Positive
Project advancing - milestone achieved
High Impact
Major milestone or critical setback
On 16 January 2026, the Tunisian government signed a €43 million (≈145 million dinars) financing and guarantee agreement with the European Bank for Reconstruction and Development to fund the second phase of the ELMED interconnection programme — the "Grid Reinforcement Program" that strengthens STEG's Tunisian transmission backbone so the 600 MW HVDC link can be fully utilised. The loan funds a new 400 kV overhead line of approximately 85 km connecting Grombalia (Nabeul) to Kondar (Sousse) across four governorates, plus around 20 km of incoming/outgoing 400 kV lines linking Ezzahra and Seltene to the Grombalia 1 and 2 substations. STEG General Manager Faisal Trifa described the lines as enabling the transfer of energy mainly produced in southern Tunisia to the north and main consumption centres, and the export of part of the country's green energy to Europe via ELMED. Repayment is over 18 years with a five-year grace period. Tunisia's Minister of Economy and Planning Samir Abdelhafidh described ELMED 2 as "a key component of the Elmed ecosystem, essential for its full operational capability". EBRD President Odile Renaud-Basso called the project "a catalytic project for decarbonisation". The agreement is additional to the €45 million EBRD sovereign loan signed in December 2023 for the submarine cable scope.