TUNIS, Sept. 17 (Xinhua) -- Tunisia and Italy signed a memorandum of understanding (MoU) Monday for an integrated rural development project in southwestern Tunisia.

According to a statement from the Tunisian Ministry of Foreign Affairs, this project will be funded by Italy with an overall amount of 5 million euros (584 million U.S. dollars).

This project is part of Tunisia's national strategy to combat desertification as well as improve living conditions and incomes of the people in regions of Hazoua and Tamerza.

According to a press release from Italian embassy in Tunis, the project will be carried out for three years. It will benefit 950 farmers for a total of more than 1,100 hectares in 18 irrigated perimeters.

Italy is the second largest economic partner and the second largest investor in Tunisia with 861 companies in the north African country. It is the leading commercial supplier and one of the main donors of Tunisia.