's Strategic Plan "Tunisia 2016-20". The 35 small cities were identified as priority locations given their poor sanitation standards and the consequential health and hygiene risks to the communities and the harmful impact on the environment.

EBRD's financing will be used to finance the construction of new wastewater treatment plants as well as an upgrade and rehabilitation of sanitation network systems. These investments will improve wastewater services to an estimated 157,000 inhabitants and will help alleviate soil contamination in the concerned areas.

The success of the Project will be measured by the following benchmarks:

  • Total population benefiting from improved access to wastewater services.
  • Annual m3 of wastewater treated.

Client Information


EBRD Finance Summary

EUR 66,500,000.00

Total Project Cost

EUR 159,600,000.00

Environmental and Social Summary

Categorised B (2014 ESP). The Project is expected to result in significant environmental, social  and health and safety benefits once operational including the prevention of soil contamination resulting from leakages in more than 35 small cities in Tunisia. The construction and operation of the Project may, however, be associated with some environmental and social issues although these are expected to be readily addressed through the implementation of mitigation and management measures. The Project is expected to serve a large population, however none of the individual wastewater treatment plants will exceed the 150 000 population equivalent threshold for category A projects.

Environmental and Social Due Diligence ("ESDD") will be conducted by an independent consultant.

The ESDD will include an E&S Analysis of the project and review ONAS' implementation of the Corporate-level E&S management procedures actions previously agreed under the Lake Bizerte Integrated Environmental Programme.

Key issues to be considered include worker and community health and safety issues, land acquisition and impacts on livelihoods, waste management, impacts to biodiversity, and nuisance impacts such as noise, dust and odour issues. Careful preparation and implementation of the stakeholder engagement framework will be key for the successful implementation of the Project. Compliance of the Project with the EU Urban Wastewater Treatment Directive will also be reviewed during the ESDD. The GET component of the Project will be assessed during ESDD. An Environmental and Social Action Plan will be agreed with the Client to ensure that the Project is structured in line with the EBRD Performance Requirements, covering the key areas of environmental and social issues and impacts.

Technical Cooperation

TC support for this operation will be provided to assist the Company with: (i) development of a comprehensive support package for the implementation of the required measures under the Environmental and Social Action Plan and (ii) implementation of Private Sector Participation (“PSP”) measures, including monitoring of new management contracts and PPP structures.

Company Contact Information

M Hassene Chatti
Address: 32, Rue Hedi Nouira – 1001 Tunis
Telephone: +216 71 352 015
Fax: +216 71 353 816
Company website

Business opportunities

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Text of the PIP

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