Policy Based Lending Water I

completed

The Tunisian government and KfW are jointly developing reform measures for the water sector that will make a direct contribution to improving the efficiency, environmental and social compatibility, and sustainability of drinking water supplies and wastewater disposal. KfW is building on its long-standing cooperation in the water sector and the need for reform identified in this context. The reform measures are being applied at national level so that the entire population of Tunisia can benefit from them. The implementation of the reform is the key element that makes the associated policy-based loan payment possible. First comes the reform, then the reward in the form of a loan for the central state budget of Tunisia. Accordingly, the Tunisian government must initiate and implement the reforms on its own. KfW has already used this instrument in various regions, but the use of the PBL opens a new chapter in the cooperation between KfW and Tunisian partners.