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INFRASTRUCTURE

Tunisia has devoted considerable efforts to the establishment of an adequate infrastructure.

The railway network totals 2,475 km (1,500 miles) and covers the country from North to South. It is connected to both the Algerian and Moroccan railway networks.

The road network stretches over 31,000 km (18,600 miles). A 150 km (90 miles) highway system links Tunis, Hammamet and M'Saken, and plans for further extensions to the South and North of the country are underway.

TRANSPORTATION :

The transportation sector plays a vital role in realizing the objectives and choices of development, in supporting productive sectors and reinforcing their competitive capacities as well as in improving the citizens' standard of living.

The public sector accounts for about 70% of the production of the transportation sector. In 1999, the sector showed a growth of 6.5% and a value-added of 1444.3 millions dinars out of 9432.8 million dinars at current prices for the entire service sector (2000 figures) This performance is due to the opportunities provided in sea transportation, to dynamism at the level of road transportation and air transportation linked with the development of the tourist sector.

Supervision over the sector is entrusted to the Ministry of Transport whose mission is to provide the country with a global, economical and safe transportation system and to control its smooth functioning so as to make it an essential factor of economic and social development.

The transportation sector is composed of three sub-sectors: land transportation, merchant shipping and civil aviation.

Land transportation :

The formulation and implementation of the land transportation policy are entrusted to the General Directorate of Land Transportation (DGTT) which is responsible mainly for organizing the sector, developing the regulation and tariff policy of land transportation, seeing to their implementation, ensuring the technical supervision of land transportation enterprises under the Ministry of Transport as well as relations with international bodies, and negotiating international conventions and bilateral agreements on the subject.

Those missions are exercised through the following main fields of activity:

  • Passenger transportation
  • Goods transportation
  • Road traffic

Passenger Transportation :


1- Urban and regional transportation

In the Tunis District (Tunis, Ben Arous, Ariana and Manouba), the transportation service is operated by three public companies (SNT, SMLT and SNCFT) and two private companies (TUT and TCV) as well as by taxis and rural transportation vehicles.
As for inland, urban and regional public transportation service is operated by the Regional Transportation Companies (SRT's) which serve the territory of 20 governorates out of 24, the SNCFT which operates the suburban railroad services between Sousse, Monastir and Mahdia on the electrified line called "the Sahel Metro" as well as by taxis and rural transportation.

2- Interurban transportation

Interurban transportation is defined as transportation on routes beyond the area of urban and regional transportation. It is provided, in particular, by public operators such as the SNTRI, the 12 SRT's and the SNCFT and by private operators such as car rentals and "4-door sedan" taxis.

Goods transportation :

Goods transportation is governed by Law 97-56 of July 28, 1997 organizing the goods transportation activity.

1 - Goods transportation for oneself: This type of trasnportation is carried out by natural or legal persons for themselves under conditions set by the Transportation Ministry. Since 1992, this kind of transportation has been deregulated whatever the number and capacity of the vehicles.

2- Goods transportation for others: This type of transportation is subject to the registration formality for vehicles whose authorized gross weight (AGW) is over 12 tons. The registration is made on two registers. The register of natural persons (license for on vehicle) and the register of legal persons (license for several vehicles). Registrations are subject to certain conditions set by the Transportation Ministry. In addition, the utilization of any vehicle whose AGW is above the 12-ton threshold is subject to obtaining a utilization card delivered by the services of the Ministry of Transport.

3- International road transportation
International road transportation of goods (TIR) is governed by international conventions (CMR, TIR and UMA conventions), bilateral agreements (20 agreements of which 10 are in force, i.e. Jordan, France, Italy, Germany, Great Britain, Belgium, Sweden, Switzerland, Spain and Hungary) and Law 97-56 of July 28, 1997 organizing goods transportation as amended by Law 99-91 of August 2, 1999.

4- Transportation of dangerous goods: This type of transportation is governed by Law 97-35 of June 2, 1997 relative to road transportation of dangerous goods. This law consists in laying down rules to prevent any risks to the safety of living beings and the environment.

Road Traffic :

The sphere of road traffic is governed by the new Rules of the road approved under Law 99-71 of July 26, 1999 and its enforcement decrees, issued for the most part in January 2000. In this field, in addition to the technical control of vehicles, the operational tasks pertaining to driver's licenses, registration, acceptance, certification of vehicles and driving instruction have been provided by the Agence Technique des Transports Terrestres (Technical Agency for Land Transportation) since 1998.

Civil Aviation :

The General Directorate of Civil Aviation (DGAC) at the Transportation Ministry is mainly responsible for:

  • Preparing and implementing the State policy in the sphere of civil aviation;
  • Organizing the aeronautical sector and contributing to its development;
  • Ensuring the safety and regularity of aerial navigation and controlling the equality of air transportation services and particularly their facilitations;
  • Delivering the agreements and licenses necessary for the creation of aeronautical enterprises;
  • Conducting technical investigations into plane crashes and incidents and making the necessary recommendations;
  • Supervising the enterprises and bodies working in the sphere of civil aviation, namely: the Office of Civil Aviation and Airports (OACA), Tunisair, Nouvelair Karthago Airlines , Tuninter (which became Sevenair on July 7, 2007), Tunisavia,MAS, the aeronautical training centers and the aerial work companies.

Aeronautical activities

Air transportation

Transportation

Regular

 Non Regular

 

International

National

International

National

Passengers Operated by Tunisair and Tuniniter Operated by Tuniniter Operated by Tunisair, Tuniniter and Nouvel air Operated byTunisavia & Tuninter
Goods Operated by Tunisair, MAS & Tuninter Operated by MAS Operated by MAS Operated by Tunisavia, MAS & Tuninter


Aeronautical transportation
This heading is about aeronautical activities other than passenger and goods transportation, which are exercised under authorization of the aeronautical authorities.
Aerial work:

  • Agricultural spraying work
  • Air photo
  • Air surveillance and control
  • Medical evacuation
  • Sky advertising

Promotion of tourist activities

  • Leisure activities, promotion of tourist activities and aerial sport by means of hot-air balloons.
  • oLeisure activities, promotion of tourist activities and aerial sport by means of microlights.
  • Leisure activities, promotion of tourist activities and aerial sport by means of parachutes.
  • Leisure activities, promotion of tourist activities and aerial sport by means of airplanes whose weight does not exceed 5.7 tons.

Aeronautical training:

This is the training of civil aviation employees holders of a license.

Ground assistance

Catering preparation

Services offered

The main two public air operators are Tunisair and the Office of Civil Aviation and Airports. The Tunisair company is the first airline company of the country, providing transportation of passengers (regular and charter flights) and freight. It serves over 55 international destinations. Its fleet is being renovated and has a total of 24 aircraft.

The Office of Civil Aviation and Airports (OACA) maintains, in particular, the control of aerial navigation, the operation, improvement and development of airports, and the issuance of all the documents required for aeronautical staffs, aircraft and aerial navigation.

MERCHANT NAVY

The subsector of the merchant navy has witnessed in recent years structural transformations. Several actions have been carried out at the level of maritime and port regulation and organization.
a) The General Directorate of the Merchant Navy (DGMM) has
entrusted a number of its attributions to the Office of the Merchant
Navy and Ports and is mainly in charge of:

  • Participation in the development of the general policy of sea transportation and ports.
  • Preparation and implementation of regulations on sea transportation.
  • Relations and links between Tunisia and foreign countries at the level of bilateral cooperation and international relations.

b) The Office of the Merchant Navy and Ports (OMMP) is governed
by law 98-109 and is in charge of:

  • Exercising the powers entrusted to the maritime authority and administration as well as to the port authority.
  • Operating and ensuring the functioning, maintenance and development of commercial sea-ports.
  • Commercial sea-ports whose list is fixed by Decree 2000-1001 of May 11, 2000, are attached to the OMMP with the exception of the port of Gabes which is attached to the Equipment Ministry but managed by the OMMP, and the port of La Skhira which is managed by TRAPSA.

c) The Tunisian Navigation Company (CTN) and the Kerkennah New Transportation Company (SONOTRAK) provide public sea transportation in Tunisia along with the other private sea transportation enterprises.

The national fleet is comprised of 18 ships of which 9 belong to private ship-owners.
d) Port handling is provided by the Tunisian Company of
Lighterage and Handling which operates in the commercial
seaports.
e) Forwarding agents and merchant navy professionals are
governed by Law 95-32 of April 14, 1995 and Law 95-33 of April
14, 1995.

Reform in the sector of sea transportation and ports Regulations
Promulgation of Law 98-21 of March 11, 1998 relative to international multimodal transportation of goods which sets the rights, obligations, responsibilities of the multimodal transport operator, the responsibilities of the shipper, the conditions of exercise of the activity of international multimodal transport of goods and contractual clauses.

2- Promulgation of Law 98-109 of December 28, 1998 under which OMMP is assigned to exercise the attributions entrusted to the maritime authority and administration (new attributions).

3- Publication of the decree of the Ministries of Transport and
Trade, dated March 9, 1999 approving maximum rates for port
handling.

4- Publication of the decree of the Ministries of Transport and
Trade, dated March 9, 1999 approving maximum rates for the
services of consignment of ships.

5- Promulgation of the new Code of commercial sea-ports (Law 99-25 of March 18, 1999) which set general rules for ensuring the security, protection and conservation of commercial sea-ports and the conditions of their operation.

Organization

1 . Reorganization of the professions of the merchant navy to foster the création of private maritime and port enterprises.

2.Unity of responsibility: the handling contractor is in charge of ail the opérations of cargo handling and consignment within the port compound.

3. Institution of free compétition in ail ports to improve their
competitiveness.

4. Introduction of franchise as a new form of utilization and
opération of the public domain of ports and port equipment.

5. Reorganization of the employment régulations in the ports:

  • Work in the ports is so organized as to ensure continued port opération 24 hours a day and 7 days a week.
  • Institution of rules of professional qualification and work safety in the ports.

6- Exercise of maritime and port activities:

  • By simple déclaration to the authority for the professions of the
  • merchant navy, the forwarding agents, and the customs brokers.
  • By registration or a register kept by the Port Authority for other professionals (warehousing and checking off, guarding of ships and goods...)

7- Ports advisory structures

1.Creation of a Ports National Council (see "The Officiai Gazette", JORT 74 of September 14, 1999).

2.Creation of a Port Community Committee (see "The Officiai Gazette", JORT 66 of August 18, 2000).

3.Creation of a Port Security Committee (see "The Officiai Gazette", JORT 69 of August 27, 1999).

The main purpose of their structures is to consolidate the ties among ail administrations, operators, and users.

Transport :

The transport sector, like all other important sectors, has witnessed a tremendous growth and modernization. Indeed, the transport sector's development has been outstanding during the last couple of decades reflecting the political commitment and choices to enhance its structure in order to help it fulfil its key role as the backbone of the national modernization endeavours and reforms.

Developing the legislature, consolidating investments and restructuring
During the last two decades, the reforms undertaken in the transport sector have focused on the liberalization of activity branches, upgrading businesses, launching plans to upgrade ports, improve quality and safety, strengthen infrastructure and develop the legal and institutional frameworks.

Its legal mechanism was developed to meet the needs of the sector and safety standards. The provisions making up the road transport code restrict the interference of the state limiting it to the elaboration of general policies, fixing rates and financing for public passenger transport, the setting up of regional bodies in charge of planning and organizing urban and regional passenger transport and harmonizing the ground goods transport conditions at the national and international levels.

On another level, focus has been on the need to simplify the procedures by generalizing the use of guidelines in all activities except for the use of non-regulated public transport such as taxis, long distance taxis and rural transport taxis, the promulgation of the legislature on road safety as well as the legislature related to the Trade Ports Code and Civil Aviation Code .
  • The liberalization of transport activities

The liberalization of activities is reflected in four concessions to private operators for the operation of three urban transport networks in Greater Tunis, the setting up of an inter-urban transport company and the birth of a new air transport company Carthage Aviation operating in charter flights. A private aviation training centre and a private aircraft maintenance centre have equally been set up. In the maritime cruise industry, a concession for the construction and operation of a station at la Goulette is now operational.

  • Upgrading transport companies

Within the upgrading programme, the State has signed contracts with the majority of the sector's companies focused on cleansing their financial assets and reviewing the operation of the network stressing transport activities and sparing related activities. Within this framework, the upgrading of Tunis Air, the national flag carrier, included the setting up of specialized branch companies operating in ground services, aircraft maintenance and a concession to a private operator for sales on board. This restructuring is the prelude to the progressive liberalization of the air transport sector with Arab, African and European countries.

  • Upgrading Ports

As far as ports are concerned, the objectives of upgrading projects were to change deeply the operation methods in the ports by suppressing the Dockers' labour regime and substituting it by the Labour Code and attributing concessions for the exploitation of wharfs to national companies such as the Groupe Chimique, the Cereals Department, STAM: the National Handling and Lighterage Company and by simplifying administrative and port procedures in order to ensure more fluidity in the removing goods from the docks which helped reduce their docking time at ports from an average of 11 days to 7 days currently.

  • Improving quality and safety

Interest was in all the services delivered by the sector's companies to their customers mainly at the level of punctuality and regularity, management, cleanliness of the equipment and premises and receiving users.

The 10th Plan has equally been characterized by an improving safety level through the ratification of international agreements in the filed, the updating of the traffic regulations, the setting up of national councils and commissions in the field as well as the elaboration of a safety system in ports and airports to which we add training, reorganizing the driving schools and improving the technical control services.

Results by sector

  • Air transport


Since the 7th November Change, air transport benefited from regular follow up by President Ben Ali. Investments in the sector have increased substantially. Important strategies and mechanisms have been developed aimed at promoting the sector's efficacy and adapting it to the various needs of development and seeking to consolidate its position internationally in the light of the rapid and deep changes the sector has undergone during the last few years

The air transport sector has witnessed an important growth since 1988 characterized mainly by the increasing number of Tunisian companies operating in air transport, the development of the number of crafts, the strengthening of port facilities and infrastructure as well as security and safety in ports and airports. All these improvements have contributed to the dynamics of the sector improving connections between Tunisia and the majority of European, Arab and African capitals.

Globally, air transport has made important breakthroughs in terms of investments allocated to the management and development of airports to cope with the quantitative and qualitative mutations of its activities in the country and internationally. As an example, the number of air travellers increased from 4.4 million in 1987 to 10.5 million in 2006.

The airport network is made up of seven airports considered as the main access gateways to Tunisia as they are international airports capable of receiving the biggest and most advanced of airplanes thanks to adequate infrastructure and state of the art equipments.

  • Maritime transport


During the last 21 years, maritime transport has witnessed important qualitative changes thanks to reforms aimed at liberalizing the services, introducing competitiveness, strengthening infrastructure and reviewing the ports management in order to modernize it, improve the quality of services and control costs.

Among these achievements we note:

- The traffic of goods in all the Tunisian ports increased from 18.4 million tons in 1987 to almost 30.5 million tons in 2007 marking an annual average growth of +3%
- Increases in the general traffic of goods from 2.4 million tons in 1987 to 6.5 million tons in 2007 with an annual average growth rate of 5.2%. Since 1987, the Tunis La Goulette-Rades port has witnessed an important evolution in the traffic of goods and ensures at the moment the traffic of 92% of containers and 90% of trails.
- The number of containers in all ports increased from 69,500 units in 1992 to almost 374,500 units in 2007 (with an annual average growth of 11%) while the traffic of trails went up from 45,000 to 100,000
- The number of passengers went up from 269,000 in 1987 to 678,000 in 2007 (more than 5% average yearly growth)
- The number of tourists leaped from 53,000 in 1987 to 647,000 in 2007 (marking an annual growth rate of more than 13%)

The sector equally benefited from important investments reflected in the following results:

- Renewing and modernizing the TN fleet through the acquisition of two ships Ulysses and Salambo 7 with a global capacity of 2000 metric tons each, as well as a ferry The Carthage for the transport of passengers and vehicles with a capacity of 2200 passengers and 600 vehicles.

- The consolidation, rehabilitation and renewal of port facilities
- Equipping the OMMP (National Merchant Marine and Ports Bureau) with 11 new port engines and anti-pollution equipment
- Modernizing STAM's lighterage and handling equipment
- The acquisition of three new units by the Kerkennah Transport Company; Khyranis, Hached and Kerkennah.

The major reforms undertaken in this field involved reviewing and updating the legal and institutional framework for the operation of ports through the promulgation of a new Trade and Maritime Ports Code aimed at strengthening security and safety in ports, attributing an operation concession in the public ports and the setting up of the OMMP, the Merchant Marine and Ports Bureau.

  • Road transport

The road transport sector has witnessed an important development from 1987 to 2007 as reflected in the consolidated fleets of private and public road transport companies as well as the increasing number of passengers. During the same period, the number of taxis, intercity taxis and rural transport taxis increased considerably. Besides, the total number of vehicles in Tunisia went up from 350,000 in 1987 to 1,200,000 in 2006
Program " For Tomorrow's Tunisia ".

The President's programme for "Tomorrow's Tunisia" (2004-2009) includes a number of plans and reforms to develop the sector and strengthen its contribution to the national economy and adapt it to international changes. Action plans in store can be summed up in the following points:
- A modern infrastructure for a new economy by developing port equipments, airports and the railways;
- Making of Tunisia a regional trade and services centre will involve the development of a multimodal transport system and developing logistics spaces;
- Promoting public transport in big cities while giving priority to railway transport as a strategic choice.

The rapid growth of trade exchanges resulted in important changes at the level of the transport system as is the case with the emergence of the "door to door" transport. There followed a spectacular growth of the sector, now an important source of growth and a vehicle for the promotion of employment. In fact, the sector contributes at a level of 6% to the GDP using 15% of investments 53% of which come from the private sector. It ensures the direct employment of 120.000 people, which represents 4% of the total active population.

Major projects scheduled during the period of the XIth Development Plan 2007-2011

  • The railways

Projected loans benefiting the railways sector during the XIth development Plan (2007-2011) amount to 1.782 million dinars compared to 409 million dinars in the Xth Development Plan. These would involve the creation of a new company for the operation of the rapid railways network and the launching of the extension of priority sections of this network: (Place Barcelona-La Manouba over 11.3 kms, Place Barcelone-Ezzahrouni over 6.3 kms and the North-South axle of Bir El Kassaa-Bourjil over 11.5 kms) for a global cost of 600 million dinars.

Other infrastructure projects realized by the Metro Company for 410 million dinars include the completion of the network extension works to El Mourouj and the Manouba University Campus, the upgrading of the network and increasing the capacity of the common sections, renewing the Tunis-La Marsa line and acquiring 55 metro cars to develop the capacity of this network.

Total investments mobilized by the SNCFT will reach 772 million dinars to be allocated for the finalization of the Tunis-Borj Cedria railway line (23 kms), renewing the Tunis-Ghardimaou line, the rationalization of the transport of phosphates and the acquisition of new passenger and goods transport equipment

  • Road transport

The 11th Development Plan projects investments of 2,057.5 million dinars in the road transport network compared to 1,558.2 million dinars during the Xth Development Plan. These loans will be used for the acquisition of 1770 new buses in order to renew and develop the fleet, the construction and management of stations and technical control centres. The small vehicles and merchandise transport fleets will equally be renewed.

  • Maritime Transport

For this module, the XIth Plan projects 1003 million dinars to be used for the acquisition of a large ship by the CTN and a container ship with a capacity of 600 units, two units for the Sfax-Kerkennah line as well as developing logistics zones near the industrial and trade centres, upgrading ports, completing the construction of a polyvalent wharf at the Rades Port, dredging the ports of Gabes, Sfax and Zarziz, the launching of works for the construction of deep waters port (concession), completing the cruises project at La Goulette Port and the launch of a similar project in Bizerta.

  • Air transport

Air transport will equally benefit from the acquisition of 16 Airbus planes by Tunisair, as well as the development of infrastructure involving the construction of the new Enfidha airport in the Eastern Central part of Tunisia. The new airport will have an initial annual capacity of 5 million passengers (to be gradually upgraded to 20 million passengers/year) and which will boost the country's capacity as a regional trade and services centre.

Housing and Infrastructure

The housing sector has been, since the November 7, 1987, Change and within the framework of the socio-economic development strategy, a subject of the highest interest because of its direct impact not only on the stability of families, but also its positive role on employment.

80% of Tunisian households own their houses.

Policies conducted in this field have made it possible to achieve noteworthy performances. The general housing and population census conducted in 2004, underlined an important increase in the actual real estate patrimony. 2.5 million housings were registered, as against 1.86 million in 1994, an annual growth rate of 2.95% throughout the decade 1994-2004, including the construction of 63,500 housings per year. This development is all the more significant that during the same period the number of families grew by only 2.52%.

The Housing Sector

This quantitative evolution has gone together with an improvement in the quality of the housing. The proportion of rudimentary accommodations has largely regressed by a rate of 2.7%, in 1994, to 0.8% of the housing patrimony in 2004, thanks not only to the interventions of the National Solidarity Fund (Fund 26-26), but also to the increase in the per capita income.

The average habitable space has also witnessed a net increase. Accommodations including three bedrooms, or more, represented 66.5% of the total number of homes, against only 56.5%, in 1994. The same decade was also marked by an increased inclination to vertical housing. The proportion of apartments, in comparison with the total number of accommodations, grew from 5.9%, in 1994, to 7.5% in 2004.

  • Achievements of the VIIth & VIIIth plans (1987-1991 & 1992-1996)


During the decade 1987-1996 covered by the VIIth and the VIIIth plans, investments of an amount of 6,078 MD were devoted for the housing sector compared to the 3,010 MD for the previous decade 1977-1986, that is to say an increase of 100%. The number of accommodations reached 427,000 for the decade 1994-2004 against 290,000 in the previous decade.

  • Achievements of the IXth plan (1997-2001)


In light of the urban strategic study ordered by the Head of State in order to undertake compulsory provisional projections, to enter into the 21st century through the evaluation of a strategy applied since 1988 in the housing sector, a development plan for cities has been implemented; it aims at guaranteeing a decent housing, restructuring urban space, improve urban infrastructure, so as to better play its economic and social function.
This plan is based on a number of orientations among which:

- Increase the level of the social housings for rental in order to reduce the higher demand for new housings for sale.
- Granting priority to projects relative to the improvement of the integration of popular areas in such a manner to improve the living conditions of their inhabitants.
- Pursuing the integration effort of popular areas in the urban fabric through first and second generation projects relative to the popular areas in order to raise at least to two million the number of inhabitants benefiting from this program.
- Sustained management of real estate resources and equipping land with necessary commodities while preserving environment.
- Modifying the financing scheme and reducing the unitary cost of housings so as to adapt it to the means of the average social classes along with maintaining the home savings plan.

  • Achievements of the Xth plan (2002-2006)

The period of the Xth Plan was marked by a number of characteristics, which are:
- Improvement in the quality of the housings and lowering of the proportion of rudimentary accommodations;
- Maintaining the proportion of families owning their home and encouraging vertical housing;
- Increased interest for safeguarding the existing land patrimony;
- Redrafting the legal framework governing the fund for the promotion of the accommodations for salaried employees (FOPROLOS), through the introduction of a new category, and amendment of the law organizing the National Fund for Improving Housing;
- Undertaking a study on factors behind the increase in the value of the social or economic housing in order to modulate their cost according to the financial possibilities of the limited revenues categories.

  • Quantitative achievements

Some 255,400 housings were built during the period of the Xth Plan with investments reaching 6,739 million Dinars, respectively 94 and 89% of the figures mentioned in the Plan. Out of this total, 217,000 accommodations were built by private persons (families and private real estate developers). Public real estate developers realized, on their part, 12,400 accommodations for investments estimated at 403.7 million dinars, of which are for the benefit of modest income people.

As regards the offer of land suitable for building, the Land Housing Agency (AFH) acquired about 950 hectares. It put 862 hectares on sale during the period of the Xth Plan, which is equivalent to respectively 69 and 75% of the figures forecast by the Plan. However, most the land suitable for building had been acquired by the private sector.

As far as the financing of the housing sector is concerned, the Housing Bank earmarked 1,671 MD out of which 850 MD as pre-financing of the projects of real estate developers, and 821 MD as loans to private persons (among which 41% within the home-savings system for the purchase or the building of an accommodation).

The cost of FOPROLOS interventions reached 139 MD, and those of the two national funds for social security, 229 MD. The commercial banks were not left out. Their interventions registered a substantial increase during the last years of the Xth Plan. The total amount of the banking loans granted in the framework of the pre-financing of the projects of private real estate developers, or of private persons, for the acquisition or the building of an accommodation, amounted to 1 billion dinars.

Concerning the safeguarding of the existing real estate patrimony, the implementation of the 3rd and 4th stages of the project, known as "Oukalas" of the Tunis Medina, financed within the framework of the international cooperation, was pursued during the period of the Xth Plan. Preliminary works of the feasibility study pertaining to the rehabilitation and renovation project of the "Little Sicily" district, in Tunis, as well as the interventions of the National Fund for Improving Housing, have also been carried out.

On the other hand, and within the framework of the improvement of the situation of accommodations built on ancients plots of land in order to ensure their reintroduction into the economic circuit, SNIT had proceeded to the straightening out the situation of almost 48,000 housings , out of a total of 53,000 concerned accommodations.

  • Prospects

The 5 year period (2007-2011) forecasts the implementation of 300,000 housings at an investment amount reaching 10,100 MD distributed as follows:
- 260,000 housings to meet additional demands;
- 10,000 housings to meet increasing in the demand;
- 30,000 housings to replace old ones.

Road and construction

infrastructure

Tunisia of the new era has granted top priority to infrastructure in the sector of roads and construction works as a supporting factor to productive sectors and to economic activity in general. The impact of the infrastructure is indeed evident in terms of input to the increase of economic competitiveness, to the promotion of employment, even to the growth of production sectors, including at the levels of developing exports and attracting investments. The infrastructure is also at the core of regional development, considering its positive impact, to say the least, on the circulation of persons and goods.

  • Achievements of the Xth Plan (2002-2006)

A - Qualitative achievements

The period of the Xth Plan was marked by the priority that was given to programs adapted to the requirements of the economic and social development. The stress was placed on the following points:

- Continued upgrading of the road network, particularly by increasing the proportion of roads that are more than 7 meter wide, the consolidation of existing roads and the construction of bridges.
- Consolidation of the main roads network, improvement in their tracing, deletion of black or blue spots and their linking up to the highways through exchanger networks.
- Linking up of roads between regions in the interior and others on the coastline.
- Development of the regional roads network through a continued construction of new stretches of roads in order to reduce the distances to be covered.
- Establishment of a road infrastructure adapted to urban areas, while taking into account the necessity to improve functional as well as aesthetic aspects of the approaches to towns.
- Continue the maintenance of rural tracks to facilitate activities in the countryside and linking up production areas to consumer ones.
- Improvement of traffic security conditions and creation of road networks linking up industrial areas with tourist resorts and cultural sites through the construction of motorways.
- Establishment of a regular maintenance of roads involving private companies in this activity.

B - Quantitative achievements

The total amount of investments that were made during the period of the Xth Plan into roads infrastructures projects was established at 2,736.2 MD, among which 1,422.4 MD concerning roads and bridges that were made by the Ministry of Equipment, Housing and Regional Development, 380 MD for the construction of highways and 935.4 MD for the maintenance of by-roads and local roads.

These investments have chiefly led to:

- The construction of the highway following the completion of the construction of the stretch between Tunis-Mejez El Bab - Oued Zarga (67 km);
- The upgrading of the network through the completion of rehabilitation works of 506 km of roads and the programming for the rehabilitation of another 1,256 km; actions whose progress rate reaches around 40%;
- The asphalting of 1,343 km of roads, as against 1,229 km that were programmed in the Plan, thus amounting to114.2 km more than estimated;
- The completion of 22 bridges in 19 governorates and launching in 2006, the construction of 22 other bridges distributed among 16 Governorates;
- The development of the network through the launch of the modernization of the regional network for 9 governorates concerning a total of 161.9 km. The next construction stage, consisting of 145 km, is expected to start during the course of 2007 and will concern five governorates;

It has also concerned the upgrading of the roads of the Greater Tunis area through:

- launching the construction work of the bridge Rades - La Goulette, which is currently in its last stage, and five road-exchangers: the first one at the level of the Ettaoufic Clinic spanning the 7th November Avenue, a second one at the entrance of the city of Manouba, a third exchanger at Chouchet Rades and a fourth near the Rue Cyrus Le Grand - Rue de Ghana, and a fifth one at the intersection with the Raoued highway;

- Launching the construction work of important stretches of roads on the GP5 highway (6.6 km), on the GP3A (5.7 km), and redevelopment of a 5.4 km portion of the regional road 33A2, in addition to the programming of the construction work of the exchanger Avenue de la République - Rue d'Italie, which is now progressing, to the modernization of the GP9 on a length of 13 km, and the upgrading of the X4 on a 4.5 km length;

- Upgrading the security of the road network through the construction of new deviations at the level of the city of Fouchana-Mohamedia and Dar Chaabane Fehri, the doubling of the roads of the National highway MC28 between Hammamet and Nabeul, of the GP1 between Msaken and Sousse, and of the GP11 between Bizerte and Menzel Bourguiba, in addition to the construction of 4 bridges and of a bypass between the main Highway and the city of Menzel Bourguiba (25 km).

Industry and Energy

Since the November 7th 1987 Change , and despite major changes on international markets, Tunisia's industry has achieved positive results based on its strong exports and partnerships.

The Manufacturing Industry:

Since the Change, efforts have been made to develop the manufacturing industry and tangible gains have been made as regards growth, indeed, from 1988 to 2007, an average growth rate of 4.8% per year was achieved, despite the strong competition in the sector.
The manufacturing sector was duly monitored from the early 90s during which an integrated strategy was introduced to boost the sector and consolidate its achievements. This strategy relied on deepening and broadening the reforms, stimulating free enterprise, promoting exports, reinforcing partnership, intensifying project- creation, increasing competitiveness, consolidating the attributes of the knowledge economy, pursuing the diversification of the industrial fabric, promoting business, and enhancing the role of industrial enterprise.

The policy followed since the Change to encourage investments, was based on several mechanisms set up to encourage industry in regional development areas and deepens the reforms through the structural adjustment program, thus leading to major quantitative and qualitative achievements.

  • Industrial Upgrading Program

The period 1996-2007 was marked by the adherence of 3928 companies in the upgrading program. The files of 2658 companies were approved, leading to a global investment of 4318 MD.

It is worth noting that the industrial upgrading program achieved the set objectives mainly through the boosting of investment, increase in the turnover of the concerned companies, employment of a qualified workforce and improvement of coaching.

It is in this context that the President of the Republic ordered to enact the second stage of the upgrading program targeting 1,200 industrial companies and 300 service companies during the 11th Plan, giving further attention to immaterial investments.

It is worth reminding within the same context, that the implementation of the customs barriers dismantling ended by the end of 2007 and that as of 2008, customs duties will no longer exist. Tunisia became the first Mediterranean country to establish a free trade zone with the European Union.

Considering the success achieved by the upgrading program on the industrial level, a second program has been set dubbed 'industrial modernization program' in cooperation with the European Commission. This program aims at promoting quality within the companies and reinforcing the support provided to the Tunisian industry through coaching and expertise brought in by this program.

We shall also note that as far as quality promotion is concerned, the efforts undertaken within the national quality program enabled 800 industrial companies to be certified according to international standards in 2007 as compared to 600 companies in 2006.

  • Making the Industrial Sector more competitive


In the final period, the industrial sector was made more competitive, particularly as regards export-oriented activities, particularly focusing on mechanical and electronic industries, as well as the textile and clothing sector, whose exports have been maintained at a steady rate over the past few years. This, in itself was a major achievement, given the increase in Chinese clothing exports to the European Union.

It is worth noting that the agro food industry, whose commercial balance showed a benefit for the third consecutive year in 2007, witnessed the establishment of a new strategy aiming at further organizing the sector and reinforcing its competitiveness given the current world context marked by an important increase in the price of agricultural basic products.

The past few years have also witnessed efforts to implement the program of the financial restructuring of enterprises; the program to list 50 companies on the stock market in 2009 in addition to the progress in the implementation of coaching programs, export and supply export programs, as well as the increasing use of communication technologies in Tunisia's industry.

  • Consolidating the Industrial


Environment & Investment


Moreover, to further boost entrepreneurial spirit and make investment more dynamic, Wednesdays' partnership days have been organized in all governorates.

Within the same framework and over these years, the industrial environment has been enhanced by consolidating the technological base. Various parts of sector-based technopoles have been created as well as the implementation of a large support program for fitting spaces to host businesses.

The same period has also witnessed an intensification of efforts to attract foreign investments and drive partnership with the major high investment potential international companies. It also revealed an important capacity deployed to enter foreign markets.
On another side, the investment climate has been improved by creating 14 one-stop-shop windows that serve as single agent for the provision of services to promoters within the prescribed deadline, in addition to better take in hand promoters and investors, 23 business incubators have been created in 2007 along with the setting up of business centres in all governorates.

Regarding sector-based prospecting studies, 30 studies have been carried out for promising activities along with a global study on 'industrial strategies for 2016'.

Industrial sector contribution to driving the work of development and supporting economic growth was generally enhanced by the creation of about 110,000 jobs over the 2002-2007 period. Nowadays, the industrial sector provides over 600,000 jobs.

Besides, the Era of the Change witnessed a consolidation of Tunisia's industrial fabric, seen in the noteworthy growth in the number of functioning enterprises (more than 10 employees) from 1,236 in 1987 providing 150,000 jobs to 5,702 in 2008 providing 478,000 jobs.

These achievements and gains have enabled Tunisia to hold an honourable rank in the recent ranking issued by the Davos World Economic Forum. Tunisia's ranking was improved according to the assessment made by specialist international bodies regarding economic liberalization, transparency and trade risks.

Energy

Since the Change of 7th November, 1987, the energy sector has been continually upgraded thanks to the impetus given by President Zine El Abidine Ben Ali to this vital sector.

Despite a decline in the production of crude oil in this period, overall production of hydrocarbons stabilized at around 6.5 million Toe (Ton Oil Equivalent) per year, resulting from the remarkable development of oil production reaching 4.7 million Toe in 2007 in addition to natural gas production rising from 0.9 million Toe in 1987 to about 2.9 million Toe in 2007.

The volume of investment in the field of energy grew outstandingly from 180 million dinars in 1987 to over 2,000 million dinars in 2007. These investments have focused basically on the development, storage and distribution hydrocarbons' production, as well as strengthening the national gas distribution network and the development of electric production.

  • Strategy to develop the Energy Sector


Along with all these achievements there was a revival of the national economy, with an improvement of the rate of energy consumption by about 4% per year. On this basis and within the context of growing consumption and stability of resources, from 2001 on the country's prime energy balance recorded a big deficit, which reached nearly a 0.1 million Toe in 2007, as against a 2.2 million Toe surplus in 1987. This meant that there was a need for future strategy for boosting the sector and developing its various branches. Such a strategy has been designed these years for developing the energy sector.

This strategy is based on:

- Intensifying and consolidating investment in the prospecting and search for hydrocarbons.
- Developing the production of hydrocarbons.
- Supplying the country with energy under the best possible conditions and consolidating its energy infrastructure achievements.
- Diversifying the sources of natural gas supply and developing uses of this energy, while protecting the environment.
- Promoting energy savings and the development of renewable energies.

This policy led to encouraging results at many levels. The number of permits granted to increase the production of hydrocarbons rose from 23 in 1987 to 42 in 2006; this helped enhance the discoveries made after 1988.

Regarding the production, transport and distribution of electricity and gas, in order to satisfy the growing demand for electric energy, the Era of the Change witnessed the state's strategic choices being implemented. This meant counting on natural gas as a vital source of energy for electricity production, opting for high-yield technologies in the production system, using wind-energy to produce electricity and having recourse to private funding to produce electric energy.

Accordingly, the electricity sector has managed to produce almost 1,938 additional megawatts, 498 of this through private initiative. By late 2007, the national electricity production reached about 13,144 GW/hour as against 4,016 GW/hour in 1987 i.e. more than three times as much. As from 1987, distribution of electricity increased, from 1.1 million customers in 1987 to 2.9 million in 2007.

In the field of electrification, the state marked a record on the level of rural electrification. Tunisia achieved a record in the field of rural electrification, compared with other similar countries, with a rate of 99% in 2007.

The state has worked to develop the use of natural gas by introducing an ambitious programme as part of the President's project for tomorrow's Tunisia that aims at doubling the number of natural gas users from about 250,000 in 2005 to 500,000 by late 2009. So far, many incentives have been offered to encourage more households to connect to the natural gas supply network.

  • Mastering energy and promoting renewable energies


The era of the Change has devoted attention to mastering energy and promoting renewable energy. From 1987, the national agency for energy conservation (ANME) has undertaken a national energy control program, mainly based on providing a legal framework, financial and tax incentives to encourage energy-savings, carry out compulsory regular energy diagnosis in energy-consuming enterprises, establish contract-program with economic enterprises, and carry out actions to inform, train and encourage people to use energy-saving equipment.

In general, all these programs and plans implemented and supported by successive presidential measures have led to energy savings of 400,000 Toe in 2007. Furthermore, all programs and laws have had positive effects when we consider the results recorded, particularly through the continuous reduction in the overall energy density index over the past two decades.

Mining

From independence until today, the mining sector has been playing a major role. Following developments that marked the late 1980 on the international level and had profoundly affected the sector, the state began to take major steps, to upgrade the mining facilities and modernize work methods. The aim was to be able to recoup its former dynamism and balance its books, after years of recession.

The Gafsa Phosphates Company continued to exploit surface mines and to accelerate the closing of underground mines, which were expensive to operate. The Company also undertook a program of improvement and modernization to improve its economic profitability and face up to world competition. This program concerned the financial restructuring of the activity, the recuperation of liquid assets, moving on to the stage of technological modernization and sophisticated exploitation, production and management methods, to give Tunisian phosphates a competitive edge.

The GCT (Tunisian Chemical Group) has managed to balance its books and record positive results at every level. This has helped revive the sector and crowned with success the efforts, decisions and reforms made to upgrade and promote it, enabling it to face sharp competition. The GCT is now the world's third exporter of phosphoric acid and fertilizers.

During the same period, the GCT started a solid strategy to set up cooperation and partnership opportunities with the main consumers of its production, to keep and strengthen its share of the world market in such a manner as to guarantee the profitability of its products. The GCT moved into a commanding place on the world market by undertaking the following actions:

- Setting up the SACE Arab-Chinese Fertilizer Company, jointly with the Chinese CNCC Company and the Kuwaiti PIC Company, in the town of Qinhuangdao in Hebei province.
The GCT holds 60% of the capital in this company following the purchase of al Kuwaiti shares.
- GCT's participation to the height of 5% in 2003 in the capital of the Indian GFCL Company in return for the signing of a long-term contract, by the terms of which an annual quantity of phosphoric acid, assessed at 200,000 tons, would be provided for the Company.

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