Tunisia has secured $430 million in funding for a sweeping five-year initiative aimed at strengthening its electricity sector through renewable energy expansion, improved utility performance, and enhanced governance.

The Tunisia Energy Reliability, Efficiency, and Governance Improvement Program (TEREG), which includes $30 million in concessional financing, is designed to help provide more reliable, affordable, and sustainable electricity across the country.

According to a statement issued Tuesday, the World Bank and the Government of Tunisia concluded a financing agreement to support the country’s energy sector modernization through the Tunisia Energy Reliability, Efficiency, and Governance Improvement Program.

It will support reforms that boost the operational and financial performance of STEG, the national utility, while creating conditions to attract private investment and cut the carbon intensity of electricity production.

“By fostering renewable energy development, TEREG will strengthen Tunisia’s position in clean energy, creating economic opportunities and ensuring long-term energy security,” said Alexandre Arrobbio, World Bank Country Manager for Tunisia.

He added that the project builds on existing regional and national initiatives, including integration projects and technical support services.

The program aims to add 2.8 gigawatts of new solar and wind capacity by 2028, draw in $2.8 billion in private capital, and create more than 30,000 jobs, mainly tied to renewable project construction.

It also targets a 23 percent drop in electricity supply costs, improved cost recovery at STEG from 60 to 80 percent, and a reduction in government subsidies amounting to 2.045 billion Tunisian dinars.

Amira Klibi, the project’s lead energy specialist, said the funding is the first to benefit from the World Bank’s Framework for Financial Incentives.

She said reforms tied to the program such as cutting losses and boosting the renewable share are expected to deliver lasting improvements in affordability and service quality.

TUNIS, Tunisia – Bantu Gazette