Tunisian Parliament Approves Loan for Electricity Interconnection Project with Italy
On Monday, October 14, 2024, the Finance Committee of the Tunisian People's Assembly approved a bill related to a loan granted to the Tunisian Electricity and Gas Company (STEG) to finance the electricity interconnection project between Tunisia and Italy.
Loan Agreement with the European Investment Bank
The bill concerns the approval of a guarantee agreement signed on April 4, 2024, between Tunisia and the European Investment Bank, in favor of STEG, for a tranche of €45 million.
Committee Recommendations
Committee members stressed the importance of involving local investors and prioritizing the employment of Tunisian labor for the project's implementation. They also recommended organizing a site visit to monitor the progress of the works, in line with the committee's oversight role.
Loan Conditions and Interest Rates
The discussion also focused on the loan conditions, particularly the impact of variable interest rates on repayment.
Total Cost of the Project
The total cost of the Tunisia-Italy electricity interconnection project is estimated at €1.014 billion, with the €45 million tranche being the final phase of the ongoing financing review.
