STEG Liquidity and Restructuring Facility

Location:

Tunisia

Project number:

51859

Business sector:

Energy

Notice type:

State

Environmental category:

B

Approval date:

30 Sep 2020

Status:

Concept Reviewed

PSD disclosed:

15 May 2020

Project Description

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 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: 60

The 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 and 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 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 the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social 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 additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from 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 activities of the Bank 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 Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both 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. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. 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 sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. 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.

Project Complaint Mechanism (PCM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g., 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 accountability mechanism.

The accountability mechanism 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 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 our webpage to find out how to submit a complaint through the confidential online form, by email, mail or telephone. We are available to discuss your concerns and answer any questions you may have about the submission or handling of complaints. Complainants’ identities may be kept confidential upon request.

Please note that after the appointment of the new mechanism Head in 2020, the revised Project Accountability Policy and Guidance will come into effect to guide case handling.

 

Share this page: