Tunisia Gets Loans for Energy System
The European Bank for Reconstruction and Development (EBRD) is providing a €300 ($360)mn financing package to Tunisian electricity and gas distributor Steg, it said February 3. The support is needed as the country manages the Covid-19 pandemic while also modernises its system to embrace more renewable energy.
The package consists of two facilities. The first is an immediate €100mn emergency facility for infrastructure support and the second will help refinance Steg’s short and medium-term liabilities. On top of that, the EU is providing an investment grant of up to €20mn.
The financing package will be accompanied by a detailed roadmap for reform and energy sustainability that aims to improve the company’s corporate and climate governance as well as financial management and some social objectives.
Established in 1962, Steg produces and distributes electricity and natural gas. Its involvement in the gas value chain is limited to gas distribution and gas-fired generation. Steg is also the sole off-taker of private renewable energy in the country.
Since the start of its operations in Tunisia in 2012, the EBRD has invested close to €1.2bn across 52 projects in the country, in both the private and public sectors.