USD 196 million agreement between IDB and the Tunisian Company for Electricity and Gas.

IDB - News - 18 Nov 2008

The Islamic Development Bank Group will sign a USD 196 million (123 million Euro) agreement on Friday, 14 November 2008 with the Tunisian Company for Electricity and Gas (acting on behalf of the government of Tunisia). The project financing is described as the largest financial contribution made by the IDB Group to Tunisia to date, further confirming the remarks made by IDB President Dr. Ahmad Mohamed Ali that in the midst of the current international financial crisis, IDB Group remains unaffected by the crisis and is “financially strong and despite the current market conditions, it will be able to meet its commitment to member countries and conduct its normal operations.”

The agreement will deal with the extension of the Ferian and Thyna Power Plant in Tunisia and includes the financing of works related to the procurement and installation of two gas turbine units, including studies, civil works, and commission as well as supervision. IDB Group President Dr. Ahmad Mohamed Ali, Tunisian Minister for Development and International Cooperation Mohamed Nouri Jouini, and President of the Tunisian Company for Electricity and Gas Osman Ben Arfa will sign the financing agreement.

The proposed project joins an extensive list of 55 projects that the IDB Group launched in Tunisia since 1977 amounting to 534 million Islamic Dinars (or USD 759.8 million). Among the IDB Group modes of financing utilized in Tunisia include equity, loans, istisna'a (manufacturing contracts), and technical assistance (grants) targeted towards electricity, water, agriculture, social services, industrial and banking sectors. The cooperation between the Islamic Development Bank Group and the Republic of Tunisia is a unique model of human development for economic development beyond just direct technical cooperation. Through its partnership with Tunisia, IDB has carried out humanitarian operations such as restoring eyesight to more than 5000 blind men, women and children in more than a dozen African countries.

Tunisia is a beneficiary of the IDB’s Merit Scholarship Programme, by which, IDB provided scholarships to 20 Tunisian science and technology researchers at the doctoral and post-doctoral level to study at reputed institutions in the world. Also, Tunisia has supported the IDB’s Scholarship Programme for Muslim Communities in Non-Member Countries and the M.Sc. Scholarship Programme for LDMCs by helping to place 136 students from French speaking African countries under the Scholarship Programme for Muslim Communities and 19 under the M.Sc. Programme in various universities in Tunisia.