There is no doubt that the project is being financed and will continue to be financed in accordance with the commitments undertaken by the shareholders of each of its specific elements, he noted.
“We have already concluded financing agreements with all major investors, and some of them, in turn, have agreements on external financing,” he said. “No matter if it is an upstream component of this project or the South Caucasus gas pipeline - all shareholders, of course, fulfill their commitments, and, first of all, their commitments to Azerbaijan according to the conditions of the production sharing agreement. This can be done both at the expense of own funds and attracted ones - separate companies attracted external borrowing to finance their share.”
He added that the situation is the same regarding capital investments in the construction of the Trans-Anatolian Natural Gas pipeline (TANAP) and the Trans Adriatic Pipeline (TAP).
“We have no doubt that all expected external borrowings will be received on time and in full volume in accordance with agreements with banks and financial institutions,” said Baylarbayov.
He reminded that recently, another agreement on a syndicated loan worth $750 million has been signed for the construction of TANAP under the guarantees of the Multilateral Investment Guarantee Agency.
This is while on July 4, the European Bank for Reconstruction and Development (EBRD) announced the allocation of 500 million euros for TAP, he added.
“Most of the funds have already been invested in the projects included in the Southern Gas Corridor, and there are no worries about financing the remaining part,” he said.
A ceremony to launch TANAP took place June 12 in the Turkish city of Eskisehir. TANAP, together with TAP, is a part of the Southern Gas Corridor, which provides for the transportation of gas from the Azerbaijani field Shah Deniz to Europe.
The initial capacity of TANAP is expected to be 16 billion cubic meters of gas per year. About six billion cubic meters will be supplied to Turkey, and the rest to Europe. After completion of the TAP, the gas will reach Europe in early 2020.
The share distribution in TANAP is as follows: Southern Gas Corridor CJSC - 51 percent, SOCAR Turkey Enerji - 7 percent, Botas - 30 percent, and BP - 12 percent.
The launching ceremony of the first stage of the Southern Gas Corridor project was held in Baku on May 29.
The gas from the Azerbaijani Shah Deniz field has already gone through the first segment of the Southern Gas Corridor - from the Sangachal terminal to the expanded South Caucasus Pipeline.
The Southern Gas Corridor, which costs more than $40 billion, is one of the priority projects for the EU and provides for the transportation of 10 billion cubic meters of Azerbaijani gas from the Caspian region through Georgia and Turkey to Europe.
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