The European Bank for Reconstruction and Development (EBRD) is tying its planned $1bn Southern Gas Corridor (SGC) funding to better transparency in Azerbaijan’s oil and gas sectors.
This was the thrust of an interview with EBRD energy and natural resources boss Riccardo Puliti, published by Turkey’s state news agency Anatolia.
Puliti told Anatolia that the EBRD’s decision on funding for the TransAnatolian and TransAdriatic pipelines (Tanap and TAP) will depend on Azerbaijan making progress in its ongoing talks with the Extractive Industries Transparency Initiative (EITI), an international initiative backed by governments, corporations and international financial institutions which sets standards of transparency aimed at promoting “open, and accountable management of natural resources” and for which Azerbaijan has candidate status.
Puliti said that progress by Baku in these talks was important for both lines, but more so for Tanap as Azeri state oil company Socar holds 58% of the project’s equity.
“In the case of Tanap, it is important that this progress takes place. If there is no progress it will be quite difficult to justify a large amount of financing,” he said.
Puliti explained that EITI will meet in the capital of Kazakhstan, Astana, October 26 and publish its findings on Azerbaijan’s progress in improving transparency, anti-corruption measures, openness in tenders and consultations with civil society.
David O’Byrne
For more on this story, please see the forthcoming issue ofNGW, published October 5.
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