Tunis Urban Rail Fleet Renewal



Project number:


Business sector:

Municipal and environmental infrastructure

Notice type:


Environmental category:


Approval date:

11 Dec 2019



PSD disclosed:

25 Sep 2017

Translated version of this PSD: French

Project Description

Provision of a sovereign loan of up to EUR 100 million to the Republic of Tunisia, to be on-lent to the Societe des Transports de Tunis ("TRANSTU" or the "Company").

The tranched loan will be used to finance a EUR 240.2 million Urban Rail Fleet Renewal programme including (i) the acquisition of new light rail suburban trains for the historic rail line linking the centre of Tunis with the northern suburb of La Marsa ("Tranche 1"), (ii) the construction of a tramway maintenance depot in Manouba ("Tranche 2"), and (iii) the refurbishment of existing tramway cars and/or the acquisition of new ones ("Tranche 3"), (altogether the "Project" or the "Tranches"). It is envisaged that the Tranches will be committed in stages.

It is expected that the Project will be co-financed by a sovereign loan of up to EUR 100 million from the European Investment Bank ("EIB") and a EUR 40.2 million budget contribution from the Republic of Tunisia.

Project Objectives

Supporting the upgrade and renovation of the rail urban transport network in Tunis, in order to enhance the network's capacity, performance, reliability and safety.

Transition Impact

The Bank's engagement will entail the introduction of a Corporate Development Programme ("CDP") to support TRANSTU in its restructuring efforts and in adopting and implementing measures to improve its financial sustainability and operational efficiency. In addition, the Bank's engagement will support TRANSTU in adopting and implementing measures to improve its internal controls, compliance and other aspects of its corporate governance through the development and the implementation of a Corporate Governance Action Plan ('CGAP"). The Project will also contribute to lowering carbon emissions by i) preventing a modal shift to road by creating additional capacity in the network to address the expected passenger growth, through the renewal of TGM and metro train sets; ii) shifting traffic from road to rail transport by optimising journey times and; iii) increasing overall fleet availability and optimising operations through the construction of a new maintenance depot.

Client Information


EBRD Finance Summary

EUR 100,000,000.00

Total Project Cost

EUR 240,200,000.00

Environmental and Social Summary

Categorised B (ESP 2014). The Environmental and Social risks associated with the Project are expected to be site specific, readily identifiable and can be mitigated through the implementation of a targeted Environmental and Social Action Plan ("ESAP").

Environmental and Social Due Diligence ("ESDD") of the Project will be tranched; ESDD of Tranche 1 will be undertaken by the Bank's staff and Tranches 2 and 3 will be undertaken by independent consultants. ESDD will include a review of the Company's corporate and operational level EHSS procedures and standards, as well as an audit of existing operations and an analysis of impacts and benefits of the proposed investment, including potential GET and gender components. Potential E&S issues include disposal of hazardous waste and wastewater from trains, depots and train maintenance and repair workshops; occupational and commuter health, safety and security as well as stakeholder engagement.

An ESAP and Stakeholder Engagement Plan ("SEP") will be developed and agreed with the Company prior to Final Review. This PSD will be updated with the findings of the ESDD prior to the Board meeting.

Technical Cooperation

TC support for this operation will be provided to assist the Company with: (i) the procurement and the implementation of the Project; (ii) the preparation of an integrated due diligence study for fleet renewal programme; (iii) the development and implementation of a comprehensive Corporate Development Programme; (iv) the development and implementation of a Corporate Governance Action Plan; and (v) the development of a comprehensive support package to assist in implementation of the required measures under the Environmental and Social Action Plan.

Company Contact Information

Asma Ben Abdelaziz
+216 71 904 908
+216 71 904 883
33 Avenue du Japon - Montplaisir 1073 Tunis

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

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Email: projectenquiries@ebrd.com

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