Tunisia's plans to improve the environment provide excellent business projects - includes related article

In a speech earlier this year celebrating the world day of the environment, Tunisian President Ben Ali publicly reviewed the environmental record of his administration and spoke of Tunisia's plans and goals for the future. Tunisia's environmental goals include:

1. Expanded programs of water, sewage, and solid waste management;

2. A new, unified investment code that will encourage investors to incorporate environmental factors in their investments;

3. Greater environmental awareness by the public, especially the young, through the efforts of both private organizations and classroom instruction; and

4. An international conference to evaluate the environmental threat to the Mediterranean, and the adoption of an international agreement to combat that threat.

Illustrating Tunisia's plans, Ali noted that environmental expenditures to date, in this the second year of the current five-year plan (1992 through 1996), total nearly 600 million dinar (MD)--one Tunisian dinar equals approximately $1.03--as compared to 242 MD for the entire previous five-year plan. Total expenditures on the environment in the current five-year plan are expected to reach 1,400 MD ($1.442 billion).

Citing the importance given to the urban environment, Ali noted that 20,000 homes have benefited from the first stage of a program to expand and improve urban sanitation systems, a program which will ultimately benefit 214 separate neighborhoods at a total cost of $36 million. Expanding sewer systems in the small- and medium-sized cities is also a part of this program and, to date, 27 water treatment plants have been built, and another 18 are planned or under way.

In the coastal zones, the government is investing in projects to ensure that the ultimate outlet for the treated effluent is far from the pristine beaches and tourism areas. Old unregulated solid waste dumps have been closed, and new controlled ones are being opened.

Regarding the issue of industrial pollution, Ali noted that the government has closed some polluting industries, modernized or relocated others, and encouraged the proprietors of still others to outfit their plants with waste water treatment facilities. The government has created a fund to assist in this endeavor, and 42 such facilities will be effected in 1994.

A new, unified investment code, when fully implemented, will include financial incentives for new investors in matters of environmental protection, cleanup, and the treatment and recycling of waste products.

President Ali made a special effort to point out the biodiversity and species protection provisions of the national plan, which encourage parks and preserve natural habitats on land and in the sea. To strengthen and consolidate support for such projects, he called upon national businesses to support them, advocated the creation of ecological clubs throughout the country, and called for integrating environmental awareness into all levels of formal education.

Acknowledging the importance of the Rio Conference on the environment last year, and declaring Tunisia's support for "Agenda 21" and other such agreements, the President called for the countries of the Mediterranean Basin to work together to combat environmental threats to the Mediterranean, particularly those stemming from waste water, solid waste, and petroleum products. He also called for an international conference to evaluate the threats, and the adoption of appropriate measures to protect the Mediterranean through an "Agenda 21" type agreement designed to reconcile the sometimes conflicting goals of economic development and environmental protection.

Science and Technical Cooperation

Currently, Tunisia is the only North African country with a Ministry of the Environment, and in 1993 that Ministry was granted a 324 percent increase in its operational budget and a 260 percent increase in its capital budget. Total governmental expenditures for 1994-96 should amount to about $825 million.

The government of Tunisia is interested in clean technology, environmental cleanup, water resource management, solid waste management, hazardous material handling, response to environmental accidents, and prevention and control of environmental pollution associated with onshore and offshore oil exploration and development.

Tunisia's agriculture sector offers some specific chances for cooperative exchange. The Tunisian economy is heavily dependent on the cultivation of cereals, olives, grapes, and dates. Opportunities exist for U.S. involvement in the development and management of these field crops, including techniques for pest management. Specifically, there are openings for developing resistant shocks, fungicide treatment, or other methods to control fungal diseases like "Bayoud" that are affecting the area.

Soil erosion and desertification remain problems across the Maghreb region. The government of Tunisia has already undertaken some antidesertification efforts through the development of oases and vegetable barriers in the southern part of the country, and further plans are in the works. Tunisia has demonstrated an interest in biodiversity and wildlife preservation and has specific projects planned, including a project to establish a two-island ecological area off the north coast and a project to protect two endangered species in southern Tunisia.

Another area that offers possibilities of cooperative technical exchanges involves the Tunisian Institute Regional Des Sciences Informatique Et Des Telecommunications (IRSIT), which plans to:

* Develop software for Arab-to-English translation;

* Develop a computer-based research network to tie together the facilities of the colleges, universities, and research centers in Tunisia;

* Use the Geographical Information System (GIS) to model environmental changes in the Gulf of Gabes; and

* Develop a GIS data base for telecommunications system in Tunisia.

American firms can find additional occasions to bid on several World Bank funded projects, including:

* The development of a national flood control plan and the construction of flood control infrastructure (valued at $100 million);

* The modernization of the transport sector, including the development of road safety measures and the rehabilitation of rural roads, railways, ports and airports ($170 million); and

* The Water Supply VIII Project, designed to rehabilitate the greater Tunis water supply system ($50 million).

Generally speaking, consulting firms should register with the World Bank to ensure being short-listed for specific projects. Construction firms and general suppliers do not need to preregister unless the project is large and requires specific technical expertise. General information about business opportunities under World Bank loans and credits may be obtained from the World Bank Business Affairs Advisor at fax (202) 676-0578, or by calling Janice Mazur, U.S. Department of Commerce World Bank Liaison Officer, at tel. (202) 458-0118, fax (202) 477-2967. Firms should contact the implementing agencies in Tunisia for details concerning specific projects.

While Tunisia's environmental plans are creating business opportunities for American firms, as well as chances for closer United States-Tunisian science and technology cooperation, funding sources for some projects have not yet been identified.

Given President Ben Ali's commitment to the environment and the opportunities that are open now and over the long-term, American firms with environmental and related technical abilities may want to consider taking a closer look at doing business in Tunisia.

Further details will be provided as soon as they are available. Call the Office of the Near East FLASH FACTS automated information system at tel. (202) 482-1064, or search the National Trade Data Bank (NTDB) for information about Tunisia's business environment and any updates of Tunisia's environmental plans. For information on the NTDB call 1-800-USA-TRADE.

For more information on how to do business in Tunisia, refer to the Guide to Doing Business in Tunisia, which is available from the National Technical Information Service by calling tel. (703) 487-4650.

Other sources of information about developing business in Tunisia are: the Tunisian Embassy in Washington, tel. (202) 862-1850; the Washington office of the Tunisian Agency for Industrial Promotion (API), tel. (202) 223-8580, fax (202) 223-8005; the U.S.-Arab Chamber of Commerce, tel. (202) 331-8010; the Tunisian-American Chamber of Commerce in Tunisia, tel. 216-1-799-887, fax 216-1-799-851; and the American Embassy-Tunis, tel. 216-1-782-566, fax 216-1-789-719.

Tunisia International Trade Fair Tunis, Tunisia Oct. 21-30, 1994

The American Embassy in Tunis, Tunisia is organizing an American Pavilion for the 1994 Tunis International Trade Fair. This will be the second year in a row that the Embassy has organized such a pavilion. In 1993, the American Pavilion was one of the largest at the fair, and more than 30 American firms participated.

Because of the success of last year's fair, our Embassy hopes to attract even more American firms to the 1994 event. The trade fair will be held at the exhibition grounds near the Commercial Port of Tunisia, the International Tunis-Carthage Airport, and the center of downtown Tunis (8 minutes away). The grounds feature 25,000 square meters of covered area in three halls, an International Trade and Business Center, and 15,000 square meters of outdoor exhibition space. The exhibition grounds offer all necessary services and facilities including conference and meeting rooms, four different restaurants, two operating banks, a day nursery, a VIP lounge, and security surveillance.

Although the fair is open to all types of commercial businesses, the American Embassy reports that the best prospect industry areas for American exports are in the following sectors:

* Environmental services (environmental cleanup services and equipment, water resource and solid waste management, hazardous material handling, response to environmental accidents, and prevention of pollution associated with oil exploration and development);

* Infrastructure development (extension of the national highway system and expansion of two ports, including engineering studies and related equipment sales);

* Telecommunications (addition of 350,000 lines by 1996 and another 700,000 lines by the year 2000);

* Packaging machinery and equipment (especially packaging products exporting); and

* Light manufacturing and assembly (particularly in the textiles and electronics industries).

Overall, the U.S. share of Tunisia's market and our bilateral trade relations have grown steadily in the last two years. In 1992, U.S. exports totaled over $232 million, and total bilateral trade was almost $285 million (a 45 percent increase over 1991 figures).

American firms are encouraged to learn more about the Tunis International Trade Fair by contacting the American Embassy in Tunis, tel. 261-1-782-566, fax 216-1-789-719, and the Tunisian Embassy in Washington at tel. (202) 862-1850, fax (202) 862-1858.

COPYRIGHT 1993 U.S. Government Printing Office
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