Saudi Fund invests in Tunisian phosphate transport

The Saudi Fund for Development has signed a funding agreement with the Tunisian government, committing 55 million US dollars (approximately 173 million dinars) to a project aimed at renovating Tunisia’s phosphate transport railway network.

The project, managed by the Tunisian National Railway Company (SNCFT), will focus on the renovation of 190 km of railway lines. The goal is to enhance the transport capacity of produced and processed phosphate, thereby improving the financial situation of companies operating in the sector and contributing to the recovery of the national economy.

In addition to boosting the transport of phosphate, the project aims to reduce the maintenance costs of the railway network, which has been in operation for over 40 years. It also seeks to encourage the operation of new wagons with a capacity of 3,200 tonnes for phosphate transport, contributing to regional development and job creation.

The project has several other objectives, including environmental preservation, energy saving, reducing traffic on the road network, and improving the trade balance by ensuring the transport of larger quantities of phosphate and its derivatives.

The first phase of the project will focus on the phosphate transport rail network in southern Tunisia, particularly in the governorates of Sfax, Gafsa, and Gabès. This phase is expected to be completed in just over two years.

Feryel Ouerghi, the Tunisian Minister of Economy and Planning, and Sultan Bin Abdelrahmane El-Mourchid, the Executive President of the Saudi Fund for Development signed the funding agreement.

Abdulmohsen Almutlaq(pictured), the Legal Director for the Saudi Fund for Development, provided legal advice on the deal.