Operating Fund for Rural Water Infrastructure (Inv.)

active

The FC project Operating Fund for Rural Water Infrastructure (in French: Fonds de Bonne Gestion, FBG) is an important component of the FC programme Rural Development with Integrated Water Resources Management (IWRM) (2013 67 119). It provides for the establishment of an operating fund to finance repair measures and small replacement investments in the supply systems of up to 161 user groups for drinking water supply (Groupements Hydrauliques, GH) and for irrigation (Groupements de Développement Agricole, GDA) in 5 governorates in central Tunisia, namely Kairouan, Kasserine, Sidi Bouzid, Mahdia and Sfax (investment measure). To ensure the sustainability of the project, the project sponsor and the water user groups are to be supported in implementing the operating and financing concept, which is very innovative for Tunisia (accompanying measure, BM). The overarching development policy objective of this innovative pilot project is to contribute to improving the living conditions of the population in rural areas of central Tunisia through sustainable management and efficient use of water resources. The water supply and irrigation systems financed in the past are to be operated sustainably through compliant and resource-saving management (goal of the FC project). The direct target group is the rural population in the project area, who will be able to operate and maintain the drinking water and irrigation systems independently, efficiently and sustainably in line with the project objective. The water savings achieved by the project will mean that more people in central Tunisia can be supplied with water overall, and the local private sector will also be supported (indirect target group). The total cost of the project, which is designed to run for around 5 years, is EUR 16.8 million, consisting of EUR 14.3 million for capital investments and EUR 2.5 million for the BM. The FC financing share covers approximately 70% of the costs of the material investment with EUR 10 million (budget loan) and 100% of the BM with EUR 2.5 million (subsidy).