EBRD could decide on TANAP financing in coming months

By  Trend

The European Bank for Reconstruction and Development (EBRD) is expected to make a decision on approval of loan allocation for the Trans Anatolian Natural Gas Pipeline (TANAP) project in coming months, a source in EBRD told Trend.

EBRD is expected to approve $500 million loan for the project.

"All EBRD projects have to meet a whole series of important criteria. In the case of TANAP, these also include reviews of environmental and social standards and other condition, including assessments: resettlement, health and safety, biodiversity, habitat," said the source.

In Azerbaijan, EBRD focuses on supporting local corporates with direct financing, while helping partner banks in on-lending to MSMEs (micro, small and medium enterprises); supporting partner banks in the development of new financial instruments to target improved access to finance for women-owned and -run businesses; promoting competition and improving the business environment to deepen reforms; pursuing investments in energy projects that improve efficiency and energy security, added the source.

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.

TANAP shareholders are Azerbaijan's state oil company SOCAR (58 percent), BOTAS (30 percent) and BP (12 percent).