ADB to attract funds for TAPI project
The Asian Development Bank will act as one of the investors of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project, the Ministry of Petroleum and Mineral Resources of Turkmenistan reported.
This issue was discussed at the last meeting of the Cabinet of Ministers.
President of Turkmenistan Gurbanguly Berdimuhammadov said that the contracts for sale of Turkmen natural gas have already been signed, TAPI Ltd. consortium created and its leader, the Turkmengaz State Concern, determined.
“The participants of this project have come close to the beginning of its implementation,” said the head of state.
The Ministry further announced that in early October in Manila, talks with the leadership of the ADB were held on issues regarding financing of the TAPI gas pipeline project. During the meeting, ADB senior management appreciated the economic development of Turkmenistan and expressed assurance that the largest financial institution led by it will actively participate in the implementation of the TAPI project in the future. The ADB management will keep these issues in focus.
It was noted that the bank doesn’t limit itself to funding, but will render assistance in attracting the credit sides, as well as take part in the coordination of the work to attract other interested funders and investors, said the message.
ADB also “can act as a guarantor before the financiers,” the message said.
The basic document for the promotion of TAPI is the Ashgabat interstate agreement signed between the participating states in 2010 on starting the practical implementation of this project.
The length of TAPI gas pipeline will be 1,800 kilometers, of which 200 kilometers will run though Turkmenistan, 773 kilometers – Afghanistan, 827 kilometers – Pakistan (to Fazilka settlement on the border with India). It is designed to meet the gas demand of the industry of the countries with the population of over 1.5 billion.
The annual pumping capacity of the gas pipeline will be 33 billion cubic meters.
The project cost of TAPI is $10 billion.
The gas pipeline must stretch from the largest gas field in Turkmenistan - Galkynysh.
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