ADB to allocate over $1.5B for Azerbaijan’s largest gas project
Baku, Azerbaijan, May 6
By Maksim Tsurkov - Trend:
The Asian Development Bank (ADB) will consider the possibility to allocate loan worth $1.505 billion for the second phase of the Azerbaijani Shah Deniz gas and condensate field's development, ADB message said May 6.
The investment plan of the Shah Deniz-2 project's multitranche financing is at the proposal stage, said the message.
"The proposed investment plan will support the Azerbaijani government's efforts to finance Shah Deniz-2 project, and is aimed at improving the country's fiscal position by increasing revenues from natural gas exports from the expanded Shah Deniz field and creating additional jobs," said the message.
The plan will provide a partial credit guarantee (PCG) to support commercial bank financing of government shares in the amount of 16.67 percent of the project's cost.
"ADB mission will visit Azerbaijan from June 15 to June 24 for collecting facts on the project," said the message. "The investment plan's consideration will be held July 4 by the bank's management, and it is expected to be approved August 22 by ADB Board of Directors."
If the loan is allocated, it will be used by Southern Gas Corridor CJSC.
The gas to be produced as part of the Stage 2 of the Shah Deniz field's development will be exported to Turkey and to the European markets by means of expanding the South Caucasus Pipeline and construction of the Trans-Anatolian Gas Pipeline (TANAP) and the Trans-Adriatic Pipeline (TAP).
Edited by SI
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