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Islamic Development Bank to take part in financing of TAPI

Turkmenistan Materials 18 May 2016 14:34 (UTC +04:00)

Ashgabat, Turkmenistan, May 18

By Huseyn Hasanov- Trend:

The Islamic Development Bank (IDB) will take part in financing of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project, Neutral Turkmenistan newspaper reported May 18.

Negotiations of representatives of the IDB and Saudi Fund for Development (SFD) with the governing committee on TAPI project were held in Ashgabat. The meeting was dedicated to the development and adoption of an investment agreement to finance 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.

"Implementation of TAPI project 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 international cooperation in the region," said the article.

The main document for the TAPI, 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 will exceed $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 - Afghanistan, 826 kilometers - Pakistan.

The project is expected to be completed in late 2019.

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