The Board of Directors of the Asian Development Bank (ADB) will discuss allocation of a loan for the Southern Gas Corridor project until late 2016, ADB Vice President Wencai Zhang said.
Zhang, who is responsible for operations in the ADB South Asia Department and the Central and West Asia Department, made the remarks Nov. 15 at a press conference in Baku.
He said that the total volume of funding will amount to $1 billion.
The proposed investment plan will support the Azerbaijani government’s efforts to finance Shah Deniz-2 project, and is aimed at improving the country’s fiscal position by increasing revenues from natural gas exports from the expanded Shah Deniz field and creating additional jobs.
The plan will provide a partial credit guarantee (PCG) to support commercial bank financing of government shares in the amount of 16.67 percent of the project’s cost.
If the loan is allocated, it will be used by Southern Gas Corridor CJSC.
The gas to be produced as part of the Stage 2 of the Shah Deniz field’s development will be exported to Turkey and to the European markets by means of expanding the South Caucasus Pipeline and construction of the Trans-Anatolian Gas Pipeline (TANAP) and the Trans-Adriatic Pipeline (TAP).
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