Azerbaijan, Baku /corr Trend I.Khalilova / The Azerbaijan Investment Company (AIC) has intensified the consultations with the potential investors (investment banks), which are interested in financing the projects on establishment of Oil and gas terminal Sangachal-Garadagh near Baku, Anar Akhundov, the Executive Secretary of the AIC, said.
"We allocated investments and definite work is carried out in this respect Major accent will be made to determining the investment in a short period," Akhundov said.
At the decision of the AIC Observation Board, dated 29 June, the investment company was to invest $9mln in the terminal.
Several variants are being considered for attracting foreign financing. The possibility of financing all phases of the project by all investment banks is being considered. In this case it is possible to attract approximately $100mln.Otherwide, an agreement will be achieved with the investor for financing only the first phase of the project and another banks will be attracted in the further phase.
"It is more expedient to define the investment bank or a syndicate, which is eligible to finance all phases of the project," Akhundov said.
The first phase of construction of the terminal will be complete in 12 months and its discharge capacity is 5mln tons. The project will be implemented in three stages. In the initial stage, which is to complete in 2.5 years, the capacity of the terminal will be increased to 10mln tons and in the third phase to its project capacity at 50mln tons.
The total amount of investments in the implementation of projects is some $150mln.
KavkazTransServis, part of Azersun Holding group of companies, acts as a major operator in the project. In accordance with the contract concluded between AIC and KavkazTransServis, the company purchases 25% in the statutory capital of the latter.
The Garadagh terminal is allocated for admission of limited types of products (condensate and oil), but in big volumes.
It is planned to receive crude oil from the Kashagan field trough this terminal, which will be further transported to terminals in the Black sea ports and in the Ceyhan port via the Baku-Tbilisi-Ceyhan min export oil pipeline. Oil will run from the Kashagan field no sooner than 2011 and at the same time it is possible to develop the ship-building production, order new vessels with the larger capacity which Azerbaijan needs for carrying out transportation in the region.