Tunisia awards Elmed cable contract
Prysmian secures 460 million euro deal for 200-kilometer subsea power link to Italy.
Tunisia and Italy's Elmed electricity interconnection project has entered a decisive phase with the awarding of key contracts. The project, linking the two Mediterranean shores via the Strait of Sicily, will have a 600-megawatt bidirectional capacity and an estimated total cost of 1.42 billion euros. Hitachi Energy will build conversion stations in Tunisia and Sicily for approximately 770 million euros, while Prysmian secured the 460 million euro contract for the 200-kilometer subsea cable.
The Elmed project's second phase involves strengthening Tunisia's national grid to integrate renewable energy and transmit power from southern regions. This includes a 400-kilovolt overhead line between Grombalia and Kondar, covering about 85 kilometers, and 20 kilometers of additional connection lines. The European Bank for Reconstruction and Development (BERD) signed a 43 million euro financing agreement on January 15, 2026, for this infrastructure, with the loan to Steg to be repaid over 18 years.
Parliamentary review of the financing guarantee agreement is underway, with a request for urgent examination. The Elmed project is supported by the European Union with a 307.6 million euro grant, alongside funding from the World Bank, BERD, the European Investment Bank (BEI), and Germany's KfW. The subsea link's commissioning is currently planned between 2028 and 2030.
Why it mattersTunisian electricity infrastructure and national grid are being upgraded and financed through international agreements, impacting the national electricity company Steg.