The EBRD Board of Directors has approved an up to €500 million loan today for the construction of the Trans Adriatic Pipeline (TAP), a priority project of the European Union (EU) and the Energy Community.
The 878 kilometre pipeline will start at the Greek/Turkish border, cross Albania and, after passing under the Adriatic Sea, will end in southern Italy.
It constitutes the final leg of the Southern Gas Corridor and will transport gas from the Caspian region to Europe.
With an initial annual capacity of 10 billion cubic metres - equivalent to the energy consumption of approximately seven million households in Europe - the pipeline will make a significant contribution to the diversification of Europe’s energy supply.
It will also help make energy supply for consumers more reliable, as well as achieve significant CO2 reductions by providing a cleaner fuel, as compared to coal.
The first delivery of gas is expected by 2020.
The total project cost is €4.5 billion.
The European Investment Bank’s Board earlier this year approved TAP’s eligibility for a €1.5 billion loan, and further contributions from the export credit agencies of France, Germany and Italy are currently under consideration.
At the start point in Turkey TAP will connect to the Trans Anatolian Pipeline (TANAP) for which the EBRD approved a €500 million loan last October.
At the end point in Italy TAP will connect to the Italian natural gas network and from there with wider European networks.
TAP has been designed in accordance with good international practices, encompassing route selection, completion of environmental and social impact assessments, the implementation of robust contractor management controls and ongoing engagement and dialogue with the local population.
This includes national environmental requirements, relevant EU legislation and EBRD performance requirements under its Environmental and Social Policy.
The Bank will continue to monitor the project during construction and operations to ensure the continued compliance with these commitments.
The Southern Gas Corridor value chain has a total estimated cost of US$ 40 billion and includes gas infrastructure investments into a 3,500-kilometre network of pipelines crossing six countries.
The key components are the Shah Deniz offshore gas field in Azerbaijan, the Southern Caucasus Pipeline in Azerbaijan and Georgia, TANAP in Turkey and TAP. The inauguration of TANAP took place in June in Turkey.
To read this news in Russian.