VZCZCXRO8866
PP RUEHTRO
DE RUEHTU #1228/01 3521702
ZNR UUUUU ZZH
P 171702Z DEC 08
FM AMEMBASSY TUNIS
TO RUEHC/SECSTATE WASHDC PRIORITY 5826
INFO RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUCNMGH/MAGHREB COLLECTIVE

UNCLAS SECTION 01 OF 02 TUNIS 001228 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/MAG (NADI AND HAYES) AND EEB/CIP/BA (GIBBS) 
STATE PASS USTR (BURKHEAD) AND USAID (MCCLOUD) 
USDOC FOR ITA/MAC/ONE (NATHAN MASON), ADVOCACY CTR (TABINE), AND 
CLDP (TEJTEL AND MCMANUS) 
RABAT FOR FAS (AHMED) 
CASABLANCA FOR FCS (ORTIZ) 
CAIRO FOR FINANCIAL ATTACHE (SEVERENS) 
LONDON AND PARIS FOR NEA WATCHER 
 
E.O. 12958: N/A 
TAGS: ECON EFIN EINV ENRG ETRD TS
SUBJECT: TUNISIA - ECONOMIC HIGHLIGHTS 
 
¶1. (U) This cable contains highlights of recent economic 
developments in Tunisia on the following topics: 
 
¶A. Tunisia Tourism Revenue Up 
¶B. Tunisia Gets US $30.6 million Loan For Water Project 
¶C. Sotrapil Cancels Tunisian Oil Pipeline Project 
¶D. Tunisiana Banned From Third Telecoms License 
 
-------------------------- 
Tunisia Tourism Revenue Up 
-------------------------- 
 
¶2. (SBU)  Minister of Tourism Khelil Lajimi affirmed Tunisia's 
tourism revenue reached 2.90 billion dinars (US $2.4 billion) in the 
first ten months of 2008; up 10 percent over the same period the 
year before.  The number of tourists visiting the country during the 
January to October timeframe increased 3.4 percent to 6.28 million. 
The government expects final tallies of tourism revenue to increase 
8 percent over last year's record figure of 3.0 billion dinars (US 
$2.37 billion).  The Minister made the announcement during the 
parliamentary debates over the national 2009 budget.  Despite the 
good news for 2008, the Minister mentioned that it is unclear as of 
yet what impact the financial crisis will have on the tourist sector 
in 2009.  Tourism supports roughly 380,000 direct and indirect jobs 
in Tunisia.  (NOTE: Despite Minister Lajimi's affirmations, local 
tour operators confirmed in private discussions with EconOff that 
right now there are fewer advanced bookings for the summer months 
than in recent years.) 
 
--------------------------------------------- ------- 
Tunisia Gets US $30.6 million Loan For Water Project 
--------------------------------------------- ------- 
 
¶3. (U) On December 11, the African Development Bank (AfDB) Group 
Board of Directors approved a 22.91 million Euro (US $30.6 million) 
loan to finance phase two of Tunisia's  Water Sector Investment 
Project (PISEAU II), according to an AfDB statement.  PISEAU II is a 
component of the Tunisian Water Mobilization and Management Strategy 
2002-2011, and a follow up to PISEAU I which lasted from 2002 to 
¶2007.  The main objective of PISEAU II is to promote efficient and 
integrated management of conventional water resources (including 
dams, ponds, boreholes and surface wells) as well as 
non-conventional water sources (wastewater and brackish water) to 
meet the challenge of water scarcity in the country.  The project is 
intended to benefit Tunisia's rural population.  The goal of the 
project is to strengthen irrigated agriculture and increase 
available drinking water.  The project is also geared to address 
water issues related to climate change.  Implementation of the 
project will begin in 2009 and cover a five-year period.  The total 
project cost is Euro 122.01 million (US $163.33 million).  The 
project will be co-financed by the French Development Agency (AFD), 
the World Bank and the Tunisian Government.  During the last 10 
years the World Bank, among others, encouraged and financed GOT 
efforts to improve water resource management 
 
--------------------------------------------- - 
Sotrapil Cancels Tunisian Oil Pipeline Project 
--------------------------------------------- - 
 
¶4. (U) On December 1 the Tunisian state owned oil and gas pipeline 
operator Sotrapil publicly cancelled a fuel pipeline construction 
project due to concerns about the project's profitability.  The 
project was planned to link the Sahel and Skhira zones by building 
on the existing Sidi Khilani-Skhira pipeline.  The 185 km pipeline 
was designed to move refined fuel products between storage 
facilities in central and southern Tunisia.  The project was 
initially scheduled to begin by the end of 2007.  Sotrapil said it 
also aimed to cancel capital increases approved by shareholders in 
2007 and 2008 and replace them with a smaller share issue that would 
boost its capital to TND 16.359 million (US $13.578 million) from 
TND 15.730 million (US $13.056 million).  In 2001, the GOT sold 30 
percent of SOTRAPIL capital on the Tunisian Stock Exchange. 
 
-------------------------------------------- 
Tunisiana Banned From Third Telecoms License 
-------------------------------------------- 
 
¶5. (U) Tunisiana, Tunisia's private mobile phone operator, is barred 
from bidding on the recently announced fixed and mobile line tender. 
 Tunisiana, a joint venture between Egypt's Orascom Telecom and 
Kuwait's Wataniya, publicly indicated its interest in acquiring the 
 
TUNIS 00001228  002 OF 002 
 
 
license.  Instance Nationale de Telecommunications, the 
telecommunication regulator, announced the decision to bar Tunisiana 
from bidding on December 10 and offered no further explanation for 
the decision.  The new license includes the right to operate a 3G 
mobile phone network, enabling the winning firm to provide 
additional services such as mobile broadband.  Neither Tunisiana or 
Tunisie Telecom are currently allowed to provide 3G services. 
 
GODEC