The government’s ambitious Ninth Economic Plan, running from 1997 to the year 2001, stipulates a growth rate of 6% a year.  Inflation is planned not to exceed 4.1% and the budget deficit to be maintained at 2.4% of GDP.  Investment rates are slated to rise from 24.3% to 27.6 % of GDP.   Significantly, this Plan projects annual spending on environmental projects to comprise 4% of the budget, or about $350 million a year. 

The Tunisian Government is undertaking a wide range of structural reforms to move toward a more market-based economy.  These steps include liberalization and privatization, which multilateral institutions have suggested need to be accomplished in a more rapid manner. 

Tunisia hosts four million tourists a year, making this its largest foreign exchange earner.  A clean environment will be essential to continue to expand this sector. 

ENVIRONMENTAL PROBLEMS

As a result of rapid urban growth and uncontrolled economic activities, Tunisia faces problems of land degradation, fresh water conservation, industrial and air pollution, waste disposal, and maritime pollution. 

Land
Safeguarding Tunisia’s arable land is the government’s top environmental priority, as well as protecting against overgrazing, desertification and soil erosion which threatens as much as half of the country’s territorial land.  By some estimates, Tunisia is losing over 20,000 ha annually to erosion and desertification. 

Water
Increasing water needs and the danger of periodic drought leave Tunisia vulnerable to water shortage.  Growing demand has already led to saline intrusion into some groundwater sources. Conservation, treatment, wastewater reuse in agriculture, and desalination are remedial options the government is pursuing.  Within the Tunisian government SONEDE (the National Water Authority within the Ministry of Agriculture) is responsible for water stockage and delivery while ONAS (the National Sewage Agency within the Ministry of Environment) handles sewage, wastewater treatment, and prevention of watershed pollution. 

Air and Industrial Pollution
Trucks and cars are responsible for two-thirds of Tunisia’s air pollution.  Thermo-electric power generating companies are the largest industrial air polluters, with cement factories, paper mills, oil refining, chemical industries, food companies and steel producers also contributing.   Most water contaminated by industrial processes is dumped, untreated, into the sea. 
Tunisia is fairly advanced in terms of monitoring atmospheric pollution levels.  Four fixed-site and mobile air quality monitoring stations are operating and twelve more are planned to be in place by 2001. 

Solid Waste
Municipalities collect over 1.2 million tons of household garbage annually.  Problems with solid waste exist at the collection and disposal levels.  The existing 66 dumpsites are uncontrolled and solid waste is not segregated before collection.  Industrial and medical wastes are often disposed of with municipal refuse. 

Maritime Pollution
Phosphate mining tailings dumped into the Bay of Gafsa gravely harmed the marine environment there, crippling the local fishery and galvanizing Tunisian awareness of environmental issues.  With 6 million tourists expected annually by the year 2001, most coming to enjoy Tunisia’s 1,300 km. of shoreline, maritime protection is an important priority. 

ENVIRONMENTAL BUSINESS OPPORTUNITIES

Tunisia is one of the more advanced countries in the region in terms of its commitment to the environment.  The country has made significant strides in developing legal and institutional mechanisms designed to protect the environment while encouraging sustainable economic growth.  Difficulties that remain include inter-ministry conflicts over management and control. 

The Ninth Economic Plan contains many potential opportunities for U.S. environmental businesses.  The government has expressed interest in acquiring U.S. environmental technology and expertise.  In the past, however, European and Japanese firms have had a competitive advantage by offering better and longer financing terms. The most promising opportunities are in wastewater, water supply, solid waste, industrial pollution control, pollution monitoring equipment, energy efficiency and alternate energies, desertification control, and environmental consultancy. 

The Water Sector (Treatment and Supply) 
On the treatment side, ONAS plans to construct 16 wastewater plants by the year 2001 and an additional 22 by the year 2006.  The largest of these is Tunis-West valued at approximately $45 million.  ONAS is expected to need foreign technology to furnish laboratories, provide cleaning and purification equipment and to furnish wastewater treatment facilities.  Treated wastewater is likely to be a major future source for irrigation water, giving preference to water treatment techniques that generate water suitable for agriculture. 
Pretreatment of industrial pollutants and tertiary wastewater treatment also provide potential markets. 

On the supply side, the Ninth Economic Plan foresees construction of 10 desalination plants and four dams.  Bids have already been called for the first two desalination plants, in Djerba and Zarzis.    The need to augment urban and rural water supply to meet growing demands also provides a potential market for piping and equipment and expansion of networks, although the civil engineering works will remain largely dominated by Tunisian companies. 

Solid Waste
The solid waste sector is anticipated to be one of the most important areas for environmental intervention over the next 5 years.   The Ministry of Environment and Land Use Planning established a national program for managing solid wastes (PRONAGDES).   Under this program the Tunisian Government plans to build 29 controlled sanitary landfills by the year 2006, along with garbage sorting and transfer sites.  The nine largest are to be completed by 2001.  PRONAGDES also calls for the cleanup of existing open landfills.  The government is encouraging private funding for and management of these sites.  Many municipalities have already moved to privatize trash collection services. 

Industrial Pollution Control and Monitoring
The government has established special funds (FODEP and FOCRED) designed to assist industries in reducing or eliminating pollution.  Effective U.S. technology, either for converting industrial processes or for “end-of-pipe” solutions, can find a market.  In addition, with Tunisia planning to add 12 more air quality monitoring stations by the year 2001, U.S. monitoring equipment may find a niche. 

Energy Efficiency and Alternate Energies
Foreign companies able to design and implement changes in industrial processes that effect energy savings and reduce pollution will find a ready market.  Tunisia also requires engineering studies and equipment designed to save energy and increase urban transportation efficiency.  Alternative energy, particularly solar energy equipment designed to make use of Tunisia’s geographic advantages, will be welcomed. 

 Combat and Control of Desertification
As a high priority for the government, this issue receives substantial resources.  There are opportunities for foreign companies in the sale and supply of services and technical equipment, including studies, field equipment, laboratory and measurement instruments, and remote sensing. 

Environmental Consulting
New industrial projects are required by Tunisian law to conduct Environmental Impact Assessments prior to implementation. In 1996 the government reviewed 1,165 of these and accepted 63%.  U.S. firms interested in EIA consultancies might consider forging links with local companies and engaging in joint endeavors. 

CONTACTS

Ministry of Environment and Land Use Planning 
Centre Urbain Nord 
1004 Menzah 
Tunis 
Tel:  (216-1) - 703161 
Fax:  (216-1) - 702431 

Contact: Mr. Fayez Ayed (Chef de Cabinet) 

Ministry of Environment and Land Use Planning 
Office National De L’Assainissement  (ONAS) 
32, Rue Hedi Nouria 
1001 Tunis 
Tel:  (216-1) - 343282/ 343/819 
Fax:  (216-1) - 350411 

Contact: Mr. Abderrahmen Gannoun (Director General) 

Ministry of Environment and Land Use Planning 
Agence Nationale de Protection de l’Environnement (ANPE) 
Rue du Medine-1002 Tunis Belvedere 
BP 52-1002 
Tunis 
Tel:  (216-1) - 841193, 842607, 843058, 847122 
Fax:  (216-1) - 848096 

Contact: Dr. Mounir Ferchichi (Chef du Departement, Dechets Solides & Embellissement) 

Embassy of the United States 
144, Av. De la Liberte 
1002 Tunis Belvedere 
Tel:  (216-1) - 782-566 
Fax:  (216-1) - 789-719 

Contacts: 

Mr. David T. Nobles 
Economic Officer 

Mr. Bechir Ouederni 
Commercial Specialist 

Mrs. Charlotte Joulak 
Commercial Specialist 

Mr. Fathi Kraiem 
Urban Environmental Advisor/ USAID