Azernews.Az

Friday March 29 2024

Multilateral Investment Guarantee Agency allocates $750 million loan for TANAP

24 December 2016 10:15 (UTC+04:00)
Multilateral Investment Guarantee Agency allocates $750 million loan for TANAP

The World Bank’s Board of Executive Directors has approved a $750 million loan for Trans-Anatolian Natural Gas Pipeline Project through guarantee of the Multilateral Investment Guarantee Agency (MIGA).

The term of the loan is 15 years, director general of Southern Gas Corridor CJSC Afgan Isayev told Azertag in an exclusive interview.

TANAP project, which is a part of the Southern Gas Corridor, will transport natural gas from a gas field in Azerbaijan to and across Turkey, and further to Europe, aiming to diversify Azerbaijan’s gas export markets and improve the security of the energy supply in Turkey and South Eastern Europe.

Given the importance of the SGC for all countries involved, the project enjoys support of a number of international financial institutions, including the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD), the Asian Infrastructure Investment Bank (AIIB), the Asian Development Bank (ADB), and the World Bank Group (WBG).

The Shah Deniz 2 gas field is being developed to produce 16 bcm per year and the revenues that will be generated from gas production and transportation will be very important for Azerbaijan and its citizens.

The project will contribute to achieving the strategic objectives of the Bank’s partnership with Azerbaijan, in particular, supporting stronger economic competitiveness, by integrating Azerbaijan with regional and European energy markets, strengthening its connectivity and transit role, and increasing its exports.

The construction process of TANAP is currently on track, while the project is completed by almost 55 percent. Some 19 underground passages have so far been built as part of the project.

TANAP shareholders are Azerbaijan’s state oil company SOCAR (58 percent), BOTAS (30 percent) and BP (12 percent).

Azerbaijan became a WB member in 1992. As of September 2016, the Bank allocated loans to the country worth $3.99 billion, while the funds were used to finance more than 70 projects.

--

Follow us on Twitter @AzerNewsAz

Loading...
Latest See more