Azernews.Az

Thursday May 19 2022

EIB to allocate €1B for TANAP construction

5 February 2016 11:48 (UTC+04:00)
EIB to allocate €1B for TANAP construction

By Aynur Karimova

The European Investment Bank plans to allocate €1 billion to the construction of the Trans-Anatolian pipeline, a vital part of the giant Southern Gas Corridor envisaging transportation of gas from Azerbaijan’s Shah Deniz field on the Georgian-Turkish border to the western borders of Turkey.

EIB Vice-President Pim van Ballekom said that these funds will be used to finance the stake of Turkish Botas State Pipeline Company in TANAP, while other part of the funds will be allocated by the World Bank, Bloomberg reported.

"It is expected that the Bank will approve the loan by late April 2016, and the first tranche will be allocated in August," he noted.

Last November, Bloomberg reported that Botas was in negotiations with the EIB and the WB to draw loans worth $2 billion to finance its stake in TANAP.

The sources dealing with the situation said some $1.07 billion is expected to be allocated by EIB, while $1 billion – by WB.

"Both loans will be long-term, but the conditions of their drawing are under discussion. Perhaps, the loans will be delivered under the state guarantees," they said.

In January 2016, the EU countries agreed on a Commission proposal to invest €217 million in key trans-European energy infrastructure projects, mainly in Central and South Eastern Europe.

Fifteen projects were selected following a call for proposals under the Connecting Europe Facility, an EU funding program for infrastructure. The TANAP project also was among these projects. According to the decision, the EU will allocate €2.219 million to TANAP.

TANAP’s initial capacity is expected to reach 16 billion cubic meters of gas per year. Some six billion cubic meters of this gas will be delivered to Turkey and the rest will go to Europe. The capital costs of the TANAP project are expected to stand at $9.5 billion.

--

Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova

Follow us on Twitter @AzerNewsAz

Loading...
Latest View more