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.
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.
ETI score: 75
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.
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
Up to EUR 300 million sovereign guaranteed loan to STEG.
Total Project Cost
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
+216 71 341 345
38 rue Kamel Ataturk, 1080 Tunis
PSD last updated
20 May 2020
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Independent Project Accountability Mechanism (IPAM)
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