Tunisia - Greater Tunis Sewerage Project
Webster, Leila
Ratings for the Greater Tunis Sewerage Project for Tunisia were as follows: the outcome was satisfactory, the sustainability was likely, the institutional development impact was modest, and the Bank and borrower performance were both satisfactory. Lessons learned from the project: The project restructuring should have been done earlier and in a formal way to allow for a formal revision of the development objectives. Considering the shift in strategic thinking about private sector participation (PSP) in the water and sewerage sector and the failure of some build-operate transfer schemes in developing countries, the Bank should have been less aggressive with regard to promoting PSP schemes. The Bank should also be more realistic in terms of cost recovery for sewerage and progress already accomplished tariffs in Tunisia as compared to other countries. Financial covenants related to increases of sewerage tariffs are always difficult to obtain from the Government. They are usually obtained just before the loan is made when the Bank's leverage is the highest. A key factor of the project's moderate success in improving overall sector performance and achieving most development objectives lies in the National Sewerage Board's strong institutional capacity and long familiarity with the Bank's procedures and requirements.
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