EBRD ready to finance Nabucco
Azerbaijan, Baku, Nov. 16 /Trend, A.Badalova/
The European Bank for Reconstruction and Development (EBRD) stated about its readiness to finance the Nabucco gas pipeline project, the Anadolu agency reported referring to EBRD President Thomas Mirow.
Speaking at the meeting with Turkish Energy and Natural Resources Minister Taner Yildiz, Mr.Mirow said the EBRD will finance the project in case of its launch.
Nabucco gas pipeline project is designed to transport gas from the Caspian region and Middle East to Europe.
The project is planned to start construction in 2013 and the first supplies will be commissioned in 2017. The total length of the pipeline is 3900 kilometres with a maximum capacity of 31 billion cubic metres per year. The project's partners include the Austrian OMV, Hungarian MOL, Bulgarian Bulgargaz, Romanian Transgaz, Turkish Botas and the German RWE.
The EBRD, the European Investment Bank (EIB), IFC - a member of the World Bank Group, the shareholders of Nabucco, and Nabucco Gas Pipeline International GmbH signed a mandate letter in September 2010. The signing marked the start of the appraisal process for the Nabucco project, a step required for a potential financing package of up to EUR 4 billion.
The potential financing package will consist of up to EUR 2 billion from the EIB, up to EUR 1.2 billion from the EBRD (up to EUR 600 million for EBRD's account and up to EUR 600 million to be syndicated to commercial banks) and up to around EUR 800 million from IFC (up to EUR 400 million for IFC's account and up to EUR 400 million to be syndicated to commercial banks).
According to EBRD Press Advisor Sergey Gritsenko the bank believes that the Nabucco project could play a significant role in ensuring energy security in Europe and also supporting key economies in the EBRD region .
Also, Mr.Mirow said that EBRD invested 1 billion euro in Turkey in 2011, and plans to invest the same amount in 2012in the country.