Republic of Tunisia

Ghannouch Combined Cycle Power Generating Station (Supplementary Loan)
Loan No: 543 Interest Rate: 3.0 %
Beneficiary: Société Tunisienne deL'Electricité et du Gaz Grace Period: 4 years
Project Cost: KD 148.5 million Maturity: 21 years
Amount of Loan: KD 15.0 million Repayment: 35 semi-annual installments
Date of Board Approval: - First Installment: 5 years following the first disbursement
Date of Loan Agreement: 2009-10-21 Date of Loan Effectiveness: -


Objectives:

The project aims at satisfying the increasing demand for electric power and energy  in Tunisia, by raising the installed generation capacity by about 400 MW. This will be achieved through adding a new generating unit to the existing power station at Ghannouch.

Description:

The project consists of the supply and installation of  a combined-cycle generation unit operating on natural gas as its primary fuel, and interconnecting the power station to the 225 kV power transmission network. It also includes the provision of technical and consultancy services, and institutional support. The project includes the following components:

  1. Power Station Equipment and Installations: This includes design, supply and installation of a combustion turbine, a heat recovery steam generator, a steam turbine, an electric generator, a fuel and circulating water subsystem, protection and control systems, transformers and other electric equipment, in addition to all civil, electrical and mechanical works, along with the supply of spare parts. 
  2. Network Interconnection Equipment: This includes design, supply and installation of two substations, including circuit breakers, transformers, busbars, towers, two 225 kV lines, and monitoring and control systems, along with their accessories. 
  3. Consultancy Services and Institutional Support: This includes consultancy services needed to complete project related studies, and acquisition of systems and software. 

Financing:

The two Arab Fund’s loans, No. 494 and the supplementary loan No. 543, cover about 26.9% of the total project cost. The supplementary loan provides about 18.7% of the project’s financing gap of KD 80.0 million that resulted from the rise in the cost of the main contract for the project, and the contract for interconnection to the transmission grid, in addition to the depreciation of the Tunisian Dinar and the Kuwaiti Dinar against the Euro. Additional financing of the project is made available by a loan from the European Investment Bank for an amount equivalent to KD 42.7 million. The beneficiary’s share will be equivalent to about KD 23.5 million. The Tunisian Government will cover the remaining cost of the project and any additional cost that may arise.