Translated version of this PSD: French
The EBRD is considering a loan to Office National de l’Assainissement (“ONAS”) to finance an environmental clean-up project in Lake Bizerte. This loan of up to EUR 20 million will benefit from a guarantee from the Republic of Tunisia.
The Bizerte Lake is located in Northern Tunisia and connected to the Mediterranean via a 7 kilometre channel. The project will be part of the Lake Bizerte Environmental project lead by the European Investment Bank (“EIB”), which will mobilise donor funds from the EU Neighbourhood Investment Facility (“NIF”). To support the project EBRD is seeking to mobilise funding from the Global Environmental Fund (“GEF”).
EBRD’s loan will focus on the wastewater components of the project. EBRD’s financing will be used to finance the expansion and rehabilitation of 3 wastewater treatment plants (WWTPs) and network rehabilitation and extension. These investments will improve wastewater services to an estimated 400,000 inhabitants in the Governorate of Bizerte and will help alleviate contamination in Lake Bizerte.
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.
The main transition impact potential of the Project arises from:
- Implementation of a Policy dialogue to identify solutions to ensure the financial and operational sustainability of ONAS. In this regard, a working group with representatives of Ministry of Finance, Ministry of Equipment, Territory Planning and Sustainable Development, Ministry of International Cooperation and Development and ONAS will be created.
- The expected transition impact rating is ‘good’.
ONAS is the national sanitation utility. It is a public institution with financial autonomy placed under the Ministry of Equipment, Territory Planning and Sustainable Development. It provides wastewater services to 165 municipalities totalling over 6.5 million people It treats 232 million m3 of wastewater per year.
A sovereign-guaranteed loan of up to EUR 20 million for ONAS.
EUR 90 million including VAT co-financed by EBRD together with a EUR 40 million loan from EIB and a EUR 15 million grant from NIF.
EBRD will mobilise funds from donors to support the following technical cooperation:
- Regulatory strengthening and environmental monitoring of the industrial sector and the Bizerte Lake (EUR 0.7 million, donor to be identified).
- Governance and institutional strengthening (EUR 1.3 million, donor to be identified). This TC includes the support of the Policy Dialogue between ONAS and the ministries of Finance, Development and International Cooperation and Equipment, Territory Planning and Sustainable Development.
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