ADB approves $87 million loan for Tunisian railway project
The Board of Directors of the African Development Bank (ADB) has approved an $87.3 million loan to finance the second phase of a railway infrastructure project in Tunisia.
The total cost of the project is valued at $96.91 million.
ADB’s contribution will cover the foreign currency cost representing 90 percent of the total value, while the Government of Tunisia will bear the remaining 10 percent.
The aim of the railway initiative is to modernize the railway infrastructure and ration management costs in order to enhance the efficiency and quality of the services with a view to improving the competitiveness of Tunisian exports.
The project covers the coastal regions of the north, central-east, north-west, central-west and the south, including the governorates of Tunis, Ben Arous, Nabeul, Sousse, Monastir, Mahdia, Kasserine, Béja, Sfax and Gafsa. These districts are home to 85 percent of Tunisia’s population and account for the principal production activities of the country.
The project is part of the Tunisian government's investment program for the 10th Economic and Social Development Plan (2002-2006). It also falls in line with the bank's operational strategy for 2002-2004.
ADB began operations in 1968 and has committed over $3.9 million in financing to 72 projects. Rating agency Standard & Poor's upgraded ADB’s long-term issuer credit and unsecured debt ratings in July AA+ to AAA, with a stable outlook. — (menareport.com)
© 2003 Mena Report (www.menareport.com)