ADB remains committed to promoting the TAPI project today, - ADB Director for Turkmenistan

Diversification of energy markets is an important pillar of the current Asian Development Bank partnership strategy with Turkmenistan. This was stated in an interview with the newspaper Neutral Turkmenistan by the new ADB director for Turkmenistan, Mr. Si. Si. Yu, appointed to this position in August 2019.

Si.Si.Yu stressed: "the Turkmenistan–Afghanistan–Pakistan–India (TAPI) gas pipeline project remains among the flagship regional efforts. This energy corridor, once put into operation, will raise the bar of regional cooperation to a new height, contributing to stability and prosperity in Central and South Asia."

ADB Director for Turkmenistan recalled that the history of the Bank's participation in the project dates back to 2001. ADB provided a technical assistance grant to carry out preliminary project evaluations, develop, negotiate and sign pipeline framework agreements between the parties concerned. At the same time, ADB organized meetings of the technical working group and served as the Secretariat of the TAPI Steering Committee. In 2013-2016. The Bank acted as a transactional Advisor to the national gas companies of the TAPI member States and in this capacity helped them with the registration of the TAPI Pipeline Company Limited in November 2014 and the signing of a shareholder agreement between them in December 2015 and an investment agreement in April 2016.

-ADB remains committed today to advancing this important regional initiative, -said Si. Si. Yu. - the Bank's Participation in the TAPI project will facilitate its proper planning, structuring and financing in compliance with strict environmental and social standards, as well as international rules governing the management and procurement aspects of the project.

In particular, the ADB Director for Turkmenistan noted that the Bank's assistance in such matters as mitigation of risks associated with the project and the distribution of these risks in a balanced and sustainable manner will make the pipeline more acceptable for financing and thus increase its attractiveness in the eyes of potential investors and creditors.

Si.Si.Yu also noted that " transport (Railways) and energy (gas and power lines) projects forming key corridors, including CAREC transport corridors, TAPI gas pipeline, Turkmenistan–Uzbekistan–Tajikistan–Afghanistan–Pakistan and Turkmenistan–Afghanistan–Pakistan power lines, represent priority areas of possible application of ADB financial resources. They would allow Turkmenistan to export its goods and services and gain foreign currency, which is important, since the country's external borrowing for the purposes of projects is also expressed in foreign currency."

 

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