The Asian Infrastructure Investment Bank (AIIB) has approved a loan of US$600 million for the construction of the Trans Anatolian natural gas pipeline (TANAP). Its loan, which is the largest ever loan to be approved by the AIIB, has been granted to Azerbaijan’s Southern Gas Corridor (SGC) company to build the 1850 km pipeline.
AIIB is co-financing the project alongside a number of development banks, including the World Bank Group, which has also announced financing recently. The World Bank has approved a US$400 million loan to Azerbaijan and a US$400 million loan to Turkey for the TANAP construction.
This latest approval brings the total amount lent by AIIB to approximately US$1.7 million, focusing on nine infrastructure projects across seven countries.
Vice President and Chief Investment Officer, DJ Pandian, welcomed the latest project, stating: “The approval of TANAP, which involves a number of other multilateral and private sector players, demonstrates the Bank’s capacity to assess and provide loans in even the most complex of cases. This crucial upgrade of energy infrastructure between Asia and Europe will further strengthen the economy of Azerbaijan while underpinning energy security in Turkey, as well as several countries in southern Europe.”
The 1850 km TANAP is expected to be operational in 2018. Once complete, the pipeline will transport natural gas from Azerbaijan to Turkey, before transported further to markets in Europe (including Greece, Albania and Italy). The aim of the project is to integrate Azerbaijan with new markets and enhance energy security in Europe.
Read the article online at: https://www.worldpipelines.com/project-news/22122016/aiib-approves-us600-million-tanap-loan/