EBRD is providing $361mn financing package to Tunisia’s national electricity and gas company

The European Bank for Reconstruction and Development (EBRD) is providing €300mn ($361mn) financing package to Societe Tunisienne de l’Electricite et du Gaz (STEG), the state-owned national electricity and gas utility, to support the stability of Tunisia’s energy sector during the coronavirus (COVID-19) pandemic in the medium term. The aim of the programme is to help the company draw-up a detailed roadmap for reform and energy sustainability.

The financing facility comprises a €100mn emergency stabilisation facility under EBRD’s Vital Infrastructure Support Programme and a €200mn facility helping refinance STEG’s short and medium-term liabilities. In addition, the European Union will provide an investment grant of up to €20mn to finance the implementation of an enterprise resource planning system to help STEG’s modernisation plans.

Established in 1962, STEG produces and distributes electricity and natural gas. Its involvement in the natural gas business is limited to gas distribution and gas-fired electricity generation. STEG is also the sole off-taker of private renewable energy in Tunisia.