| Country : | TUNISIA |
| Type of project : | Loan |
Financing Tunisia’s first BOT project in the transport sector
Context
Tunisia’s airport capacities have reached saturation point, this is particularly true during the tourist season. The authorities have consequently launched an international bid invitation for private operators to build and operate a new airport in Enfidha and to operate the existing airport in Monastir. TAV Group was selected among three bidding firms and was awarded the two 40-year concession contracts in May 2007 and January 2008.
Targets
The project aims to both modernize Monastir airport and raise Enfidha airport’s passenger handling capacity by 7 million passengers annually. Enfidha will consequently become Tunisia’s biggest international gateway.
Project description
Ben Ali International Airport will comprise a 93 400m2 terminal, a 3 300m long and 60m wide runway capable of receiving all types of aircraft (including B747s and A380s), an 85m control tower, aircraft parking areas able to receive 14 aircraft simultaneously in addition to the terminal’s 18 passenger boarding bridges, a presidential wing and the creation of a parking area for 1 000 vehicles.
It is built and operated by TAV Group which is a reference in terms of building and operating. The company is based in Turkey and operational teams in Tunisia will be able to benefit from its experience.
The total project cost stands at EUR600M, 30% of which is financed by equity and 70% by a loan with a maturity of 14 to 20 years. PROPARCO is contributing EUR30M of financing alongside other development institutions (IFC, EIB, ADB, OFID) and international banks.
This operation provides an example of the counter-cyclical role PROPARCO plays as an EDFI: it is continuing to support mega infrastructure projects during the financial crisis and relieves the balance sheet constraints of certain commercial banks. By participating in this project, PROPACO and AFD are underscoring their role as long-term development partners, specifically for PPP projects. Moreover, the project falls within a framework of South-South, Turkey-Tunisia, cooperation with a recognized airport operator with which we built up highly satisfactory relations during a previous operation in Turkey.
Impacts
The project is part of the 11th National Five-Year Plan which combines gradually opening up the economy and continuing to alleviate public finance. The project will:
- support the development of the tourist sector which provides one of the main sources of foreign currency and is one of the country’s main employment areas,
- make a considerable contribution to the State budget during the forty years of the concession (over 800 million euros),
- create over 7 000 direct jobs during the airport building and operating phases,
- pursue the Tunisian State’s policy to delegate public transport infrastructure in order to support sizeable investments.
Dates and amounts
Signing of financing agreements: February 2009
Financing: 30 million euro direct loan
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