STEG Liquidity and Restructuring Facility

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

Provision of a sovereign guaranteed loan to Societe Tunisienne de l'Electricite et du Gaz ("STEG" or the "Company") to assist the Company in its reforms and developing Tunisia's electricity sector. The Project combines long-term reform objectives with an immediate response to the COVID-19 crisis.

Project ID 51859

Status Repaying

Location

Tunisia

Business Sector

Energy

Notice Type

State

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Besma Jaafar Ben Nasr
bjaafar@steg.com.tn
+216 71 341 345
www.steg.com.tn
38 rue Kamel Ataturk, 1080 Tunis

Project ID 51859

Status Repaying

Location

Tunisia

Business Sector

Energy

Notice Type

State

Environmental Category

Approval Date

16 Dec 2020

Disclosure date

15 May 2020

Project description

Project objectives

The proceeds of the Bank's loan will be used to (i) provide liquidity support to STEG as an immediate response to the current COVID-19 crisis, and to (ii) refinance existing short-term debt to lengthen the tenors and provide terms more consistent with STEG's operations.

The general objective is the reform and restructuring of STEG and the Tunisian energy sector to achieve long term sustainability. The Project will include a comprehensive corporate reform roadmap, including measures to improve the Company's corporate governance, financial management, strategy & risk, renewable energy integration and procurement.

Transition impact

ETI Score:75

Project will contribute to the (i) Resilient transition quality by providing a working capital facility to STEG and refinance its existing short-term debt, thus easing the current financial pressure on the Company and the (ii) Well-governed transition quality through the adoption and implementation of a Corporate and Climate Governance Action Plan aimed at reforming STEG's overall governance practices.

Client information

SOCIETE TUNISIENNE DE L'ELECTRICITE ET DU GAZ

STEG is Tunisia's 100% state-owned vertically-integrated national electricity and gas utility company, and is under the supervisory of the Ministry of Energy, Mining and Energy Transition. It was founded in 1962 (law-Decree n 62-8 dated on 03/04/1962), when the Tunisian Government decided to nationalise the generation, transmission, distribution, import and export of electricity and gas, entrusting these activities to STEG.

EBRD Finance Summary

EUR 300,000,000.00

Up to EUR 300 million sovereign guaranteed loan to STEG.

Total project cost

EUR 300,000,000.00

A portion of the project will be provided as liquidity support as an immediate response to the current COVID-19 crisis and another portion will be applied to refinance short-term debt.

Environmental & Social Summary

Categorised B (2019 Policy) and low-medium risks. Environmental & Social ("E&S") impacts/risks associated with the provision of liquidity and restructuring facility to STEG are low since the Project does not include Capital Expenditures (CapEx) and STEG is an existing Bank's client who is monitored regularly by an E&S independent consultant. E&S due diligence is undertaken in-house and includes a review of the latest monitoring results and discussions with the Client to assess recent progress on the impementation of the on-going Environmental and Social Action Plan.

Technical Cooperation and Grant Financing

Technical assistance will be provided to the Company for the purposes of:

1) Corporate Governance and Compliance - the assistance targets improvements in the corporate governance structure and decision making capabilities of the Company.

2) Strategy and Risk - support will be provided to develop risk management strategies and risk assessment tools for each business line.

3) Financial Management - the assistance aims at supporting STEG in improving its forecasting and analytical accounting tools.

4) Renewable Energy Penetration - support will be provided to analyse renewable energy integration capacities and to further develop the private production framework.

5) E-Procurement - the assistance aims at widening the use of the electronic procurement platform TUNEPS to extend STEG's procurement opportunities to a wider universe of companies, including small and medium enterprises (SMEs).

Company Contact Information

Besma Jaafar Ben Nasr
bjaafar@steg.com.tn
+216 71 341 345
www.steg.com.tn
38 rue Kamel Ataturk, 1080 Tunis

PSD last updated

20 May 2020

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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STEG Liquidity and Restructuring Facility

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)