Milestones achieved in Interconnector Greece-Bulgaria project in 2019

Milestones achieved in Interconnector Greece-Bulgaria project in 2019

BAKU, Azerbaijan, Dec. 23

By Leman Zeynalova – Trend:

Executive director of ICGB AD, the company, engaged in the implementation of the Interconnector Greece-Bulgaria (IGB) from Bulgaria Teodora Georgieva has outlined for Trend the key events in the project’s implementation in 2019.

On 7th February 2019 IGB obtained an installation permit on the territory of the Hellenic Republic, which combined with the issuance of the ASFA license grants the project the right to start construction activities on the Greek territory;

In March 2019 ICGB successfully completed the procedure for selection of an owner's engineer for the gas interconnector Greece-Bulgaria

On 24th April 2019ICGB selected a contractor in the procedure for construction oversight for the construction of the gas interconnector Greece-Bulgaria on Bulgarian territory;

In May 2019 ICGB completed the public procurement for line pipe manufacturing and supply for construction of IGB gas pipeline;

On 14th May 2019, ICGB completed the procedure for awarding engineering, procurement and construction of the interconnector with Greece;

On 22nd May 2019 the groundbreaking ceremony for the IGB project took place in the presence of the Prime minister of the Republic of Bulgaria and the Prime minister of the Hellenic Republic;

On 15th of June a notice to proceed to the Owner Engineering was issued.

On 18th July 2019 the project obtained a license for an independent operator of a gas transmission network which also allows construction to start on Greek territory

At the beginning of October 2019, the National Regulatory Authorities of Greece and Bulgaria adopted a joint decision for approval of a Network code and a Tariff code of ICGB by which the project company comes closer to completing the procedure for certification as an independent gas transmission operator

On 10th October 2019 during the official ceremony in the presence of the ministers of energy of the Republic of Bulgaria and the Hellenic Republic the following significant document were signed:

A long term loan financing agreement between Bulgarian Energy Holding (BEH) and European Investment Bank (EIB) in the amount of approx. EUR 110 mln and respectively an onlending agreement between ICGB and BEH in the same amount. The Long term loan financing by EIB is secured by a state guarantee from Republic of Bulgaria. The financing will be disbursed to the Project company via an onledning agreement between Bulgarian Energy Holding (BEH) and ICGB.

Binding Gas Transportation Agreements were concluded with the main shippers who have reserved capacity through ICGB.

The contracts with the selected Line Pipe and EPC were concluded and notices to proceed were issued.

An Intergovernmental agreement between Bulgaria and Greece (IGA) focused on the stabilization of the tax regime applicable for the project during commercial operation and the adoption of the mechanism for the allocation of revenues between both territories. The IGA was signed by the Ministry of Energy of Bulgaria and the Ministry of Energy of Greece.
Further in order to secure the construction process, the following additional agreements were signed by the Shareholders, during the official ceremony:

Amended Shareholder’ agreement to ensure the management and operation of the Project Company during construction, whereby the final business plan of the IGB project was adopted as well as the final budget for construction of the gas interconnector

A Shareholders’ decision for the increase of the capital of the company by EUR 42.4 million.

In terms of figures the following main contracts securing the construction process were concluded in 2019:

Engineering procurement and construction – in the total amount of EUR 144 850 000 with AVAX S.A

Line pipes manufacture and supply in the amount of EUR 58 229 760 with Corinth Pipeworks S.A

Owner’s engineer for Interconnector Greece Bulgaria in the amount of EUR 5 670 000 with Consortium Tibey

Contract for Archaeological studies on the Bulgarian site of pipeline, the contract was concluded in 2018 but additional activities were contracted in 2019 – the approximate amount of works is around EUR 2 000 000.
Construction supervision for the Bulgarian section of the pipeline in the amount of EUR 388 582
Designer supervision for the for the Bulgarian section of the pipeline in the amount of EUR 76 694;

The capital of the Project company was increased on November 1st, 2019 in the amount of EUR 42.4 mln. The money is partially used for covering the advance payments to the EPC and Line pipe and ongoing payments to the Owner Engineering in the total amount of EUR 23 443 938.

Besides the capital injection provided by the shareholders, the financing of the project will be secured by the following sources:

EUR 39 mln to be granted to the project from the European Structural Fund Financing (ESIF) allocated to Bulgaria under the Operational Program Innovation and Competitiveness 2014 – 2020
EUR 45 mln, European Energy Recovery Program (EEPR) grant financing approved for the implementation of the project.
EUR 110 mln long-term loan financing provided EIB, to be disbursed to the Project company via the onledning agreement between Bulgarian Energy Holding (BEH) and ICGB.

The envisaged financing is sufficient for the completion of the construction of the pipeline. Any potential short-term liquidity needs due to delays in the reimbursement of the grant financing shall be covered by a short-term bridge financing.

IGB is a gas pipeline, which will allow Bulgaria to receive Azerbaijani gas, in particular, the gas produced from Azerbaijan's Shah Deniz 2 gas and condensate field. IGB is expected to be connected to TAP via which gas from the Shah Deniz field will be delivered to the European markets.

The Interconnector Greece-Bulgaria project envisages a two-stage development.

In the first stage, the pipeline capacity will be 3 billion cubic meters of gas, of which 2.7 billion cubic meters will be offered for the long-term market, the remaining share of 0.3 billion cubic meters in the short term.

In a second phase, also depending on the evolution of the market, the capacity of the pipeline can be increased to 5.3 billion cubic meters of gas thanks to the addition of a compression station: 4.5 billion cubic meters of gas 0.5 billion cubic meters of short-term gas will be offered for long-term products.

---

Follow the author on Twitter:@Lyaman_Zeyn

Georgian Adjara creating new platform for tourism development
Georgian Adjara creating new platform for tourism development
Azerbaijan eyes to launch WeChat payment solution
Azerbaijan eyes to launch WeChat payment solution
Uzbekistan, Ireland consider establishing co-op in tourism sector
Uzbekistan, Ireland consider establishing co-op in tourism sector
Loading Bars
Latest
SOCAR to supply Rosneft’s oil products to Baltic states, Ukraine, Poland
Google leads U.S. business push to preserve work permits for H-1B spouses
Production of electric cars in Iran needs more motivation - ministry official
Azerbaijan, US exchange views on Armenian-Azerbaijani border situation
Azerbaijan shares data on number of vaccinated citizens for May 14
Georgia negotiating with South African, Polish companies to manufacture military UAVs
Second batch of Sputnik V vaccine expected to be delivered to India by end of the week
London May cocoa expiry sees 72,230 tonnes tendered
Azerbaijan confirms 326 more COVID-19 cases, 1,262 recoveries
Azerbaijan names date of issuing tickets for UEFA EURO 2020 matches in Baku
Afghan president calls Azerbaijani president
Wizz Air joins airlines cancelling Tel Aviv flights
Georgia receives financing from WB toward cost of energy supply reliability
More Azerbaijani enterprises to export tomatoes to Russia
'Lancet report on India COVID-19 response another attempt to undermine developing country's ability to challenge big pharma's monopoly'
Kazakh telecommunications company opens tender to buy station for wells management
Russia reports 9,462 daily COVID-19 cases
Azerbaijani MoD names number of commissioned military units in liberated areas (PHOTO)
Total assets of INPEX rise in Q1 2021
INPEX sees decrease in net natural gas sales
INPEX Corporation increases net sales of crude oil
Turkish company Chalik Holding to build new wind farm in Georgia
No oil deliveries planned from Azerbaijan to Belarus in May
Revenues of Azerbaijan State Maritime Agency decrease
Kazakhstan's ERG eyeing more investments into future projects
Kazakhstan sees decrease in trade with Netherlands
Kazakhstan, France discuss fuel energy cooperation prospects
Georgia reports 1,390 new cases of coronavirus for May 14
France's Macron to go down in history as killer of OSCE Minsk Group
Airbnb bookings jump 52% as vaccinations spur vacation rental demand
SOCAR ready to share capacity of Southern Gas Corridor with Turkmenistan
Kazakhstan decreases exports to Hungary
Azerbaijani oil prices decline
Russian IrAero to launch flights to Azerbaijan soon
Zulfiya Khanbabayeva to be the next narrator of Nar's ‘Reading hour’ project (PHOTO)
Apple supplier Foxconn reports Q1 profit T$28.2 bln, beats estimates
Kazakh gas supply company opens tender for pipeline maintenance
Georgia reveals rating of its largest wine and spirits companies
Georgian Geofresh company eyes Europe, Dubai to expand exports
Georgian Adjara creating new platform for tourism development
Turkey discloses number of ships received by Tuzla port
Turkish ministry discloses volume of cargo handled through Bartin port
Sweden, WB supporting Georgia by addressing wastewater treatment challenges
IMF underlines successfully completed four-year extended program in Georgia
Georgia considers opening of land borders
UN Secretary General calls for immediate cessation of hostilities in Gaza Strip and Israel
Kazakhstan requires sustainable management practices for natural resources - UNIDO
Iran’s FM meets with Spanish counterpart
Kazakhstan reports 2,549 more COVID-19 cases, total at 353,140
Turkey reports 11,534 new COVID-19 cases, 5,083,996 in total
6.0-magnitude quake strikes off Japan's Fukushima Prefecture, no tsunami warning issued
Colonial Pipeline restarts entire pipeline system - company statement
Hamas launches 100 more missiles in direction of Ashkelon
More than 745,000 COVID-19 infections detected worldwide over past 24 hours - WHO
UN Security Council to hold open session on Israel and Gaza Strip on May 16
Oil prices drop as U.S. pipeline resumes operations
Latvia eases entry rules for vaccinated travelers
Three rockets launched toward Israel from Lebanon, no damage -Israeli military
Africa's COVID-19 cases surpass 4.66 mln
Over 500 residential buildings razed by Israeli airstrikes in Gaza Strip
Azerbaijani Foreign Ministry issues statement on tension on Armenian-Azerbaijani border
China's Qinghai donates anti-pandemic supplies to Kyrgyzstan
Azerbaijani FM talks tension on Azerbaijani-Armenian border with OSCE Chairman-in-Office
Georgian's commercial banks see increase in number of total loans
Azerbaijani, Russian FMs exchange views on tensions on Azerbaijani-Armenian border
Overseas election headquarters established at Iran’s foreign ministry
Sputnik V approved for use in Republic of Maldives
Azerbaijan shares data on number of vaccinated citizens for May 13
Azerbaijan confirms 509 more COVID-19 cases, 1,427 recoveries
COVID-19 cases decrease in 80 Turkish provinces in a week
Tajikistan delegation to visit Uzbekistan on May 14
Gaza death toll jumps to 84 as Israeli air raids intensify
Musk decries bitcoin's 'insane' energy use after Tesla payment U-turn
Azerbaijani president got touched by National leader Heydar Aliyev's words about Shusha (VIDEO)
Azerbaijani president once again says at Jidir Plain in Shusha - Karabakh is Azerbaijan! (VIDEO)
EU countries urged to halt non-essential travel from India
U.S. weekly jobless claims fall
Gaza flare-up further weakens shekel
Georgia increases aviation fuel imports
Iran ready to have closer ties with Saudi Arabia, FM says
Azerbaijan’s import of goods from Italy down
Iran talks insurance data in its mining sector
Turkish ministry discloses volume of cargo handled through Mersin port
Georgia adopts new rule on forest use
Kazakh Senate adopts document on economic relations with Kyrgyzstan, within EAEU
Volume of chemical products exported by Turkey to Azerbaijan disclosed
KazTransOil completes connecting newly constructed sections to Uzen-Atyrau-Samara pipeline
Trade ministry discloses volume of cereals imported by Kazakhstan from Turkey
Russian Bright Way Group to set up pharmaceutical plant in North Kazakhstan
Georgia sees decrease in amount of local small companies
Turkmenistan's Turkmennebit opens tender to purchase of chemical products
Kazakhstan's exports to Latvia decrease
Kazakhstan boosts agriculture goods output
A year ago, different music was played in Shusha, other actions were taking place here - President Aliyev
President Ilham Aliyev meets with journalists in Shusha
Georgia establishes its first avocado farm
Tender for park construction opens in Turkmenistan's Dashoguz region
Trade ministry discloses volume of cereals imported by Georgia from Turkey
Turkey’s export of steel to US soars
UNIDO talks current global projects in Kazakhstan
All news