ELMED project: ARP approves three loan agreements from EBRD, IBRD and KFW
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Tunis: The Assembly of People’s Representatives (ARP) adopted at a plenary Wednesday three bills approving three agreements on loans granted by the EBRD, the IBRD and the KFW to the Tunisian Electricity and Gas Company (STEG) to finance the Tunisia-Italy electricity interconnection project (ELMED) and the development of the renewable energy sector.
The first bill, approving a guarantee agreement signed on December 20, 2023 between the Republic of Tunisia and the European Bank for Reconstruction and Development (EBRD) for the granting of a pound 45 million loan to STEG to help finance the Tunisia-Italy electricity interconnection project and the development of the renewable energy system, was adopted by 105 votes in favour, 11 against and 8 abstentions.
The loan will finance a high-voltage direct current (HVDC) submarine power cable with a capacity of 600 MW and a length of 200 km between Tunisia and Italy.
With a total cost of almost EUR 1,014 million, financed by grants and loans from the Tunisian side (S
TEG) and the Italian side (Terna, the Italian electricity transmission system operator), the ELMED project forms part of the socio-economic development plan for 2023/2025 and is in line with the national energy strategy for 2050.
It will help increase the national capacity to exchange electricity between Tunisia and Europe, benefiting Tunisian households by reducing the cost of electricity bills. It will also create new opportunities for Tunisian companies in the renewable energy sector.
In the short term, the ELMED project will enhance Tunisia’s energy security, reduce its energy deficit and help it to achieve its objectives in the fight against greenhouse gas emissions.
In the long term, the project will enable Tunisia to become a supplier of electricity to Italy and strengthen its position in the Euro-Mediterranean electricity market.
The second bill approving a guarantee agreement signed on December 13, 2023 between the Republic of Tunisia and the International Bank for Reconstruction and Development
(IBRD).
It provides for granting of a loan of 20 million dollars by the Green Climate Fund to STEG to help finance the Tunisia-Italy electricity interconnection project and the development of the renewable energy system, was passed with 107 votes in favour, 13 against and 7 abstentions.
The third bill approving a guarantee agreement signed on December 22, 2023 between the Republic of Tunisia and the German Bank for Development and Reconstruction (KFW). It relates to a pound 35 million loan provided to STEG to help finance the Tunisia-Italy electricity interconnection project and the development of the renewable energy system.
The bill was passed with 105 votes in favour, 14 against and 7 abstentions.
Source: Agence Tunis Afrique Presse