BAKU, Azerbaijan, Dec.23
By Leman Zeynalova - Trend:
ICGB AD, a project company for construction of Interconnector Greece-Bulgaria (IGB) has filed all required documentation for the European Investment Bank (EIB) second financial tranche, which is expected to be approved in January 2021, ICGB AD told Trend.
The project company said it has just received approval for the first interim payment of the grant financing under the European Energy Program from Recovery (EEPR).
“Current estimates indicate that the IGB project will be finalized within the approved budget,” said ICGB AD.
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. 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.
IGB will provide the shortest and the most competitive route along the Southern Gas Corridor for bringing natural gas to Bulgaria.
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