| Project Detail |
The Tunisian energy sector is in crucial need of investments due to demand outpacing supply.
Tunisia's socio-economic development, marked by the growth and modernisation of industries and services, and the growing population's enhanced living standards have spurred increasing demand for electricity and a substantial increase in peak demand.
Under the Network Equipment Program of the 12th Five-Year Socioeconomic Development Plan (2012-2016), STEG will enhance the quality of its service through an electricity network rehabilitation and modernisation programme. The Project forms an integral part of this programme.
The Project will enhance the performance and reliability of the electricity transmission and distribution network and, prepare the Tunisian grid for future additional renewable capacity.
The objective of the Project is to create a reliable and more efficient transmission and distribution network. Tunisia is facing growing demand and rising mid-day peak demand during summer and has planned to build several power plants in the next few years to address these challenges. The network needs to be strengthened and expanded to be able to welcome this new generation capacity in the best conditions.
Network losses have been gradually decreasing over the past few years and the investment program will contribute to further reductions. The improved efficiency will also result in reduction of CO2 emissions.
The client for the project is Societe Tunisienne De L'electricite Et Du Gaz (STEG). STEG is Tunisia's 100% state-owned vertically-integrated national electricity and gas utility company, and is under the supervisory of the Ministry of Energy and Mining. It was founded in 1962 (law- Decree n 62-8 dated on 03/04/1962), when the Tunisian Government decided to nationalize the generation, transmission, distribution, import and export of electricity and gas, entrusting these activities to STEG.
The total cost of the project is EUR 170 million.
The European Bank for Reconstruction and Development (EBRD) is considering providing a senior loan of up to EUR 85 million to STEG, to finance the project. |
