THE Tunisian parliament has approved a new loan agreement that will provide funding to support major infrastructure upgrades on the Tunisian National Railways (SNCFT) network.
The finance and budget committee has approved the Dinars 16m ($US 51.9m) loan in Kuwaiti currency, agreed last year by the Tunisian government with the Arab Fund for Economic and Social Development. The funding will support upgrades intended to increase capacity for moving phosphates by rail.
The production and export of phosphates have been limited by a lack of rail freight capacity, with the state-owned Gafsa Phosphate Company (CPG) producing an estimated 3.9 million tonnes in 2025, compared with 8 million in 2011.
The first phase of the upgrade programme is costed at $US 138m and includes 190km of track renewals on lines 5, 14, 17 and 21. Technical studies have been completed and contracts are due to be awarded following a tender that closed on March 24.
Costing $US 546m, the second phase comprises track renewals on a further 415km, as well as work to upgrade tunnels, stations and signalling. The programme also includes the construction of new maintenance facilities and the procurement of specialised equipment, as poor wagon availability is also contributing to the lack of freight capacity.
Upgrading the network is also expected to improve the financial position of the national operator, with phosphate traffic currently accounting for 40% of SNCFT revenue. Several issues remain unresolved, however, including the timescale for completing work and securing additional funding.
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