The Assembly of People’s Representatives (ARP) approved, during a plenary session held on Saturday afternoon, a bill approving a loan agreement with the African Development Bank (AfDB) worth $87.100 million, equivalent to TND 267.56 million, to Tunisia to help fund the Cereal Sector Inclusive and Sustainable Development Support Project (PADIFIC).
The bill was approved with 84 votes for, 2 against and 18 abstentions.
This loan will be repaid over 24 years, with a 4.5-year grace period, and a variable interest rate, which will be calculated by the Bank on each payment date, starting on July 15, 2028.
This loan will allow the AfDB to contribute to 74% of the cost of the PADIFIC project, while the State will contribute the sum of $30.421 million (26% of the cost), which will be used mainly to pay the salaries of the executives involved in the project, and to acquire the necessary logistical equipment, transport and storage facilities.
The total cost of the project amounts to $117.521 million excluding taxes, the equivalent of around TND 361 million.
Implementing PADIFIC will allow Tunisia to increase durum wheat production by 1.6 million quintals, barley by 1.2 million quintals, vegetable oil by 18,000 quintals and cattle cake by 42,000 quintals. It will also help the country reduce post-harvest and storage losses, saving around 115,000 quintals of cereals.
The project will also reduce post-harvest losses through the construction of a new silo in Djebel Djelloud and the rehabilitation of two port silos in Rades and Bizerte.
Besides, it will reinforce cereal transportation by rail, requiring the acquisition of 30 new wagons.
Furthermore, the project aims to support the capacities of stakeholders in the grain sector, enabling them to enhance their resilience to external shocks and climate change.
In essence, PADIFIC intervenes to support the pre-production phase of the grain sector and finance grain imports at a total cost of approximately $66.12 million.
Source: Agence Tunis Afrique Presse