Financing Program for Local Communities (FICOL), Lot 1

Project details
Country: 
Tunisia
Beneficiary: 
Caisse de Prêts et de Soutien aux Collectivités Locales (CPSCL)
Donor organisation: 
KfW Development Bank
Associated enterprises: 
GOPA Consultants
SCET Tunisie
SWECO
Department: 
Architecture & Urban Development
Project volume: 
4,075,371 €
Currency: 
€
Value of services: 
2,603,955 €
Start of project: 
August, 2018
End of project: 
February, 2026
Project background: 

Dates (start/end)
Phase 1: 08/2028 - 12/2024
Phase 2: 12/2024 - 02/2026

Overall contract value (EUR)
Phase 1: 2,024,303 EUR
Phase 2: 2,051,068 EUR

Value of services (EUR)
Phase 1: 80%
Phase 2: 48%

Project description: 

Component 1 of the project has an open concept. The list of the sub-projects will be defined based on individual requests submitted by the local communities (LC) following a participatory approach and based on their annual investment plans (AIP). In order to be able to access the financing, the municipalities have to meet preconditions and financing terms which are detailed in the “Guide FINCom”. Up to a ceiling of 700,000 EUR, the sub-projects are financed across a disposition fund. The approved individual projects will be implemented by the LC acting as employer. CPSCL (Loan and Support Fund for the Local Communities) across its regional offices will support the LC in the implementation of the sub-projects.

The expected deliverable of component 1 is as follows :

The new municipalities have rehabilitated or newly constructed functional infrastructure at their disposal including equipment supplied and in operation.

For component 1 the envisaged activities encompass :

  • Construction and rehabilitation of municipal infrastructure;
  • Supply of equipment.

FICOL programme component 1 will finance the following investment measures :

  • Construction and rehabilitation of buildings (e.g. city council, municipal depot, rehabilitation of municipal buildings, markets, commercial premises etc.);
  • Construction and rehabilitation of municipal infrastructure such as roads and various networks (e.g. roads and pavements, public lighting, storm water drainage, city beautification etc.);
  • Procurement of materials and equipment (e.g. road and cleaning equipment, computer equipment);
  • Economic projects (e. g. markets, parking);
  • Services of an internationally experienced consultant to assist the project implementation, especially the realisation of the investments (IMC).

CPSCL supported by IMC will help the municipalities in establishing their AIP and the request. The LC may refer to design and monitoring offices (prime contractor) to assist them in the preparation and implementation of the projects. In this case these firms support the LC in the elaboration of feasibility studies, designs, tenders, supervision and monitoring of the construction sites and the works and supply contracts. If need is, they can also act as delegated project owners (steering offices). The LC can also make use of steering offices acting as delegated project owners for works above a contract value of EUR 350,000. Works and supply firms are contracted by the LC for the infrastructure construction, equipment supply and installation under individual contracts. The AMC will support the CPSCL in the management of the disposition fund including the regular submission of financial information to KfW.

Projects with high environmental risk and projects of a religious nature are excluded from being financed across this project. These latter count among category A investments as defined in the CPSCL’s “Environmental and Social Evaluation Guide of the Local Communities” (e.g. new landfills and solid waste transfer stations, slaughterhouses, investments that would enforce the relocation of private households or industrial activities). In light of the urgent needs of the municipalities, it was agreed to start with basic investments for each project municipality, especially administrative buildings, municipal parks as well as rolling and IT equipment.

Service description: 
  • Preparation and hand over to KfW Development Bank as quickly as possible after the IMC project start of a detailed timetable of the costs and the updated financing ensuring the technical and financial project progress;
  • Development of project working  tools: information material for the LC, guides for the different investment types (administrative buildings,  procurement of equipment, basic infrastructure); model plans; model specifications; model financing agreements taking into consideration the preconditions and financing conditions criteria (annual capacity strengthening plan, AIP, approved budget etc.); improvement of evaluation and monitoring  tools; analyzing  the financing procedures for multiannual projects and if necessary propose adjustments of the Guide FINCom to ensure the financing over the whole realization period;
  • Developing model specifications for engineering consulting firms to be recruited by the LC (studies, project management support, works supervision) taking into account operation and maintenance aspects and environmental and social risks;
  • Supporting CPSCL in organising information workshops in the new LC;
  • Assisting CPSCL in applying the environmental and social management framework established for the Urban Development and Local Governance Programme and the conditions of the separate agreement signed between CPSCL and KfW Development Bank;
  • Establishing evaluation reports of the LC requests in cooperation with CPSCL;
  • Monitoring and enhancing the CPSCL support to the LC during the specifications elaboration and tendering process for feasibility studies, technical studies as well as works and supplies taking into account Tunisian standards and involving decentralised services of sector ministries and public enterprises;
  • Strengthening  the support to the LC in implementing infrastructure and procurement projects, especially regarding operation and maintenance risks and environmental and social risks;
  • Monitoring the achievements at LC level as well as the intermediate project objectives and results;
  • Monitoring and supporting CPSCL in a transparent project management and the financial management of the disposition fund and organising its external audit;
  • Preparing project progress reports and supporting the Programme Manager in its obligations to monitor and report on the progress of the programme; and
  • Preparing an inception report and submitting a final report.
Objectives: 

The overall objective of the programme “FICOL- Programme de financement des collectivités locales – Lot 1” is to contribute to the democratic reform and decentralisation process in Tunisia and to improve the social conditions and the economic situation of the Tunisian population.

The specific programme objective is defined as follows: The administrations of the new municipalities and their capacities for sustainable and demand-oriented infrastructure implementation and municipal services provision are strengthened and more efficient.

Currency: 
€