EBRD may allocate €1.5 billion to TAP

/By Azernews/

By Fatma Babayeva

Trans Adriatic gas pipeline attracts more financing from international finance institutions.

The European Bank for Reconstruction and Development considers allocating up to €1.5 billion for the Trans Adriatic Pipeline (TAP) in a record loan.

The statement was made by the bank's managing director on energy, Riccardo Puliti, to Reuters on May 12.

EBRD is considering the possibility of issuing up to €500 million from own funds to the TAP project, Pulity said, adding that the bank will try to arrange with other banks up to €1 billion in a syndicated loan.

The loan in total would be the largest the EBRD has ever made.

"Together with financing from the EIB (European Investment Bank), project sponsors' equity and export credit agencies, I think it [the project] will be fully financed," he added.

Earlier, EIB reported that it was considering lending €2 billion to the TAP project.

The official representative of EIB, Massimo D'Eufemia, said that the bank closely worked with TAP and TANAP (Trans Anatolian gas pipeline) last year.

EIB also wants to assure that long-term funds and resources will be allocated by EIB for the successful completion of these projects, and the bank is also considering financing the other components of the Southern Gas Corridor, D’Eufmia said.

TAP is a part of Southern Gas Corridor which envisages transportation of natural gas from the second phase development of Shah Deniz gas and condensate field in Azerbaijan to Europe.

TAP pipeline which will stretch across 870-kilometer will be connected to the Trans Anatolian Pipeline (TANAP) on the Turkish-Greek border and run through Greece, Albania, the Adriatic Sea and the southern part of the Italy.

Its initial capacity will be 10 billion cubic meters of natural gas per year, expandable to 20 billion cubic meters.

The groundbreaking ceremony of TAP pipeline will be held in Greece on May 17, 2016.

The realization of this pipeline project will increase energy security of the EU and contribute to its policy to diversify the routes of energy imports.

Furthermore, the construction of the pipeline will bring the Caspian region closer to Europe and strengthen ties between them.