The #development objective of the Trans-#Anatolian Natural #Gas #Pipeline (TANAP) Project for Azerbaijan and Turkey is to diversify #Azerbaijan's gas #export markets and improve the security of Turkey's and South East Europe's energy supply. This project has comprises three components. The first component, TANAP #pipeline #system will finance infrastructure investments for the TANAP Pipeline System. At 1,850 km, TANAP accounts for over one half of the 3,500 km pipeline system from Azerbaijan to Italy. TANAP will begin at Turkey’s border with Georgia, in the Turkish village of Türkgözü in the Posof district of Ardahan province, and will end at the Greek border in the İpsala district of Edirne province. At that point, TANAP will connect to TAP which will convey the gas to European gas markets. TANAP will connect to the #Turkish natural #gas #network in two locations, at Eskişehir and Thrace, for the delivery of 6 bcm for the Turkish gas market. The second component, land acquisition related costs are/will be financed by resources other than the Bank loans, and cover: (a) cash compensation for private land acquisition (i.e. compensation for permanent, exclusive and temporary land rights basis; damages to crops and assets; and legal administrative expenses); (b) other assistance such as implementation of livelihood restoration plans and payments under the Resettlement Action Plan (RAP) Fund to assist affected informal land users, settlers and other expenses for payment of costs not payable under the Turkish law, but required to meet OP 4.12 provisions; (c) expenses for the forestry lands (i.e. entry costs and annual leases); and (d) design, implementation and monitoring of RAPs. The third component will finance consulting services for studies, design, engineering, procurement, construction management, supervision and monitoring.
Team LeaderAbdulaziz Faghi
BorrowerBOTAS, SOUTHERN GAS CORRIDOR CJSC (SGC)
CountryEurope and Central Asia
Approval Date(as of board presentation) December 20, 2016
Total Project CostUS$ 8600.00 million
Implementing AgencyTANAP DOGALGAZ ILETIM AS (TANAP)
RegionEurope and Central Asia
Closing DateJuly 31, 2021
Commitment AmountUS$ 800.00 million
Financing Plan At Board Presentation (US$) Financier Commitments European Bank For #Reconstruction And Development 500,000,000.00Ec: European Investment Bank1,300,000,000.00International Bank For Reconstruction And Development800,000,000.00Foreign Private Commercial Sources (Unidentified)1,000,000,000.00Borrower/Recipient 2,400,000,000.00 Private Commercial Sources (Identified)2,000,000,000.00 #Asian #Infrastructure Investment Bank 600,000,000.00
The #TANAP engagement shows how the World Bank Group can add value by helping to mobilize commercial finance and financiers for governments to meet their country’s growing needs for high-priority infrastructure projects.
The Bank team worked hard over the 15 months of the project preparation both to complete a full procurement and safeguards review of TANAP, and identify suitable co-financiers. The Bank’s total support of $800 million to TANAP’s two public shareholders goes along with US$2.4 billion for the project from other International Financial Institutions (#IFIs), including the Asian Infrastructure Investment Bank (#AIIB).
Support to TANAP is an integral part of the Bank Group’s broader program of policy, technical and financial cooperation in Turkey to support the energy sector reform agenda, and provide global knowledge and expertise, as well as financing to help Turkey achieve its ambition to become a regional energy hub.
The #energy sector has been our key engagement in Turkey – with investments amounting to nearly $6 billion in the last 10 years. The World Bank is currently preparing the country strategy for 2017 – 2021 and we expect the energy #sector to continue to be a key part of our program of collaboration with #Turkey.
We will continue to focus on helping Turkey to improve its energy supply security including the expansion of the gas storage capacity, increasing energy #efficiency, using more renewables, and integrating #renewables into the electricity transmission grid.
It is my great pleasure to announce that following the December 26th signing of TANAP and meeting all of the legal conditions as of today - I am declaring the loan effective as of today. I would like to wish #BOTAS and the #Ministry of Energy and #Natural Resources a very successful implementation of this key project.
We look forward to continuing our collaboration with the government of Turkey in TANAP and also in expanding cooperation in the energy sector by supporting other strategic priority #projects, such as the Tuz Golu Gas #Storage #Expansion project.