Rural Electrification Institutional Experience: Case of TUNISIA

1. Ahmed Ounalli(*) Director, Strategic Studies Group-STEG Energy Week at the World Bank 6-9 March 2006 (*) ESMAP Study prepared by: E. Cecelski, A. Ounalli, M. Aissa, J. Dunkerly Rural Electrification Institutional Experience: Case of TUNISIA

2. RURAL ELECTRIFICATION RATE BY REGION2004 OVERAL Electrification Rate98.9%National Rural ER 97%

3. 1962: Tunisian Electricity & Gas Company (STEG) 1973 – 1976: technical & economic studies lead to low cost three phase/single phase MALT Origins of the Program

4. Tunisia’s Rural Electrification Program,1972-2004

5. MALT Configuration 3- Phase MV main line Neutral Fuse Cutout Neutral 1- Phase MV branch 1- Phase transformer 1- Phase LV lines Rural area

6. EDUCATION (human resource development and legal rights) HEALTH (family planning) RURAL ELECTRIFICATION (coordination with above) Three Pillars of Rural Development

7. Rural Village Electrified from a single-phase line

8. Oumda/Rural households Governorates Delegation STEG-District Represents rural hhlds Political authorities Implements electrification program LOCAL LEVEL ACTORS AND MAIN FUNCTIONS

9. Ministry of Economic Development and Commissariat Général de Dévelopment Rural (CGDR) Ministry of Industry and Energy STEG ANER National Solidarity Fund (FNS), Presidential Fund National Socio-Economic Plan: infrastructure investment for 5 years Funding of Plan Define national program for RE Implementation from grid Implementation from PV Extra-budgetary funding NATIONAL LEVEL ACTORS AND MAIN FUNCTIONS

10. Responsibilities for Rural Electrification in Tunisia

12. Modern milk cow farming on an electrified farm

13. Silo for local wheat harvest located in rural area

14. Five Year Plan targets areas for rural development based on income unemployment environmental quality gender status expected rate of return costs of job creation improved living conditions Potential RE projects and beneficiaries identified within areas selected at regional level linked with rural development plans (health, education, water, roads) Selection process: political level

15. Construction of cost estimates by STEG at district level (site visits, feasibility study) STEG provides cost scenario table to national level planners at MDE: Number of households and costs by cost level and by Governorate MDE selects projects by setting cost ceiling Five year plan is finalized and regional level receives funds Selection process: STEG

16. COST CEILING

17. Regional Development Programme (PRD) Integrated Rural Development Programme (PRDI) Presidential Fund National Solidarity Fund Since 1977: external debt (ADB, World Bank, AFD, Kuwait Fund) Photovoltaic program: suppliers, WB credits, NGOs Financing Rural Electrification

18. BUDGETARY FUNDS FOR AGREED CEILING (example of 9th Plan : 2200 DT ): How connection to the grid is financed • EXTRA-BUDGETARY FUNDS (>2200 DT): • - National Solidarity Fund • - Presidential Fund

20. Installing an electric pole

21. National commitment: education, health, rural electrification with social equity Integrated rural development context: synergy effects of regional planning process Effective institutional approach: well-defined, coordinated roles fair, established procedures including political Reasons for Success - 1

22. Well managed and innovative utility: effective and efficient Lowering costs for rural electrification: capacity to adapt technology to meet Tunisian needs Effective tariff policy: financial viability Complementary PV strategy: commitment and coordination Reasons for Success - 2

23. Goal of providing electricity services to widely scattered rural populations in Africa is ACHIEVABLE Need to adapt technology and financing procedures to local context Need for strong and consistant support from the State Conclusions

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