On Friday 16 December, the Tunisian Ministry of Economy and Planning and the European Investment Bank (EIB) signed a finance contract with Office des céréales and another with Société tunisienne de l’électricité et du gaz (STEG), with the two agreements totalling €215 million. This new financing is being provided via EIB Global, the EIB’s new international partnership and development finance arm. It is part of the EIB’s wide-ranging activity in Tunisia to support food security and electricity supply, against a tense international backdrop of strong demand for both food and energy.
The financing is fully in line with EU priorities for Tunisia and the Agenda for the Mediterranean, and is covered by the Neighbourhood, Development and International Cooperation Instrument (NDICI-Global Europe) guarantee. It should also benefit from a €20 million EU grant under the Neighbourhood Investment Platform (NIP).
The signature ceremony held at the Ministry of Economy and Planning was attended by Minister of Economy and Planning Samir Saïed, Minister of Agriculture and Water Resources Elyes Hamza, Ambassador of the European Union to Tunisia Marcus Cornaro, EIB Director for Operations in EU Neighbouring Countries Lionel Rapaille, Head of the EIB’s Regional Office in Tunisia Jean-Luc Revéreault, STEG CEO Hichem Anene and Office des céréales CEO Bechir Kthiri.
Minister of Economy and Planning Samir Saïed stressed that “the financing signed for Office des Céréales is part of the Tunisian government’s efforts to mitigate the effects of the global crisis by taking necessary and appropriate action to cover the unforeseen cost of urgent grain purchases, and to improve the performance of Office des Céréales, particularly in terms of infrastructure and governance. The second finance contract for STEG is part of its programme to strengthen its electricity transmission network and renew its electricity distribution system.”
He expressed his appreciation for the strong partnership between Tunisia and the European Union, including the EIB, adding: “this partnership has continued to develop, particularly over the last decade, highlighting a desire to strengthen it on all levels.”
Expanded support for food security
At the signature ceremony, EIB Director for Operations in EU Neighbouring Countries Lionel Rapaille signed a €150 million finance contract with Office des céréales CEO Bechir Kthiri, with the dual aim of modernising grain storage and transport infrastructure and increasing supply capacity for imported wheat. This financing will also enable the purchase of soft wheat on international markets.
The operation is part of the support provided to Tunisia to strengthen its resilience to food shortages caused by climate change and food price increases exacerbated by the war in Ukraine.
“I am very pleased to sign this finance contract with Office des céréales,” said EIB Director for Operations in EU Neighbouring Countries Lionel Rapaille. “This major funding will strengthen Tunisia’s food security in the face of climate change and the global grain crisis. The project will have a significant impact on the daily lives of Tunisians. This is why we are very proud to finance it via EIB Global, our new international partnership and development finance arm.”
Better access to electricity
EIB Director for Operations in EU Neighbouring Countries Lionel Rapaille also signed a €65 million finance contract with Société tunisienne de l’électricité et du gaz (STEG) CEO Hichem Anene.
This funding will help to strengthen and renew electricity transmission and distribution grids while also adding new generation capacity to improve electricity supply security. Medium and low voltage distribution grids will be extended and strengthened across the country (in the Centre, Greater Tunis, North, North-West, South, South-West and Sfax regions), covering 4 500 km of medium and low voltage power lines. The project will also strengthen the connection of new generation units as electricity demand grows.
“The EIB is a long-standing partner of STEG and the Ministry of Industry, Energy and Mines. I am pleased with this new financing via EIB Global, our new international partnership and development financing arm, to improve the reliability of the electricity grid and energy supply for Tunisians,” said EIB Director for Operations in EU Neighbouring Countries Lionel Rapaille following the signature. “This new funding reaffirms our strong commitment to helping Tunisia to ensure its energy independence and strengthen energy efficiency and the fight against climate change.”
This new financing is in line with Tunisia’s energy and food security priorities. It is part of the efforts of EIB Global, working closely with Team Europe and national and international partners.
Background information
EIB
In the Mediterranean region, the EIB is committed to helping partner countries achieve sustainable development and growth. The EIB offers financial and advisory services tailored to the needs of project promoters in these countries. Large-scale infrastructure investments, loans for small and medium enterprises, guarantees for riskier projects, technical advice to ensure optimum project design and partnerships for new entrepreneurs are all services provided by the EIB. In response to the changing environment in the Mediterranean region, the EIB continues to diversify its range of instruments to boost employment and sustainable growth.
Since 2011, the EIB has committed €2.3 billion to financing projects in key sectors of the Tunisian economy such as energy, private sector support, infrastructure, education and social housing.
EIB Global
EIB Global is the EIB Group’s specialised arm dedicated to increasing the impact of international partnerships and development finance. It is designed to foster strong, focused partnership within Team Europe, alongside fellow development finance institutions and civil society. EIB Global brings the Group closer to local people, companies and institutions through our offices across the world.
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