The Asian Development Bank (ADB) will charge a 'success fee' of US$ 30 million, besides a retainer fee of US$ 50 000 per month, for helping build the US$ 7.6 billion Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project.
ADB was appointed 'Transaction Advisor' by the four nations to the pipeline project in December last year. Its main task towards 1735 km TAPI is helping set up an international consortium, including a leader with experience of constructing and operating transnational pipelines.
For this, ADB had initially demanded 1% of the cost as a 'success fee' upon a pipeline consortium being set up.
The four nations, which are to bear these expenses, opposed it and brought the fee down to US$ 30 million (Rs 180 crore).
Sources said while several financial institutions have expressed interest in financing the project, no pipeline company has so far come forward to take up the project.
ADB will help the four nations put up a credible consortium that would build and operate the line passing through volatile Afghanistan and Pakistan territories.
Edited from various sources by Elizabeth Corner
Read the article online at: https://www.worldpipelines.com/business-news/16072014/adb_will_charge_success_fee_tapi_pipeline/