The African Development Bank AfDB has granted $154 million funds to the Tunisian Electricity and Gas Company, STEG. This is in a bid to accomplish its projects to develop and equip the power transmission grid – PAERTE.
STEG is a public-owned electricity firm established in 1962 by the Tunisian government. It is saddled with the mission to provide and distribute electricity and natural gas in the country.
Since its inception, STEG has been providing electricity in Tunisia. Unfortunately, the firm’s effort couldn’t generate the nation constant power supply due to a lack of funds to purchase equipment.
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It is on this backdrop that AfDB released the fund to STEG to strengthen the provision of electric transmission infrastructure, provide stable electricity grids, and improve the quality of energy services offered to customers.
PAERTE project is expected to cost approximately 802 million and will be co-funded by the Islamic Development Bank – IDB.
When broken down, the $153 million comprises of a $120 million loan and a $33million grant from the AfDB’s Administered Africa Growing Together Fund(AGTF).
The North Africa Managing Director of AfDB, Mohammed El Aziz expressed great satisfaction on the released fund by its board of directors. He noted that the fund will help STEG deal with increasing electricity demand and provide a larger electric flow, especially with the solar and wind power plant currently been constructed.
The funds will, therefore, enable the purchase and installation of high- and medium-voltage transformer stations with 250 kilometers of electrical connections and a remote-controlled device.
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