BERD lends Tunisia €300m earmarked for energy stabilization during pandemic
The European Bank for Reconstruction and Development (EBRD) is providing a €300 million financing package to Société Tunisienne de l’Electricité et du Gaz (STEG) to support the stability of Tunisia’s energy sector during the coronavirus pandemic in the medium term.
This program will allow Tunisia’s state-owned national electricity and gas utility company to implement an ambitious corporate and climate reform roadmap that would anchor the shift towards a more sustainable and efficiently run company, EBRD said in a press release.
The package consists of two facilities. The first is an immediate €100 million emergency stabilization facility under the EBRD’s Vital Infrastructure Support Program. The second facility of up to €200 million will help refinance STEG’s short and medium-term liabilities.
In addition, the European Union is providing an investment grant of up to €20 million to finance the implementation of an enterprise resource planning system, a necessary step towards the modernization of STEG.
The Global Environment Facility (GEF) is providing a grant of up to €400,000 under the EBRD’s Environmental Technology Transfer program, which focuses on promoting investments in wastewater treatment and recycling.
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, enhancing financial management and promoting inclusion to support equal opportunities and career development for women and young professionals.