The Kuwait Fund for Arab Economic Development and the Tunisian government signed a loan agreement for KWD 10 million (approximately $32 million) to finance the renewal and development of railway lines for phosphate transport in southern Tunisia.
Project details
The project will renew and develop 190 kilometres of railway lines in Tunisia’s phosphate triangle. Upgrades will accommodate modern electric and fuel-powered locomotives, enabling the transport of larger phosphate quantities, doubling train speeds to 80–100 km/h, and reducing road traffic and carbon emissions. A concrete sleeper plant will also be built, with consulting services provided to oversee implementation.
The project is scheduled for completion in early 2028 and aligns with Tunisia’s national transport strategy.
Financial structure
The total cost of the project is estimated at TND 536 million (KWD 53.6 million). The financing plan includes:
- Kuwait Fund loan: KWD 10 million
- Saudi Fund for Development loan: $55 million
- Tunisian government: Remaining funding and cost overruns
The Kuwait Fund loan will be repaid over 27 years, with a four-year grace period, in 46 semi-annual instalments. The loan carries a 2% annual interest rate and a 0.5% fee for administrative costs.
This is the 39th loan extended by the Kuwait Fund to Tunisia, bringing total commitments to KWD 282.4 million. Approximately KWD 191.8 million (67.9%) of these loans have been disbursed, with Tunisia repaying KWD 95.9 million (33.9%). Additionally, the fund has granted Tunisia KWD 400,000 for feasibility studies.
The Kuwait Fund supports development projects in the Arab region and other developing countries through concessional loans and technical assistance.
