Turkmenistan in Talks with IDB, Saudi, Japan for TAPI Financing

Ashgabat is seeking to rope in Islamic Development Bank, the Saudi Fund for Development and Japan's government as partners in the Turkmenistan, Afghanistan, Pakistan and India (TAPI) gas pipeline project, news agency Reuters reported Saturday.

According to Muhammetmyrat Amanov of TAPI Pipeline Company Limited the Turkmen government is in talks with all these parties on financing the construction of the multi-billion dollar gas pipeline that will transport gas from the Central Asian nation to Afghanistan, Pakistan and India.

"The Islamic Development Bank has expressed interest and readiness to finance the project, not only on Turkmenistan's territory, but also in Afghanistan and Pakistan," Amanov told a conference in the Turkmen resort of Avaza, Reuters reported.

"We are also working with the Saudi Fund for Development ... We have had meetings with the government of Japan. They have expressed interest,” he added.

Earlier this month, state owned Turkmengaz and the Islamic Development Bank (IDB) signed a protocol on the outcomes of the evaluation commission on the TAPI gas pipeline project, according to the official Turkmen newspaper Neutral Turkmenistan.

The much delayed transnational pipeline was formally inaugurated on December 13. Turkmengaz is the leader of the consortium and has 85 percent equity. Along with GAIL India, ISGS of Pakistan and Afghan Gas Enterprise (AGE) have 5 percent stake each. The TAPI pipeline will have a capacity to carry 90 million standard cubic metres a day (mmscmd) gas for 30 years and is planned to become operational in 2018.

In April, the four TAPI nations agreed to invest $200 million in the next stage of the multibillion dollar TAPI pipeline project. The agreement was signed during 24th meeting of the steering committee of the TAPI pipeline project which was held in Ashgabat.

ADB was appointed the transaction advisor for the TAPI gas pipeline project in November 2013.