AIIB first loan of $600 million to be allocated to finance the TANAP

Almaty. November 18. Silkroadnews – In March 2017 the board of directors of the Asian Infrastructure Investment Bank (AIIB) plans to consider allocation of $600 million for the Trans-Anatolian Pipeline (TANAP) project, Trend reports.

The bank’s officials noted, these credit resources will be allocated with participation of CJSC “Southern Gas Corridor”.

“The total cost of TANAP project is 8.6 billion dollars. The project will be financed by the AIIB, World Bank, European Investment Bank (EIB), European Bank for Reconstruction and Development (EBRD) and others”, the bank reported.

With this the World Bank plans to allocate a total of $800 million, EBRD and EIB – $2,1 billion, and around $3 billion are expected from other financial institutions. Another $2.1 billion are expected to be allocated by the government of Azerbaijan.

TANAP project provides for transporting gas from Azerbaijani field “Shah Deniz” near the Georgian-Turkish border to the western border of Turkey. Turkey is scheduled to get gas in 2018, and then after the completion of the Trans-Adriatic Pipeline (TAP) gas will go to Europe at around the beginning of 2020.

TANAP shareholders include SOCAR (State oil company of Azerbaijan) – 58%, Botas – 30%, BP – 12%.

Azerbaijan is one of the founders of the AIIB established in June 2015. The country’s share in the banks’ capital stock amounts to 0.2851% ($ 254.1 million).