The Saudi Fund for Development (SFD) on 25 September signed an agreement to loan Tunisia TD331mn ($210m) at concessionary rates. Over 90% of this is earmarked for energy projects. Repayments will be over 20 years at an annual interest rate of 2%. In addition this will only kick in after a five year grace period.
Over half – some $114mn – will go towards the $440mn construction of a new 400mw combined cycle gas-fired power plant in the coastal city of Sousse around 100km south of Tunis. The Islamic Development Bank last month agreed to loan Tunisia $196mn for the same project. OPEC’s international development fund is set to supply a further $50mn. (CONTINUED - 180 WORDS)