Release date: 16 September 2020
Promoter – Financial Intermediary
SOCIETE TUNISIENNE DE L'ELECTRICITE ET DU GAZLocation
Description
Investment programme aimed at strengthening the electricity transmission infrastructure and the rehabilitation of electricity distribution networks in Tunisia.
Additionality and Impact
EIB's support to STEG will strengthen and expand Tunisia's electricity transmission and distribution networks, helping to bridge a significant investment gap in infrastructure in the country. The project will connect new customers, reduce network losses, and improve reliability and continuity of service in a context of increasing demand, and the associated market failures in terms of reliability, security of supply. and climate externality. It will strengthen Tunisia's electricity transmission infrastructure in order to integrate new generation sources and reduce CO2 emissions and address the climate externality. The programme's economic and social benefits are expected to be excellent and is expected to have positive ESG impacts.
The project is well aligned with EIB's external lending mandate, which aims to finance social, environmental, and economic infrastructure. It will also contribute to the Government's energy development plan.
EIB's contribution to this project has enabled the promoter to raise additional funding from other IFIs and to accelerate the implementation of its Capex programme. EIB's support has also allowed the promoter to benefit from a technical assistance to establish the Environmental and Social frameworks needed for the project. Such a technical assistance is a first of its kind in Tunisia.
Objectives
The proposed project aims at strengthening Tunisia's electricity transmission system and improving power and gas distribution systems. It will ultimately contribute to meeting the growing electricity demand of the country. The EIB project is part of a larger investment programme, which also includes a transmission component comprising the construction of high-voltage transmission lines and several power sub-stations, financed by the World Bank.
Comments
This operation is covered by the ELM 2014-2020 Guarantee or its successor.
Sector(s)
- Energy - Electricity, gas, steam and air conditioning supply
Under ELM Guarantee
This operation is covered by the ELM Guarantee.
Under Global Europe NDICI guarantee
Under EFSD+ Guarantee
Proposed EIB finance (Approximate amount)
USD 70 million (EUR 60 million)
Total cost (Approximate amount)
USD 224 million (EUR 193 million)
Environmental aspects
The Bank will ensure the project complies with national legislation, relevant EU directives and principles and the ElB's Environmental and Social Standards.
Procurement
The Bank will require the Promoter to ensure that procurement of the project contracts financed by the Bank will be done in accordance with the Bank's Guide to Procurement.
Status
Signed - 28/12/2022
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).