Tunis -A financing and guarantee agreement worth €43 million (about 145 million dinars) intended to fund the implementation of the second phase of the electricity interconnection project between Tunisia and Italy (ELMED 2) was signed on Thursday in Tunis between Tunisia and the European Bank for Reconstruction and Development (EBRD).

ELMED 2 aims to strengthen the electricity grid of the Tunisian Electricity and Gas Company (STEG) through the installation of overhead transmission lines, including incoming and outgoing lines in the governorate of Nabeul.

The project involves the installation of a 400-kilovolt (kV) overhead electricity transmission line of approximately 85 kilometers, linking Grombalia, Nabeul to Kondar, Sousse and crossing four governorates, namely Nabeul, Ben Arous, Zaghouan, and Sousse.

It also includes the installation of incoming and outgoing overhead lines between Ezzahra and Grombalia 1, connected to the Grombalia 2 400/225 kV substation, with a total length of around 10 km, according to the project brief.

In addition, the project provides for the installation of incoming and outgoing overhead lines between Seltene and Grombalia 1, also connected to the Grombalia 2 400/225 kV substation, with a total length of approximately 10 km.

Minister of Economy and Planning, Samir Abdelhafidh, stated that the loan will be repaid over 18 years, including a five-year grace period.

He explained that the signing comes at a particular time marked by the scale of energy challenges to be addressed, but above all by historic opportunities to accelerate the energy transition, strengthen security of supply and consolidate regional integration in this field.

He stressed that the project, which is a key component of the ELMED ecosystem, is an essential link for its effective deployment.

The project will facilitate the large-scale integration of renewable energies, enhance the stability and reliability of the national electricity grid and coherently complement the submarine interconnection program between Tunisia and Italy.

Beyond its technical dimension, ELMED 2 has major strategic significance, as it fully aligns with national priorities in terms of energy transition, diversification of the electricity mix, and positioning Tunisia as a regional energy hub linking North Africa to the European electricity market, Abdelhafidh added.

He also noted that the choice of the EBRD to finance this component once again reflects the convergence of visions and the mutual trust that has steadily strengthened over more than a decade of cooperation.

The success of this project will undoubtedly serve as a benchmark for regional cooperation, sustainable development financing, and transition efforts, he concluded.

For her part, EBRD President Odile Renaud-Basso welcomed the progress of the energy transition in Tunisia, stressing that the financing marks an important milestone in strengthening energy infrastructure.

She described ELMED 2 as a catalytic decarbonisation project that will reduce Tunisia’s dependence on imported gas and contribute to achieving the country’s objective of reaching 35% renewable energy in its energy mix.

She added that the project will also promote inclusion through skills development for young people and improved access for women to energy-related professions and innovative projects.

The EBRD President recalled that since the launch of the Bank’s operations in Tunisia, total investments have reached €3 billion, covering various sectors, particularly the private sector, with the aim of creating jobs.

She further noted that 2025 was a significant year, with financing exceeding €400 million, targeting in particular the energy, phosphate, water, and transport sectors, as well as SMEs and private companies, notably through banks.

“We have also launched a programme to support young entrepreneurs with the backing of the European Union (EU),” she said.

For the current year (2026), priorities will remain similar, with substantial investments planned in energy, water, the transformation of public enterprises, SMEs, and innovative companies.

CEO of STEG, Faisal Trifa, explained that ELMED 2 will strengthen STEG’s transmission network through a 400 kV line linking Kondar and Grombalia (85 km) and around Grombalia (20 km).

It will enable the transfer of energy produced mainly in the south to the north and major consumption centres, as well as the export of part of this green energy to Europe.

EBRD President Odile Renaud-Basso is currently visiting Tunisia (15–16 January 2026).

During her visit she is expected to meet senior Tunisian government officials, local and international partners and public- and private-sector clients, according to an EBRD statement.

She is accompanied by Nodira Mansurova, Head of EBRD Operations in Tunisia, along with a high-level delegation from the Bank.

Since launching its operations in Tunisia in 2012, the EBRD has invested more than €3 billion in 89 projects across the country, 65% of which were in the private sector.

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