Top

Afgan Isayev: So far Azerbaijan invested $ 8.6 bln in SGC project - INTERVIEW

Afgan Isayev: So far Azerbaijan invested $ 8.6 bln in SGC project - INTERVIEW
'Talks are underway on guarantee allocated by MIGA for TANAP'
© Report/ Orkhan Azim

Baku. 17 January. REPORT.AZ/ "Southern Gas Corridor" CJSC was established under the order of Azerbaijani President "On some measures regarding the second stage of Shah Deniz gas and condensate field development and other projects on establishment of the Southern Gas Corridor", dated February 25, 2014 year. 51% of state-owned shares of the CJSC belongs to the Ministry of Economy, 49% to SOCAR. "Southern Gas Corridor" CJSC is a company representing Azerbaijan's interests in the Southern Gas Corridor international gas project, which is currently under construction for the delivery of natural gas from Azerbaijan to Europe with length of more than 3,500 km and supported by the European Union.

Report News Agency presents an interview with Afgan Isayev, Director General of "Southern Gas Corridor" CJSC:

- What amount of funds have been spent on financing share of Azerbaijan in the Southern Gas Corridor project so far? How many percent of financial obligations has Azerbaijan fulfilled for the Southern Gas Corridor? What part of used funds accounts for last year?

- The Southern Gas Corridor (SGC) CJSC has fulfilled $ 8.6 bln of about totally required $ 11.5 bln so far until 2020 (including) on the Southern Gas Corridor project (including existing "Shah Deniz-1" and South Caucasus Pipeline projects). Until now, it has fulfilled 75% of its financial commitments on the participation shares in the SGC projects. The Southern Gas Corridor was invested $ 2.3 bln investment in 2017.

- What are performance indicators for the projects included in the Southern Gas Corridor?

- Within the framework of the project, 98.8% of the works have been carried out to develop the second stage of the "Shah Deniz" gas condensate field exploitation (on production of the first gas) and 100% of the works to transport the first gas on South Caucasus Pipeline Expansion (SCPX). 89.6% of works on TANAP construction, 62.6% on Trans-Adriatic Pipeline (TAP) construction has been completed.

- From which sources were funds attracted to finance share of Azerbaijan?

- SGC has attracted funds from the following sources to finance participation shares in projects until January 16, 2018:

1. Through the bonds in the amount totaling $ 2.5 bln issued by the SGC and acquired by the State Oil Fund of the Republic of Azerbaijan (SOFAZ);

2. Through the authorized capital in the amount of $ 2.4 bln provided by the Ministry of Economy and State Oil Company of Azerbaijan Republic (SOCAR);

3. Through issue of Eurobonds at par value $ 1 bln in March 2016 (the first issue) and issue of Eurobonds at par value $ 1 bln in March 2017 (reissue);

4. Through debts directly attracted from the International Bank for Reconstruction and Development (IBRD) and Asian Infrastructure Investment Bank (AIIB) in the amount of $ 0.4 bln and $ 0.6 bln respectively;

5. Through the debt attracted from the European Bank for Reconstruction and Development (EBRD) in the amount of $ 500 mln;

6. Through the debt directly attracted from the Asian Development Bank (ADB) in the amount of $ 500 mln;

7. Through the debt attracted from the Asian Development Bank (ADB) on the syndicated loan in the amount of $ 524.5 mln under guarantee.

- With which financial institutions are discussions underway at present and what amount of funds is intended to be attracted?

- As you know, in December 2016, Board of Directors of the Multilateral Investment Guarantee Agency (MIGA) included in the World Bank Group has approved guarantee to the "Southern Gas Corridor" CJSC for the loan in amount of $ 750 mln on the investments allocated to TANAP project. Talks with commercial banks underway on the guarantee allocated by MIGA.

- Is Eurobond emission planned again?

- The mentioned talks are continuing successfully and intended results are expected to be achieved. Organization of Eurobond reissue is not currently planned. 

If you find out orphographic mistake in the text, please select mistaken part of the text and press Ctrl + Enter.

Last added

Latest news



Orphus sistemi