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EBRD eyes investing in TAPI pipeline

24 May 2016 15:46 (UTC+04:00)
EBRD eyes investing in TAPI pipeline

By Fatma Babayeva

Turkmenistan's President Gurbanguly Berdimuhamedov and head of the European Bank for Reconstruction and Development (EBRD) Suma Chakrabarti, who was on official visit to Ashgabat, have discussed the possibility of EBRD's participation in Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project.

Chakrabarti praised the measures taken in Turkmenistan for strengthening the national financial and banking system, noting that those measures enabled the country to ensure domestic economic stability and maintain high-rates of socio-economic growth, the Turkmen government reported.

The EBRD head pointed out that he supports Turkmenistan's strategy for economic diversification and improving the activities of financial and banking structures.

The sides discussed the prospects for further developing the cooperation as well. They held detailed discussions on the proposals for implementation of new projects in the oil and gas sector and other key areas of economy.

The main document for the TAPI, so called the Ashgabat Interstate Agreement, was signed in 2010. The groundbreaking ceremony for TAPI's Turkmen section was held in mid-December of 2015.

The estimated cost of the project exceeds $10 billion. The annual capacity of the gas pipeline will reach 33 billion cubic meters. It is planned that the total length of the TAPI pipeline will be 1,814 kilometers. Some 214 kilometers will pass through the territory of Turkmenistan, 774 kilometers through Afghanistan and 826 kilometers through Pakistan.

TAPI project is expected to be completed in late 2019.

The Islamic Development Bank will participate in financing of the project as well.

The implementation of the project will significantly increase Turkmenistan's gas supplies to world markets.

Experts believe that the implementation of the TAPI pipeline project would represent an enormous breakthrough for Turkmenistan's capabilities as an international energy player.

TAPI is also seen as an opportunity to pave the way for stability in Afghanistan and could contribute to the rehabilitation of the war-torn country.

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Fatma Babayeva is AzerNews’ staff journalist, follow her on Twitter: @Fatma_Babayeva

Follow us on Twitter @AzerNewsAz

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