IBD allowed the credit for financing of the TAPI gas pipeline

Islamic Development Bank will take part in crediting of the project of the TAPI gas pipeline. The president of Turkmenistan Gurbanguly Berdimuhamedov the day before signed the resolution, having permited National bank of foreign economic activity of the country on behalf of the government of Turkmenistan – the borrower – to sign with IDB the relevant agreements for financing of a construction of the Turkmen section of the "Turkmenistan-Afghanistan-Pakistan-India" pipeline.

It is known that the construction of the Turkmen section of the pipeline of TAPI 214 kilometers long is conducted since December, 2015 by forces of the State Concerns "Turkmengaz" and "Turkmennebitgazgurlushyk". It is planned to finish its construction until the end of 2018. At the same time the total length of the TAPI transcontinental gas highway capacity 33 billion cubic meters a year will constitute 1814 kilometers. Putting the TAPI pipeline into operation, including auxiliary land infrastructure, is planned in December, 2019.

In August the representative of the State Concern "Turkmengaz"  in the board of directors of the "TAPI Pipeline Company Limited" Mukhammetmyrat Amanov noted that to participation in the TAPI project and the third stage of development of the gas field Galkynysh is planned to invite the authoritative foreign companies and the financial organizations.

Earlier intention to participate in financing of a construction of TAPI was declared also by Asian Development Bank, the Saudi Fund of Development, the government of Japan, the French CIFAL.

During the working visit to Germany of the President Gurbanguly Berdimuhamedov on August 29-30, 2016 the State Concern "Turkmengaz" signed memorandum of understanding with the "ILF Beratende Ingenieure GmbH" and "CIFAL GROUPE Deutsehland GmbH" companies, and also with the "Siemens Aktiengesellschaft".

In June, 2016 the President Gurbanguly Berdimuhamedov signed the resolution on allocation more than 45 million US dollars for financing of the initial stage of a construction of the TAPI gas pipeline. It was the first tranche of the Turkmen government directed to a pipeline construction according to the investment agreement between the State Concern "Turkmengaz" and the "Gail (India) Limited" (India), "Inter state gas systems (Private) Limited" (Pakistan), "Afghan Gas Enterprise" (Afghanistan) and CJSC "Galkynysh" Pipeline Company which are included into consortium "TAPI Pipeline Company Limited" on a construction and operation of the gas pipeline.

Supply of the Turkmen natural gas on the TAPI pipeline will allow not only to satisfy the growing need for energy resources for India and Pakistan and Afghanistan. The importance of the TAPI project that its implementation will positively affect social and economic development not only member countries of the project, but also the whole region in general.

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