AfDB signs 2 financial agreements with Tunisia to modernize electrical infrastructure

The Tunisian Minister of Finance and Acting Minister of Development, Investment and International Cooperation, Ridha Chalghoum and the Deputy Director General of the African Development Bank for North Africa, Yacine Diama Fal have recently signed two financing agreements in the energy and financial sectors, for a total amount of 238 million euros.

"Tunisia is committed to mobilizing external funding for its structuring projects. Through these agreements, we are modernizing the electrical infrastructure and improving the services provided to the populations. We also support the development of small and medium-sized enterprises through easier access to finance. We salute the excellence of our relations with the African Development Bank. 2019 saw the granting of significant funding for the benefit of strategic sectors, the Minister of Finance and Acting Minister of Development, Investment and International Cooperation, Ridha Chalghoum opined.

The signing ceremony took place at the headquarters of the Ministry of Development in Tunis. It was conducted in the presence of the Minister of Industry and Small and Medium-Sized Enterprises, Selim Feriani, as well as the CEOs of the Tunisian Company of Electricity and Gas (STEG) and the Tunisian public bank BH Bank.

The first agreement, worth 138 million euros in favour of the STEG, relates to the implementation of the project to develop and equip the electricity transmission network. It will allow greater stability of the electricity network and improve the quality of service provision for the benefit of populations. More specifically, this project will finance the acquisition of high and medium voltage transformer stations, the construction of approximately 250 kilometres of electrical connections and the installation of a remote-control device.

On the other hand, the second agreement establishes a line of credit of 100 million euros in favor of the Tunisian public bank BH Bank. Its objective is to strengthen financing activities targeting small and medium-sized enterprises in the health, social housing, industry and renewable energy sectors. The aim is to help diversify the country's production capacity by supporting growth in different sectors.

"These two new operations overlap perfectly to support Tunisian businesses and create new jobs for young people across the country. In the end, that is what matters. The first, which concerns electricity, is one of the prerequisites for the development of renewable energies, which will be accompanied by strong industrial integration at the local level. In synergy with the reform of the financial sector, the second broadens the possibilities of financing, and therefore of development, to new economic actors," the Deputy Director General of the African Development Bank for North Africa, Yacine Diama Fal said.