Country context (P3 lens)

Tunisia is an upper-middle-income country in North Africa with a growing P3 market. P3s are used to mobilize private capital, accelerate infrastructure delivery, and transfer operational risk, particularly in transport, energy, water, and social infrastructure. The government has established legal frameworks and a PPP unit to facilitate private sector participation, often leveraging regional and international investors.

Verified sources: World Bank PPP Knowledge Lab, Tunisia Ministry of Finance – PPP Unit, African Development Bank (AfDB), IMF.

Economic and infrastructure conditions

• Economy: Diversified, with agriculture, manufacturing, tourism, and services sectors; infrastructure investment supports trade, urban development, and energy access.

• Infrastructure priorities:

  • Roads, highways, bridges, and urban transit networks

  • Ports, airports, and logistics hubs

  • Electricity generation, transmission, and distribution (including renewables)

  • Water supply, sanitation, and wastewater management

  • Hospitals, schools, and other social infrastructure

• Private sector: Moderate domestic investor base; larger projects attract regional and international investors, often supported by development banks or donor agencies.

Public Private Partnerships framework

Legal and institutional setup

• P3s are governed by national PPP legislation and regulations, with oversight by the PPP Unit under the Ministry of Finance.

• Project approval requires feasibility studies, value-for-money assessments, lifecycle cost evaluation, and risk allocation analysis.

• Typical P3 structures:

  • Concessions for roads, bridges, ports, and airports

  • Build-Operate-Transfer (BOT) or Design-Build-Finance-Operate (DBFO) models for energy and utilities

  • Availability-payment contracts for hospitals, schools, and municipal infrastructure

Market characteristics

• Tunisia’s P3 market is growing, with experience in transport, energy, and social infrastructure projects.

• Financing structures include availability payments, toll-based revenues, revenue-sharing, and blended finance supported by donors or development banks.

• Investors include domestic banks, regional and international partners, private equity, and multilateral institutions.

Sector experience and opportunities

Transport

• Roads, highways, bridges, ports, airports, and urban transit are key P3 opportunities.

• Railway and logistics hubs increasingly structured under P3 arrangements.

Energy and utilities

• Renewable energy (solar, wind, biomass), electricity transmission, and distribution delivered under BOT or concession models.

• Water supply and wastewater treatment increasingly involve private operators under structured agreements.

Social infrastructure

• Hospitals, schools, and municipal facilities delivered through availability-payment P3s, often supported by donor or multilateral funding.

Key P3 considerations

• Project preparation: Strong emphasis on feasibility, lifecycle cost, and value-for-money analysis.

• Risk allocation: Construction, operational, and maintenance risks transferred to private partners; regulatory risks remain public.

• Institutional capacity: PPP Unit provides guidance, approvals, and monitoring; technical advisory support is commonly used for complex projects.

• Market depth: Moderate domestic investor base; larger projects require regional or international participation.

Outlook

Tunisia is a growing P3 market with opportunities across transport, energy, water, and social infrastructure:

• Focus sectors: roads, highways, bridges, ports, airports, energy, water, and social infrastructure

• Projects are generally medium- to large-scale, government- or donor-supported, and structured for predictable returns

• Institutional frameworks provide regulatory oversight, risk mitigation, and project guidance

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