Several financing agreements were signed between Agence Française de Développement (AFD) and the Republic of Tunisia during the French Prime Minister’s official visit to Tunisia on 23 and 24 April 2009. The agreements, representing a total amount of some 80 million euros, include 10.9 million euros under an agreement signed in April 2008 between the two countries for concerted migration management and inclusive development.

The projects financed are in line with the three main strategic areas defined by the Tunisian and French governments: to support anchoring to the European Union via upgrading policies, to improve living conditions for populations, and water resources management (drinking water, agricultural use).
These projects underpin France’s position as the leading bilateral donor in Tunisia. They specifically focus on two emblematic issues for the Union for the Mediterranean: water and food security:

•a 21 million euro loan with a 400 000 euro grant to finance a program for drinking water supply in rural areas for over 80 000 people. The program will also strengthen the capacities of SONEDE, the national water operator.
• a 45 million euro loan with a 1.5 million euro grant earmarked to finance PISEAU II, the national water sector program that aims to develop and strengthen the effectiveness of irrigated areas (25 000 hectares) and to extend drinking water supply and rural sanitation systems (50 000 inhabitants). This project is cofinanced with the World Bank (€23M) and the African Development Bank (€23M).

AFD has also signed two agreements with the Republic of Tunisia for projects implemented on behalf of the French Ministry of Immigration, Integration, National Identity and Inclusive Development (MIIINDS), under the agreement for the concerted management of migratory flows and inclusive development signed on 28 April 2008, for a total of 10.9 million euros to support vocational training and business creation:

•a 10 million euro grant for the construction and rehabilitation of two vocational training centers for innovative professions in construction, public works, soldering and metal construction that integrate new standards and best practices in terms of the environment and energy efficiency.
•The implementation of a system to support start-up entrepreneurs, including the creation of a guarantee fund via a 900 000 euro grant.

A memorandum for a high-level strategic dialogue was signed by the French Secretary of State for Cooperation and Francophonie, Mr. Alain JOYANDET, the Tunisian Minister of Development and International Cooperation and AFD. This agreement underscores the quality of the partnership enjoyed between France and Tunisia, particularly via AFD, that goes way beyond project financing.

Finally, a €18.5M credit financing agreement will be signed shortly between Tunisia and AFD. It will contribute to rehabilitating 19 water treatment plants and 130 pumping stations and aims to protect underground and surface water resources and improve living conditions for populations (over 1 million people by 2013). This operation is cofinanced with KFW (€55M) and the European Union (€3M) under the Neighbourhood Investment Facility. AFD will consequently have signed agreements totalling almost 100 million euros.

Agence Française de Développement (AFD), a public establishment, has been combating poverty and promoting development in South countries and Overseas France for over 60 years. It implements the development policy defined by the French Government. AFD is active in the field in over 50 countries and finances and supports projects to improve living conditions for populations, boost economic growth and protect the planet. In 2008, AFD earmarked some 4.5 billion euros to finance operations in South countries and Overseas France. Thanks to this financing 7 million children were able to go to school, 2.1 million patients gained better access to health services and 4.4 million people gained access to water supply. Energy efficiency projects for the same year will save 3.3 million tons of CO2 annually.

To find out more about projects financed by AFD in Tunisia:
www.afd-tunisie.org