The African Development Bank (AfDB), on Tuesday, granted two lines of credit totaling €238 million (nearly 760 million dinars -MD-) to STEG and BH Bank.
The first line of credit, in the order of €138 million, or 440 MD, is intended to finance the implementation of the Project to develop and equip the electricity transmission network (Paerte).
It is repayable over 20 years, including 5 years of grace, with an interest rate of 0.34% annually.
The total cost of the project is €290 million, equivalent to 992 MD, including €108 million in the form of an AfDB loan, €30 million as a loan from the Africa Growing Together Fund (a Chinese fund co-financed by the AfDB), €121 million from an IsDB loan and €31 million in contribution from STEG.
This Project, which will be implemented over five years (2020-2024), is part of the electricity transmission program of the 13th Plan (2016-2020).
It aims to improve the performance of the national electricity transmission network in order to meet the country’s growing demand for electricity and contribute to economic and social development.
It will increase the transmission capacity of transmission and electricity distribution lines, thereby promoting the integration of locally produced renewable energies, reducing technical loss rates and improving the quality of services.
The second line of credit worth €100 million, i.e. 320 MD, granted to BH Bank, is intended to support SMEs.
The loan, repayable over 10 years, including 3 years of grace, with an interest rate of 0.36%, will provide SMEs active in the fields of health, social housing, industry and renewable energies the opportunity to increase their production and employment capacities and their competitiveness.
The two guarantee agreements relating to these lines of credit were signed Tuesday at the headquarters of the Ministry of Development, Investment and International Cooperation by the Acting Minister in charge of this department Ridha Chalghoum and Deputy Director General of the AfDB’s Regional Office for North Africa Yacine Fall, in the presence of Minister of Industry and SMEs Slim Feriani, and the CEOs of STEG and BH Bank.