The Multilateral Investment Guarantee Agency (MIGA) is providing guarantees of up to €13.05 million ($14.86 million) to support the construction of a 100 MW solar project in Sidi Bouzid region.
The project is being developed by Scatec ASA and Aeolus SAS, a company affiliated with Toyota Tsusho Corporation.
MIGA, home of the World Bank Group’s guarantee platform, said the agreement marks its fourth solar independent power producer project in the country.
The 20-year guarantee has been issued to France-based Aeolus SAS, a joint venture between Toyota Tsusho Corp subsidiaries Eurus Energy Holdings Corp and CFAO SAS.
The guarantee supports Aeolus’ investment in project company Scatec Khobna PV Power SARL, which will build, own and operate the photovoltaic facility in Sidi Bouzid’s Mezzouna.
The 120-MWp Sidi Bouzid II solar project also includes about 12 kilometers (7.4 mi) of high-voltage transmission lines. Electricity generated by the plant will be sold to state-owned utility Societe Tunisienne de l’Electricite et du Gaz (STEG) under a 25-year power purchase agreement (PPA).
Financing for the solar farm is being provided by the EBRD and the EIB, while the EU is supporting the project through an EFSD+ guarantee mechanism and a grant. The investment also benefits from reinsurance provided by Japan’s Nippon Export and Investment Insurance.
The project follows MIGA’s 2024 guarantee of EUR 18.45 million for Aeolus’ investments in the Sidi Bouzid I and Tozeur solar projects, which entered commercial operation earlier this year.
