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First tranche of EIB loan for IGB utilized

Oil&Gas Materials 26 August 2020 14:30 (UTC +04:00)
First tranche of EIB loan for IGB utilized

BAKU, Azerbaijan, Aug.26

By Leman Zeynalova – Trend:

The project company ICGB which is responsible for the implementation of the Greece-Bulgaria gas interconnector, has successfully utilized the first tranche of the loan financing from the European Investment Bank (EIB), Trend reports citing the company.

The total value of EIB financing for the purposes of the project amounts to EUR 110 million, which is secured by a guarantee from the Bulgarian state.

The EIB loan agreement was signed with BEH in 2019, so the financing of the IGB project is fully secured. The total value of the interconnector that will connect the gas transmission networks of Bulgaria and Greece, is nearly EUR 240 million, provided from shareholders' capital, a loan from the EIB of EUR 110 million with a state guarantee and grants of EUR 39 million under the Operational Program "Innovation and Competitiveness 2014-2020". For the purposes of the project, EUR 45 million have been provided from the European Energy Program for Recovery.

A number of preconditions have been set for the receipt of the first tranche of the EIB loan, including the introduction of an Environmental and Social Management Framework. As part of the EIB's preconditions, an environmental and social monitoring consultant has been selected to audit the implementation of the environmental and social measures set out in the developed environmental and social framework and to report to the European Investment Bank.

IGB project envisages the construction of a gas interconnector that will link the gas transmission systems of Greece and Bulgaria. The total length of the gas pipeline is 182.6 km, and its capacity for gas transmission is 3 billion cubic meters per year with the option to reach 5 billion cubic meters.

The route of the gas pipeline is divided into 7 main lots, the shortest being 9.55 km long and the longest - 71.90 km. 106 km of the route in Bulgaria will be completed with automatic welding, and the remaining 45 km - by manual welding.

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