ARP considers bill on approval of credit agreement to renovate phosphate railway network

Tunis: The Assembly of People's Representatives (ARP) on Wednesday considers in a plenary session a bill on the approval of a credit agreement concluded on February 22, 2024 between Tunisia and the Saudi Fund for Development (SFD) for the co-financing of a project to renovate the railway network for the transport of phosphate. Under this agreement, Tunisia will be granted TND 172.7 million (USD 55 million) in funding from the SFD, repayable over 20 years with a 5-year grace period and an interest rate of 2%. The project to renovate the railway network used to transport phosphate, at a total cost of TND 518 million, is managed by the National Tunisian Railway Company (SNCFT). The goal of the project is to renovate and upgrade part (190 km) of the railway lines used to transport phosphate, with a view to facilitating the transport of larger quantities of phosphate and optimising costs. It further aims to boost the SNCFT's capacity to transport produced and processed phosphate, improve the financial situatio n of companies operating in the sector, and contribute to the recovery of the national economy. The project also aims to reduce the maintenance costs of the railway network, much of which has been in operation for over 40 years, to increase the use of new phosphate wagons with a capacity of 3,200 tonnes, and to contribute to regional development and the creation of direct and indirect employment. The expected objectives of the project are to protect the environment, save energy, reduce traffic on the road network and improve the balance of trade by guaranteeing the transport of larger quantities of phosphate and phosphate derivatives. The first phase of this project covers the part of the phosphate transport rail network located in southern Tunisia, notably in the governorates of Sfax, Gafsa and Gabes. This first phase will take 2 years to be completed. The phosphate sector plays an important role in the national economy, accounting for 3% of GDP and for 6% of exports compared with 10% in 2010. This decl ine is due to the structural problems facing the sector's companies. Source: Agence Tunis Afrique Presse