IDB to join financing of TAPI gas pipeline
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By Fatma Babayeva
The Islamic Development Bank will participate in financing of Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project, Neutral Turkmenistan newspaper reported on May 18.
Negotiations were held between representatives of the IDB and Saudi Fund for Development with the managing committee of TAPI project at Turkmengaz –a consortium leader of Pipeline Company Limited- in Ashgabat.
The meeting discussed development and adoption of an investment agreement for financing the construction of the main gas pipeline in Turkmenistan’s territory.
Participation of financial institutions in the project is expected in three main areas: to provide the project with pipe products, gas equipment and the provision of loans on investment lines with the prospect for Asian companies to be involved in the development of the largest Galkynysh gas field in Turkmenistan.
The TAPI project realization will bring great benefits not only to gas exporters, transit countries and consumers, but also will give a powerful impetus to the strengthening of peace, stability, as well as, development of the international cooperation in the region, according to the Turkmen side.
TAPI gas pipeline will make it possible to deliver gas from Turkmenistan, which ranks fourth in the world for the huge gas reserves, to the large and promising markets of South and Southeast Asia.
The TAPI project realization will help Turkmenistan to diversify its gas export routes and contribute to the economic growth of the country as well and overall, enhance energy security in the region.
Many believe the construction of TAPI could contribute to the rehabilitation of the war-torn Afghanistan.
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.
The project is expected to be completed in late 2019.
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