World Bank allocates 400 mln USD to BOTAŞ for TANAP

Baku. 8 February. REPORT.AZ/ The World Bank and BOTAŞ company, 30% shareholder of the Trans-Anatolian Pipeline (TANAP) project to transport Azerbaijani gas to Turkey and then to Europe, have today signed a loan agreement with cost of 400 mln USD.

Report informs citing the Turkish media, the document was signed by World Bank Vice President for Europe and Central Asia Cyril Muller and BOTAŞ Director General Burhan Özcan.

Turkish Minister of Energy and Natural Resources Berat Albayrak attended the signing ceremony. The minister said that pumping of the first natural gas through TANAP will start next year.

According to him, process of reaching an agreement with other Turkish international financial institutions to get a total of 3 bln USD loan will be completed this year.

Notably, in January, the Azerbaijani government and World Bank have signed an agreement on loan allocation for TANAP project. The document was signed by Regional Director for the South Caucasus Mercy Tembon on behalf of the World Bank and Director General of the "Southern Gas Corridor" (SGC) CJSC Afgan Isayev (beneficiary) and Finance Minister Samir Sharifov (guarantor) on behalf of Azerbaijani side.

According to the decision of the World Bank Board of Directors declared on December 20, a total of 800 mln USD loan allocated for TANAP. 400 mln USD part of the loan is provided to "SGC" CJSC (Southern Gas Corridor) under guaranty of Azerbaijani government, another 400 mln USD to BOTAŞ under guaranty of Turkish government.

The loan was provided to the Azerbaijani company for 30 years and to Turkish BOTAŞ company for 29 years. First 5 years were determined as a grace period for both sides.