Tunisia - EIB: 3.6 Billion Dinars for Priority Projects Financing
The European Investment Bank (EIB) will provide Tunisia with €1.87 billion (over 3.6 billion dinars) in funding, following an assessment of the country's priority needs, announced Mr. Philippe de Fontaine Vive, Vice-President of the Bank, on Thursday in Tunis.
During a press conference at the end of his visit to Tunisia (March 2 and 3), he expressed the willingness to support Tunisia's democratic transition. He stated that priorities include accelerating the disbursement of funds, €1 billion (approximately 2 billion dinars) already allocated in 2009 and 2010 to public projects in sanitation, energy, and road infrastructure.
Furthermore, this includes supporting the creation and development of small and medium-sized enterprises (SMEs) through the mobilization of EIB credit lines with Tunisian banks and leasing companies for an amount of €260 million (500 million dinars).
The EIB also plans to support, with €140 million (270 million dinars), the construction of the new Mdhila plant of the Tunisian Chemical Group (GCT) to strengthen the group's export position. This funding is pending approval from the European Commission. The institution will also mobilize €160 million (310 million dinars) for a large-scale road modernization program, prioritizing road infrastructure in inland regions.
In addition, the European Bank plans to finance, to the tune of €310 million (over 600 million dinars), several significant projects, particularly in disadvantaged areas: equipment for local communities, SMEs, and energy (gas sector).
Mr. De Fontaine Vive specified that priorities, set in consultation with Tunisian authorities, target job-creation projects and improving the daily lives of Tunisians.
He stated the aim is to send a clear signal to Tunisian and foreign investors, signifying that the new Tunisia is capable of achieving more dynamic growth rates by the end of this year and from next year onwards.
He indicated that through the mobilization of these funds, the EIB intends to contribute to a better distribution of the fruits of development in Tunisia. He noted that other projects could be financed depending on the needs expressed by the government or civil society in the health, education, or vocational training sectors.
The EIB Vice-President noted that various European structures (specialized and bilateral agencies) all agree that the time has come to relaunch cooperation with Tunisia.
The EIB is prepared to become the development bank par excellence of the Mediterranean and Tunisia, he affirmed.
Responding to a question about a possible Marshall Plan for the Mediterranean, he stated that a global investment recovery plan is likely to open up new prospects in terms of job creation and equitable wealth distribution.
Regarding the Union for the Mediterranean (UfM), the European official felt that this union needs to be reinvented, adding that leading European officials recently called for revitalizing this structure to better support the ongoing changes in the region. He paid tribute to the "extremely positive attitude of the Tunisian population and particularly the executives of public institutions who continue to work despite the conditions prevailing in the country."
Published March 14, 2011
Posted online March 14, 2011
