People's Representatives Assembly approves 110 million euro loan for Gafsa Phosphate Company modernization
The People's Representatives Assembly ARP on Tuesday, July 28, 2026, adopted a bill approving a guarantee agreement between the Tunisian Republic and the European Bank for Reconstruction and Development EBRD. This agreement, concluded on November 3, 2025, provides a 110 million euro loan to the Gafsa Phosphate Company CPG for a comprehensive modernization program. The loan will fund the acquisition of modern equipment for phosphate extraction and transport, and the establishment of a high-pressure filtration unit CAPSA for wastewater treatment and reuse. A seven million euro grant will also provide technical assistance for the project's implementation. The bill was adopted with 58 votes in favor, 9 abstentions, and 13 against. This program aims to revitalize the phosphate sector, enhance CPG's profitability and competitiveness, improve workplace safety, modernize management and governance systems, and align operations with international standards. Environmentally, the project anticipates a significant reduction in water consumption, with a goal of reusing up to 90% of treated water, thereby easing pressure on groundwater resources. These investments are expected to boost national phosphate production, improve CPG's performance, increase the country's foreign currency earnings, and create new jobs. The project will be completed over three years, with the EBRD loan to be repaid over ten years, including a three-year grace period, guaranteed by the Tunisian state.