World Bank approves USD 268 mn Tunisia-Italy interconnector: The World Bank Group (WBG) signed off on Wednesday on a USD 268.4 mn loan to Tunisia that will be used to finance its planned electrical interconnection project with Italy, the bank noted in a statement.

The project: Dubbed Elmed, the 600 MW subsea interconnector would link the Tunisian and EU power grids, enabling the trade in renewable energy between Tunisia and Europe, the statement said. The project is estimated to cost EUR 850 mn (c.USD 929 mn), according to Reuters. The project’s launch date has not been revealed.

Where exactly is the money going? The funds will be used to build a main converter station and accompanying substations on the Tunisian side as well as support the implementation of the interconnector, the statement notes.

Who else is on board? The Elmed interconnector — which is set to receive an additional USD 25 mn in concessional loans from the Green Climate Fund — is backed by the European Union, the government of Italy, the German Development Bank KfW, the European Bank for Reconstruction and Development, and the European Investment Bank, according to World Bank statement.

Tunisia is also getting a renewables center of excellence courtesy of WBG: As part of its technical assistance package, the World Bank is also planning to set up a renewable energy center of excellence in Tunisia in a bid to position the country “as a training hub for renewable energy projects in the North Africa region,” the statement said.

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