(MENAFN- AzerNews) By Sara Israfilbayova
The European Bank for Reconstruction and Development (EBRD) has concluded the final review of the project for allocating $500 million loan for construction of the Trans Anatolian Pipeline (TANAP).
The Bank reported that now the project awaits board approval on October 18.
The funds will be allocated to Azerbaijan's Southern Gas Corridor Closed Joint Stock Company (borrower).
The loan will be used to finance a portion of the borrower's commitments to TANAP.
TANAP project envisages transportation of gas from Azerbaijan's Shah Deniz field to the western borders of Turkey. The gas will be delivered to Turkey in 2018 and after completion of the Trans Adriatic Pipeline's construction the gas will be delivered to Europe in early 2020.
The length of TANAP is 1,850 kilometers with an initial capacity of 16 billion cubic meters of gas. Around six billion cubic meters of this gas is meant to be delivered to Turkey, with the remaining volume to be supplied to Europe.
The project's total cost is estimated at $8.6 billion.
Along with the EBRD, a number of other international financial institutions will support the project.
The World Bank has committed $800 million financing for TANAP and the Asian Infrastructure Investment Bank has committed $600 million. The European Investment Bank is also considering financing for the TANAP project.
The Southern Gas Corridor Closed Joint Stock Company is owned 51 percent by the Republic of Azerbaijan and 49 percent by the State Oil Company of Azerbaijan. The Borrower, a 58 percent shareholder in TANAP A.S., manages Azerbaijan's interest in the Trans-Anatolian Natural Gas Pipeline project.
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