The Asian Infrastructure Investment Bank (AIIB) on Wednesday approved approximately $600 million in loans for the Trans-Anatolian Natural Gas Pipeline Project (TANAP).
The fund will be used by Azerbaijan's Southern Gas Corridor (SGC) Company in the construction of the project. According to a statement, the loan and conditions were discussed at the bank's Executive Board meeting on Wednesday, where the board agreed to provide some $600 million in loans to SGC for the construction work of the TANAP project. The loan will be provided to the SGC under Azerbaijan's guarantee.
D.J. Pandian, vice chairman of the AIIB, said in the statement, the loan provided to TANAP shows the bank's capacity. He stressed that this important energy infrastructure between Asia and Europe will not only strengthen the economy of Azerbaijan, but will also ensure the energy security of Turkey and many other countries in southern Europe.
Meanwhile, the World Bank on Wednesday also approved a total of $800 million in loans for the TANAP project, including some $400 million to Turkey's Petroleum Pipeline Corporation (BOTAŞ) and $400 million to Azerbaijan's Southern Gas Corridor (SGC) Company. Around $4 billion in external financing is anticipated for the TANAP project with additional support from the Multilateral Investment Guarantee Agency, Asian Infrastructure and Investment Bank, European Investment Bank and European Bank for Reconstruction and Development as well as the World Bank. The total cost of the project is estimated around $10 to $12 billion, as previously announced by the Azeri energy giant State Oil Company of Azerbaijan (SOCAR). SOCAR has a 58 percent share in TANAP, followed by Turkey's BOTAŞ with 30 percent and British Petroleum with 12 percent.