Baku, Azerbaijan, Aug.7
By Leman Zeynalova – Trend:
As with all the investments of the European Bank for Reconstruction and Development (EBRD), the Trans Anatolian Natural Gas Pipeline (TANAP) project has to satisfy a whole series of EBRD criteria in order to comply with strict EBRD standards, a source in the Bank told Trend.
“TANAP will be evaluated in respect of its environmental and social impacts. Many steps have been taken as part of the EBRD’s possible participation in the project in order to ensure adherence to these demanding social and environmental standards,” said the source.
Azerbaijan’s demonstration of efforts to adhere to revenue transparency and to remain committed to principles of good governance, revenue transparency and accountability in the extractive industry is particularly important for EBRD, according to the source.
Regarding the possibility of lending funds to Turkey’s BOTAS company, which is one of the shareholders of TANAP, the source said that EBRD is considering a loan for Azerbaijan’s Southern Gas Corridor (SGC) CJSC.
EBRD will make a decision on allocating up to $500 million loan for TANAP on October 18.
Along with EBRD, a number of other international financial institutions will support the project.
The World Bank has approved allocation of $800 million to Azerbaijan and Turkey. Of this amount, $400 million was allocated to BOTAS, while the other $400 million was provided to the Southern Gas Corridor CJSC.
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).
The European Investment Bank (EIB) is also considering financing for the TANAP project.
The final decision on EIB loans will be made by finance and economy ministers of EU countries. The EU ministers are expected to meet in Sofia, Bulgaria on September 18-19.
TANAP project envisages transportation of gas from Azerbaijan's Shah Deniz field to the western borders of Turkey. The gas will be delivered to Turkey in 2018 and after completion of the Trans Adriatic Pipeline's construction natural gas will be delivered to Europe in early 2020.
The length of TANAP is 1,850 kilometers, with an initial capacity of 16 billion cubic meters of gas. Around six billion cubic meters of this gas is meant to be delivered to Turkey, with the remaining volume to be supplied to Europe.
The project’s total cost is estimated at $8.6 billion.
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