The loan will be used to modernize all infrastructures and equipment of the canal to meet the increasing demand in potable and irrigation water.
The canal provides the cities of Tunis, Cap Bon, Sahel and Sfax with potable water. It also supplies water for the irrigation of 19,000 hectares of agriculture land in El Mghira, Mornag and Cap-Bon.
Stretching on 120.165 km, the canal is under the authority of the ministry of agriculture and is managed by Société d’Exploitation du canal et des Eaux du Nord (SECADENORD).
The grant is part of a set of financial agreements signed between Tunisia and Germany in April 2019. Under the agreements, the EU powerhouse is to allocate the North African country €264.5 million, including €12 million as donation.