Pakistan to repay Iranian loan after peace pipeline inauguration
Azerbaijan, Baku, Feb.13/ Trend F.Milad
Pakistan will pay back Iran's $500-million loan after peace pipeline's inauguration.
The agreement was reached at the second day of the two countries' bilateral talks in Islamabad, the Fars News Agency reported.
The pipeline is projected to come on stream in 2014.
Iran and Pakistan have devised a plan to finance the gas pipeline on Pakistan's side without the need for Islamabad to transfer funds to Tehran.
Based on the agreement, Tehran will grant a $500-million loan to Tehran-based Tadbir Energy Development Group, which is responsible for laying a pipeline in Pakistan under the multi-billion-dollar project.
In the first phase, Iran will lend 250 million dollars and extend the assistance later to 500 million dollars.
Tadbir Energy Development group has agreed to complete the project in 15-16 months.
The Iran-Pakistan gas pipeline, projected to cost 1.2-1.5 billion dollars, would enable the export of 21.5 million cubic meters of Iranian natural gas to Pakistan on a daily basis.
Iran has already constructed more than 900 kilometers of the pipeline on its soil.