Project description  

 As part of the Government of Tunisia (“GoT”) commitment to reduce greenhouse gas emissions (“GHG”) under the Paris Agreement and its updated Nationally Determined Contributions, and to meet electricity demand growth, while reducing the fiscal burden of importing gas, the GoT has an ambitious plan to increase the renewable energy share to 35% of the overall country’s energy mix by 2030. Toward this, in the end of 2019, the GoT awarded Scatec ASA (Norway) through a competitive bid concession to design, finance, build, own, and operate two grid-connected photovoltaic (“PV”) solar power plants located in the Tozeur Governorate, approximately 450km south of Tunis, and Sidi Bouzid Governorate, approximately 260km south of capital, each with a capacity of 50 MW. (the “Projects”). SCATEC ASA partnered with AEOLUS SAS (France) for the implementation of the Projects (“the Guarantee Holder”). The Projects are expected to be financed by EBRD and Proparco.   

 The Proposed MIGA Guarantee will cover the equity, shareholder loan, and/or quasi-equity investments of the Guarantee Holders in the Projects with an amount up to €52.25 million against the risks of Transfer Restriction and Currency Inconvertibility, War and Civil Disturbance, Expropriation, and Breach of Contract for a period up to 20 years.  

 Environmental Categorization  

The Projects are Category B under MIGA’s Policy on Environmental and Social Sustainability (2013). Click here to view the Environmental and Social Review Summary. 

Development Impact  

 The Projects are expected to yield high development impact in Tunisia with main benefits expected to be: (i) improved sustainability of energy sector through decreasing Tunisia’s average cost of electricity generation; (ii) reducing the dependency of Tunisia energy sector on the imported gas and reduce its vulnerability to the volatile gas prices, while diversifying its energy mix; (iii) climate mitigation benefits through GHG emissions avoidance; and (iv) demonstrating the viability of the IPP model in Tunisia’s energy sector