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EIB financing remains conditional upon TAP being operated in line with environmental standards

Oil&Gas Materials 17 September 2018 09:05
Any financing by the European Investment Bank (EIB) remains conditional upon the Trans Adriatic Pipeline (TAP) being built and operated in line with the EIB Environmental and Social Standards.
EIB financing remains conditional upon TAP being operated in line with environmental standards

Baku, Azerbaijan, Sept.17

By Leman Zeynalova – Trend:

Any financing by the European Investment Bank (EIB) remains conditional upon the Trans Adriatic Pipeline (TAP) being built and operated in line with the EIB Environmental and Social Standards, Trend learned from the Bank.

The EIB said that the project is strongly supported by the EU and has received the status of PCI (Project of Common Interest).

"The financing of the project is expected to be provided by TAP’s shareholders and a large consortium of banking institutions. The Board of Directors of the EIB approved the provision of 1.5 billion euros for the TAP project on February 6, 2018. Any EIB financing remains conditional upon TAP being built and operated in line with the EIB Environmental and Social Standards, as stipulated in the Environmental and Social Data Sheet published on the Bank’s website," said the Bank.

The signature of the EIB loan has not taken place yet, said the EIB.

In March 2018, the other component of the Southern Gas Corridor, which is the Trans-Anatolian Natural Gas Pipeline TANAP, that runs from the Turkish border with Georgia until the Turkish borders with Greece, got approval for $1.1 billion EIB long-term financing, said the Bank.

TAP worth 4.5 billion euros is a part of the Southern Gas Corridor, which is one of the priority energy projects for the European Union. The project envisages transportation of gas from Azerbaijan's Shah Deniz Stage 2 to the EU countries.

The pipeline will connect to the Trans Anatolian Natural Gas Pipeline (TANAP) on the Turkish-Greek border, run through Greece, Albania and the Adriatic Sea, before coming ashore in Italy’s south.

TAP will be 878 kilometers in length (Greece 550 kilometers, Albania 215 kilometers, Adriatic Sea 105 kilometers, and Italy 8 kilometers).

TAP’s shareholding is comprised of BP (20 percent), SOCAR (20 percent), Snam S.p.A. (20 percent), Fluxys (19 percent), Enagás (16 percent) and Axpo (5 percent).

The European Bank for Reconstruction and Development (EBRD) is considering allocation of 500 million euros loan for TAP project. Aside from EBRD, the European Investment Bank (EIB) will also discuss the allocation of 1.5 billion euros loan for TAP in February.

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Follow the author on Twitter: @Lyaman_Zeyn

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