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- Natural Gas Distribution Development Project-II
Natural Gas Distribution Development Project-II
Tunisia
| Borrower | Tunisia |
| Financing Type | Public Sector |
| Instrument | Blend Facility |
| Focus Area | Energy |
| Approved | 11.03.2009 |
| Signed | 31.08.2009 |
| Status | Completed |
| Loan Administrator | OPEC Fund |
| Executing Agency | Tunisian Company of Electricity & Gas- STEG. |
| Co-financiers | Government |
| OPEC Fund Contribution (US$m) | 30.00 |
| Total Project Cost (US$m) | 35.54 |
In 2006, OFID extended a $20 million loan to Tunisia to co-finance construction of a natural gas pipeline in the Southeast. The project is currently facing shortfalls in financing, owing to substantial increases in the price of construction materials and transport. Cost overruns also occurred after it was decided to provide extra connections, necessitating the lengthening of the entire pipeline from the originally-planned 211 km to 250 km. The enhancements will boost the network’s delivery capacity from 300 million m3 to 700 million m3 of fuel per year.