• European Investment Bank to provide $34 million in new funding to support Tunisia’s water infrastructure

• Main project includes new water treatment plant and pipeline upgrades to meet growing demand

• Tunisia steps up climate adaptation as food inflation rises and water scarcity worsens

The European Investment Bank (EIB) will lend Tunisia a total of €30 million ($34 million) to help improve access to drinking water and strengthen the country’s ability to adapt to climate change.

The announcement came during a visit to Tunis by EIB Vice-President Ioannis Tsakiris on April 28 and 29.

The funding will support two separate loans. A total of €22 million will go to Tunisia’s national water utility, SONEDE, to complete a key project aimed at securing drinking water for Greater Tunis. The plan includes building a new treatment plant in Bejaoua, laying pipelines, and installing pumping stations and water tanks. The goal is to prepare for a projected 50% increase in demand by 2040.

The second loan, worth €8 million, will be granted directly to the Tunisian government. It will support broader efforts to improve public access to clean water and strengthen sanitation systems, in partnership with SONEDE and the national sanitation utility ONAS.

“Through these two partnerships with the Tunisian government, SONEDE, and ONAS, the EIB is supporting practical, people-centered solutions. Whether it is about securing access to clean drinking water or improving sanitation through nature-based approaches, our goal is to help Tunisia build resilience in the face of climate challenges,” said Tsakiris.

Tunisia has been facing serious water stress due to repeated droughts and high agricultural consumption. Water shortages have cut crop yields and worsened food insecurity at a time when food prices are already rising. In March 2025, food inflation hit 7.8%, up from 7% the previous month, according to the National Institute of Statistics.

To manage the crisis, authorities are rolling out several solutions. These include better water management, more seawater desalination, and public awareness campaigns. Under the 2025 state budget, an extra 2 million dinars ($669,573) was added to the National Housing Improvement Fund to help households build rainwater storage tanks.

Despite progress, challenges remain. While access to drinking water rose from 82% in 1990 to 97% in 2012, about 250,000 people in Tunisia still rely on unsafe sources. The country aims to reach universal access to clean water and sanitation by 2030.

The EIB remains one of Tunisia’s key development partners, financing major projects in water, energy, education, transport, healthcare, and local development. In 2024, the bank invested over €415 million in Tunisia to support long-term infrastructure upgrades.