Guaranteed external financing for TANAP can reach $3.7B
Baku, Azerbaijan, Feb.15
By Leman Zeynalova – Trend:
External financing worth $2.15 billion has already been guaranteed for the Trans-Anatolian natural Gas Pipeline (TANAP) and this amount can reach $3.7 billion, Anadolu Agency reported.
The total cost of the project is $8.5 billion.
Anadolu has learned from international financial institutions that three separate financing projects for TANAP have been approved.
The World Bank has approved allocation of $800 million to Azerbaijan and Turkey. Of this amount, $400 million was allocated to Turkey's Pipeline and Petroleum Transportation Company (BOTAS), which is one of the project’s partners, while the other $400 million was provided to the South Gas Corridor Inc. (SGC), the largest shareholder of this project.
Additionally, the Asian Infrastructure Investment Bank (AIIB) has approved allocation of $600 million for the SGC.
A guarantee of allocation of $750 million for SGC has been provided by the Multilateral Investment Guarantee Agency (MIGA). Thus, the total amount of foreign financing secured for TANAP has reached $2.15 billion.
Around 1 billion euros from the EIB will be provided to BOTAS under the guarantee of the Undersecretariat of the Treasury.
At the same time, EBRD is expected to approve $500 million loan for the Southern Gas Corridor project.
After the approval of loan allocation by EIB and EBRD, TANAP will get additional $1.5 billion of financing and thus, the total amount of loans provided for TANAP will reach $3.7 billion.
TANAP project envisages transportation of gas from Azerbaijan’s Shah Deniz field to the western borders of Turkey.
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