Earlier, the bank had to approve the allocation of the loan on August 22, 2016, but then the loan approval was postponed.
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).
ADB postpones loan approval for Azerbaijan
04 June 2016
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The Asian Development Bank (ADB) will consider the possibility to allocate loan worth $1.505 billion for the second phase of the Azerbaijani Shah Deniz gas and condensate field`s development September 27, 2016, ADB message said June 3.
