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                 , FOR IMMl:DIA TE RELEASE



      .World Bank
              1818 H Street, N.W., Washington, D.C. 20433, U.S.A.• Telephone: (202) 477-1234



                     BANK NEWS RELEASE NO. 83/59                                               Contact: Hugh Blackman
                     March 31, 1983                                                                  ( 202) 477- 3573

                                    TUNISIA TO USE $34 MILLION IBRD LOAN FOR SEWERAGE PROJECT


                            Sanitary conditions in 30 towns of Tunisia will be greatly improved
                     through a sewerage project supported by a $34 million loan from the
                     International Bank for Reconstruction and Development (IBRD). About 400,000
                     people will benefit directly from being connected to new or improved sewers.

                            The Third Urban Sewerage Project will rehabilitate and expand the
                     existing sewerage systems of 30 towns in six zones: North, Cap Bon, Sahel,
                     Sfax region, Interior, and South. Construction of about 110 kilometers of
                     primary sewers, 20 sewage pumping stations, 300 kilometers of secondary sewers
                     and 25 kilometers of stormwater collectors will be financed. In addition, 12
                     sewage treatment plants will be b11ilt.

                            Health hazards now caused by the open discharge and overflow of sewage,
                     the contamination of drinking water, and the use of raw sewage for irrigating
       ~             garden crops will be eliminated as a result of the $78.5 million project.

                            Equipment for maintenance and data processing, as well as office
                     accommodations for the National Sewerage Authority (ONAS) will be provided.
                     Feasibility studies for 10 to 15 new urban centers to be served by ONAS in the
                     future and for promoting the reuse of treated sewage for indu_.trial or
                     agricultural purposes will also be undertaken.

                            The Republic of Tunisia and ONAS will provide $31.7 million and
                     $12.8 million for the project, respectively.

                            Previous assistance to Tunisia under two urban sewerage projects
                     amounts to two ISRD loans totaling $54.5 million. As a result of the first
                     project which depolluted Lake Tunis, land value increased dramatically. The
                     second project is progressing satisfactorily.

                            The IBRD loan is for 17 years, including four years of grace, at an
                     interest rate tied to Bank borrowings. The lo&n alsc carries an annual
                     commitment charge of 0.75% on undisbursed balances and a front-end fee of
                     0.75% on the amount of the loan.



                     NOTE:     Money figures are exprescled in U.S. dollar equivalents •




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