TANAP at­tracts an ad­di­tional $1.3B fi­nanc­ing

Daily Sabah (Turkey) - - Money -

HAV­ING al­ready se­cured con­sid­er­able fi­nanc­ing from the Euro­pean Bank for Re­con­struc­tion and De­vel­op­ment (EBRD), the World Bank and Asian In­fra­struc­ture and In­vest­ment Bank (AIIB) with $2.5 bil­lion in loans, the multi­na­tional Trans-Ana­to­lian Nat­u­ral Gas Pipe­line project, which will carry gas from Azer­bai­jan to Europe, is wait­ing ap­proval from the Euro­pean In­vest­ment Bank (EIB) for a $1.3 bil­lion loan.

Sal­tuk Düzyol, gen­eral man­ager of the Trans-Ana­to­lian Nat­u­ral Gas Pipe­line (TANAP) project, said: “We are wait­ing for the Euro­pean In­vest­ment Bank’s ap­proval of an­other $1.3 bil­lion fi­nanc­ing pack­age, which will be used by the South­ern Gas Cor­ri­dor and Petro- leum Pipe­line Cor­po­ra­tion [BOTAŞ]. The EBRD’s ap­proval of a $500 mil­lion fi­nanc­ing pack­age for the TANAP will con­trib­ute to the com­ple­tion of the on­go­ing ne­go­ti­a­tion process between the EIB and our project part­ners in a shorter pe­riod of time than ex­pected.”

Düzyol said that the loans that have been ap­proved so far and are ex­pected to be ap­proved for the project will amount to $3.95 bil­lion, ad­ding that the TANAP’s bud­get has gone down to $7.9 bil­lion, ac­cord­ing to the lat­est cal­cu­la­tions. “We have saved ap­prox­i­mately $3.8 bil­lion from the pro­jected ini­tial in­vest­ment cost for the project. Ap­prox­i­mately 80 per­cent of such megapro­jects end ex­ceed­ing time and bud­get, but we have done quite well in both un­til now. It has been rarely seen that such a large amount of sav­ings is achieved in such a large-scale project.” In ad­di­tion, more than 13,000 di­rect jobs have been pro­vided dur­ing the busiest pe­riod of con­struc­tion ac­tiv­i­ties.

Düzyol fur­ther said that ap­prox­i­mately 93 per­cent of the first stage of the 1,350-kilo­me­ter line called Phase 0, which will start from the Turk­ish-Geor­gian bor­der and reach Eskişe­hir, has been com­pleted. Also, the sys­tem will start re­ceiv­ing nat­u­ral gas from the en­trance point on the Turk­ish-Geor­gian bor­der as of the be­gin­ning of next year. All un­der­ground and sur­face fa­cil­i­ties that make up the pipe­line sys­tem will be in­di­vidu- ally tested in about six months. “I hope nat­u­ral gas de­liv­ery to Tur­key will start by the end of June 2018,” Düzyol said.

Düzyol said that in­vest­ments in Phase 1, which will ex­tend from Eskişe­hir to the Greek bor­der and pro­vide nat­u­ral gas to the Trans-Adri­atic Pipe­line (TAP), is ex­pected to be com­pleted by mid2019. The line will carry nat­u­ral gas pro­duced in Azer­bai­jan’s Shah Deniz-2 field in the Caspian Sea to Tur­key and Europe via the Turk­ish ter­ri­tory.

Em­pha­siz­ing that the project could be com­pleted in the first quar­ter of 2020 due to some po­lit­i­cal and ad­min­is­tra­tive prob­lems, Düzyol said that the nat­u­ral gas flow to Europe could also start in March 2020, at the ear­li­est.

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