Tunisia Signs $240M AfDB Deal to Upgrade Water Networks and Clean Up Industry

Tunisia’s Minister of Economy and Planning, Samir Abdelhafidh, who also serves as the country’s Governor of the African Development Bank Group, signed the government guarantee agreements with Blomberg.

Nearly 2.9 million people in Greater Tunis are expected to benefit from more reliable drinking water under two financing agreements signed by Tunisia and the African Development Bank, pairing improvements to essential services with upgrades to ageing chemical production facilities. Worth about $240 million in total, the agreements signed in Tunis on 22 September 2026 will support water network repairs, renewable energy installations and industrial investments designed to reduce pollution and improve operating efficiency.

More Reliable Water for Greater Tunis

The national water utility, Société Nationale d'Exploitation et de Distribution des Eaux (SONEDE), will receive a €111.5 million loan backed by a state guarantee for the Greater Tunis Drinking Water Network Technical and Energy Performance Improvement Project, known as PAP-GT. The investment will address the infrastructure that carries drinking water to communities around the capital, with work covering 25 kilometres of transmission pipelines, 113 kilometres of distribution network and the modernisation of three water distribution facilities.

Leak-detection equipment will help operators identify problems across the network, supporting efforts to make water delivery more efficient and dependable. A digital upgrade will introduce 120,000 smart meters serving around 500,000 people, alongside remote metering and management systems that will give the utility better information to monitor operations and respond more proactively to network needs.

Energy improvements form another major part of the water project, with 17 megawatts of solar capacity planned to support operations. Energy-recovery turbines at pressure-breaking facilities and upgrades to electromechanical equipment will connect improvements in water supply with more efficient energy use, addressing both the physical condition of the network and the resources required to operate it.

Cleaner Production at Ageing Chemical Plants

A separate $110 million loan, backed by a sovereign guarantee, will support the state-owned Tunisian Chemical Group (GCT) through the Environmental Upgrading and Rehabilitation Support Project for its Production Units, known as PAER-GCT. The financing contributes to GCT's broader investment programme to restore production capacity, modernise management systems and accelerate environmental and energy upgrades across its operations.

Investments will cover GCT's sites in Gabès, Skhira and M'Dhilla, where planned work includes treating atmospheric emissions, modernising critical installations and improving energy efficiency. At Gabès, the recovery of available steam is expected to provide 23 megawatts of self-generation capacity, allowing the facility to make productive use of an existing energy resource as part of its rehabilitation.

Malinne Blomberg, the African Development Bank's Deputy Director General for North Africa and Country Manager for Tunisia, stressed that industrial transformation should reduce pollution and deliver lasting improvements to people's living environment. She linked GCT's modernisation to more reliable production, stronger environmental performance and improved competitiveness, placing the effects on surrounding communities alongside the company's operational needs.

Financing Supports Tunisia's Development Priorities

Tunisia's Minister of Economy and Planning, Samir Abdelhafidh, who also serves as the country's Governor of the African Development Bank Group, signed the government guarantee agreements with Blomberg. SONEDE Chief Executive Abdelhamid Mnaja and GCT head Omar Bouzouanda signed the documents for their respective loans, formalising financing for two major public enterprises responsible for essential infrastructure and industrial production.

Abdelhafidh said the projects reflect Tunisia's 2026–2030 Development Plan, particularly its priorities for food, energy and water security and a healthy environment. Both agreements sit within the wider partnership between Tunisia and the African Development Bank, supporting infrastructure modernisation, the green transition, energy efficiency and better essential services through investments with direct implications for households, utilities and industrial communities.