Summary:

On 14 July 2026, Tunisia’s Assembly of the Representatives of the People (ARP) approved two draft laws ratifying World Bank guarantee agreements signed on 3 November 2025 to support financing for the state-owned electricity and gas utility (STEG). 

The agreements guarantee a EUR 384.8 million World Bank loan, alongside additional financing from the Clean Technology Fund, to support a reform program aimed at improving the efficiency, financial performance and governance of Tunisia’s electricity sector. The program includes investments in grid modernization, smart meter deployment and the expansion of renewable energy capacity. 

The government stated that the reforms are intended to address STEG’s persistent financial challenges while strengthening electricity infrastructure and supporting Tunisia’s longer-term energy transition objectives. 

Outlook: 

While the World Bank-backed financing provides the government with additional room to pursue STEG’s restructuring, it also reinforces a growing debate over the state’s continued reliance on external borrowing to address structural deficiencies in strategic sectors. The parliamentary discussions and public criticism surrounding the agreement suggest that future external financing is likely to face closer political scrutiny. 

However, the reforms will be judged against current service delivery rather than their long-term objectives. With heatwaves exposing persistent weaknesses in electricity and water supply, and limited communication from STEG over recurring outages, public attention is shifting from the financing itself to the government’s ability to translate these reforms into tangible improvements. 

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