Announcement of Tunisia Receives Fourteen Million Five Hundred Thousand Dollars Loan for Power Supply on December 27, 1976

REVISED COPY -------- •World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. • Telephone: (202) 393-6360 BANK NEWS RELEASE NO. 77/45 December 27, 1976 TUNISIA RECEIVES $14.5 MILLION LOAN FOR POWER SUPPLY Tunisia's decision to expand her electric power generating capacity will be assisted by a $14.5 million loan announced today by the World Bank. Re- cipient of the loan is the Societe Tunisienne de l 'Electricite et du Gaz (STEG) a government-owned corporation which is responsible for the production, trans- mission and distribution of electricity and gas in Tunisia. The loan will finance 58% of the foreign exchange cost of installing seven new gas turbine units as part of STEG's 1977-1981 development program for elec- • tricity generation. The total cost of the project is $29.3 million with a foreign exchange component of $25.l million. A consortium of private French and Tunisian banks are expected to contribute approximately $9.2 million; and the remaining foreign exchange costs amounting to $1.4 million will be provided by STEG itself. The local currency costs of $4.2 million will also be financed by STEG. The main objectives of the project are to ensure continuity of Tunisia's electricity supply; to cover the need for peak power capacity; and to allow STEG to implement its next expansion program with larger and more efficient turbine units. Lending for the project will also enable the World Bank to con- tinue to cooperate with STEG in connection with several studies which are important to STEG's future development and to the energy sector in Tunisia. • The World Bank loan is for 14 years including 2-1/2 years of grace, with interest at 8.7 percent per annum. NOTE: Money figures are expressed in U.S. dollar. equivalents FORM NO. 1121 (5-76) T E C HN CA L DA T A • I PROJECT: Second Power COUNTRY: Republic ?f Tunisia TOTAL COST: $29. 3 mi 11 ion BANK FINANCING: $14.5 million, 14 years, including 2-1/2 years of grace, w1th annual interest at 8.7 percent. OTHER FINANCING: Societe Tunisienne de 1 'Electricite et du Gaz (STEG) Consortium cf private Tunisian and French banks with the guarantee of the Compagnie Francaise d'Assurance pour le Commerce Exteriur (COFACE). · IMPLEMENTING ORGANIZATION:. Societe Tunisienne de 1 'Electricite et du Gaz (STEG) 38 Rue Kemal Ataturk, Tunis, Tunisia Cabe: GAZELEC, Tunis; Telex: 12020 PROJECT DESCRIPTION: The project is the gas-turbine component of STEG's 1977-1981 development program for electricity generation. It consists of about 150 MW in seven gas turbine units of equal size to be installed two each in Sfp and Menzel Bourguiba, and one each in Tunis South, Korba and Metlaoui. The main object are to ensure continuity of electricity supply; to cover the need for peak power capacit ; and to allow STEG to implement its next expansion program with larger and more efficient steam turbine units than would be possible without the prior installation of gas turbine units. PROCUREMENT: STEG has already awarded the contract for the procurement of the seven gas turbines in accordance with the World Bank Guidelines for Procurement, in order to take advantage of favorable prices. RATE OF RETURN: At least 13.2% at present electricity prices. ESTIMATED COMPLETION DATE: December 1980 - 0 - •