The Tunisian parliament has approved an agreement with the Islamic Development Bank to provide the country with a 121 million euro loan for its electricity sector.
Tunisian government officials, who refused to be identified, said that the project which includes establishing and improving the performance of 30 power-transmission stations across the country, will double Tunisia’s electricity production.
It will also meet the rising demands for power and increase high-voltage power lines by 210 kilometers, they said.
The loan will ultimately improve the performance of the Tunisian Company of Electricity and Gas (STEG) and consolidate its efforts to provide power to its agents, mainly in the summer season when consumption rises through the use of air conditioning and during winter due to the use of heating equipment.
The project involves the establishment and rehabilitation of 30 power transmission stations, and installing high-voltage lines and their needed equipment.
The loan’s approval comes as the Tunisian government seeks to increase renewable energy production such as solar and wind power, which according to the latest data provided by the energy ministry only amounts to three percent.
Tunis has also adopted a law on the production of electricity by the private sector to provide STEG with its needs. But the project is still in its early stages.
The Islamic Development Bank had pledged during meetings with The Tunisian government last April to fund 3.2 billion dollars worth of projects in the health, education and energy sectors.
The Tunisian authorities have close relations with the Bank, which has funded more than 35 projects, including infrastructure, energy and human resources, in the country.
