WB holding talks in Baku to finance TANAP
Baku, Azerbaijan, Oct. 17
By Azad Hasanli – Trend:
The mission of the World Bank (WB) is holding talks in Baku to finance the construction of the Azerbaijani part of the Trans Anatolian Pipeline (TANAP) project, the WB Baku office told Trend Oct. 17.
The corresponding mission of the bank has arrived today, on Oct. 17, the WB Baku office said. Specific information on the progress of the mission’s work will be provided later.
Earlier, Larisa Leshchenko, the former head of the WB Baku office, told Trend that the WB continues discussions on the issue of financial support to the Azerbaijani part in the TANAP project.
It is too early to speak about the volume of financing, because, currently, the discussion and preparation processes are being conducted, she added.
If the project is approved, it will increase the volume of TANAP's financing, noted Leshchenko.
Perhaps, the financing will be by the International Bank for Reconstruction and Development (IBRD), she said adding that meanwhile, it is possible that the WB will provide loan guarantees through the Multilateral Investment Guarantee Agency (MIGA, an institution of the World Bank Group).
The WB is in negotiations simultaneously with Turkey's Botas Petroleum Pipeline Corporation and Southern Gas Corridor CJSC for financing TANAP.
Moreover, it is expected that additional $1.07 billion will be allocated by the European Investment Bank (EIB) for TANAP.
The loans will be long-term, and will possibly be provided under state guarantee.
TANAP project envisages transportation of gas of Azerbaijan's Shah Deniz field from the Georgian-Turkish border to the western borders of Turkey. Turkey will get gas in 2018 and after completing the construction of Trans Adriatic Pipeline (TAP), gas will be delivered to Europe in early 2020.