Tunisia and the World Bank have concluded a new financing agreement to support the Program to Improve Energy Dependence, Efficiency and Governance in Tunisia (TEREG). This strategic partnership, worth a total of $430 million — including $30 million in the form of concessional financing — will extend over a period of five years.
The main objective of the program is to modernize the Tunisian energy sector, strengthen the security of supplies and guarantee the sustainability of electricity services. It is fully in line with the national energy transition strategy, updated by the Tunisian government.
TEREG focuses on the development of renewable energy projects, improving the performance of the Tunisian Electricity and Gas Company (STEG), and consolidating the governance of the sector in order to ensure regular, affordable and environmentally friendly services for households and businesses.
Financial incentive framework
According to Amira Kalibi, Senior Energy Specialist at the World Bank and project team leader, this is the first program to benefit from the financial incentive framework put in place by the World Bank. This mechanism recognizes the positive and lasting impact of such projects on reducing pollution and harmful emissions.
Kalibi clarified that the reforms included in the program — notably the reduction of technical and commercial losses as well as the increase in the share of renewable energies — will make it possible to sustainably improve the operational and financial performance of the electricity sector, while making electricity more stable and more affordable for citizens and businesses across the country.
For his part, Alexander Arrobbio, director of the World Bank office in Tunisia, stressed that this project illustrates the solidity of the partnership between Tunisia and the World Bank. It supports national ambitions for sustainable development and clean energy, while strengthening Tunisia’s position in the field of renewable energy, creating new economic opportunities and ensuring long-term energy security.
