African Development Bank (AfDB) board of directors has approved a US$152mn funding to develop a renewable energy project, Africa.business chief reports.
The finance for the project includes US$119mn from the bank, US$33mn from the Africa Growing Together Fund (AGTF), US$133mn from the Islamic Development Bank (IDB) and US$34mn from the Tunisian Electricity and Gas Company (STEG), the same source said.
“This is a truly structuring project. Its impact will be significant on the quality of electricity supplied throughout the country,” said Mohamed El Azizi, the Bank’s Managing Director for the North Africa Region. “As a result, STEG will be better able to cope with the continued rise in demand and to transport an even larger flow of electricity, including that to be generated by future solar and wind power plants, which are under development,” he added.
The project aims to strengthen the electricity transmission infrastructure, allowing greater stability of the electricity grid and improve the quality of services provided by STEG.
“This operation is one of the prerequisites for the development of renewable energies which will be accompanied by a strong integration of companies, favouring the creation of a new industrial sector generating jobs for young people, said Yacine Diama Fal, the Deputy Director-General and Country Manager of the Bank for Tunisia.