World Bank Approves $332.5 Million for Tunisia Water Projects to Create 17,000 Jobs

The World Bank has approved $332.5 million in financing for two major water infrastructure projects in Tunisia, marking the first phase of a long-term $700 million water security programme aimed at tackling climate-driven water scarcity, strengthening agriculture, and boosting rural livelihoods.

The initiative—part of the Tunisia Water Security and Resilience Program—targets both urban drinking water systems and agricultural irrigation, with wide-ranging economic and social impacts.

A Dual Approach to Water Security

The programme combines two large-scale projects:

• Potable Water Security and Resilience Project – $208.5 million

• Irrigation Water Security, Resilience and Value-Addition Project – $124 million

Together, they are expected to:

• Benefit over 2.3 million people

• Create 4,000+ permanent jobs

• Generate 13,000+ temporary jobs

• Strengthen Tunisia's resilience to climate change and water scarcity

World Bank officials described the initiative as a comprehensive, multi-phase intervention, leveraging the full capabilities of the World Bank Group to deliver long-term water security.

Expanding Drinking Water Access and Reliability

The potable water project will significantly upgrade Tunisia's urban water infrastructure, focusing on both supply expansion and efficiency improvements.

Key components include:

• Expansion of the Zarat desalination plant in Gabès, doubling capacity from 50,000 to 100,000 cubic meters per day

• Deployment of 100,000 smart water meters to improve monitoring and reduce waste

• Rehabilitation of distribution networks in Sfax, Tozeur, and Kebili

Expected outcomes:

• 2.3 million people benefiting from improved water services

• 224,000 people gaining continuous water supply

• 440,000 people experiencing improved water quality

• Creation of 600 permanent jobs and 6,000 temporary jobs

The project also includes modernization efforts for SONEDE, Tunisia's national water utility, aimed at improving operational performance.

Transforming Irrigated Agriculture

The irrigation project targets rural regions where water efficiency is critical for both livelihoods and food security.

It will focus on:

• Rehabilitating irrigation infrastructure in Jendouba, Béja, Bizerte, and Siliana

• Strengthening regional agricultural institutions and water user groups

• Supporting farmers to adopt climate-smart technologies and access higher-value markets

Impact projections include:

• Direct benefits to nearly 4,000 farmers through improved irrigation services

• Additional support for 9,000 farmers through extension and value-addition programmes

• Creation of 3,400 permanent jobs and 7,000 construction jobs

The project is designed to shift agriculture toward higher productivity and market-oriented output, improving incomes in rural communities.

Addressing Climate and Economic Pressures

Tunisia faces growing challenges from:

• Declining water availability due to climate change

• Rising demand from urbanization and agriculture

• Infrastructure inefficiencies and water losses

The programme aims to address these pressures by:

• Diversifying water sources (including desalination)

• Reducing system losses through technology

• Strengthening institutional capacity

A Long-Term $700 Million Strategy

The approved projects represent Phase 1 of a broader 10-year, $700 million programme structured under a Multi-Phase Programmatic Approach.

Future phases will focus on:

• Sanitation systems

• Wastewater collection, treatment, and reuse

• Strengthening Tunisia's national sanitation utility (ONAS)

This phased approach allows for scaling successful interventions while adapting to evolving challenges.

Economic and Development Impact

Beyond water security, the programme is expected to:

• Support job creation and economic activity, particularly in rural areas

• Improve public health outcomes through better water quality

• Enhance agricultural productivity and food security

• Build resilience against climate-related shocks

World Bank Country Manager Alexandre Arrobbio emphasized the long-term commitment:

"This reflects our determination to support Tunisia's water sector with comprehensive, lasting solutions."

A Critical Investment in Stability and Growth

As water scarcity becomes an increasingly urgent issue across North Africa, the programme positions Tunisia to:

• Strengthen resource management

• Improve service delivery

• Support inclusive economic growth

With millions set to benefit and thousands of jobs to be created, the initiative represents one of the most significant investments in Tunisia's water infrastructure and climate resilience in recent years.