Turkmenistan to Get $700mn Loan for Tapi Line

Turkmenistan has signed a $700mn loan agreement with Islamic Development Bank to finance the Turkmenistan, Afghanistan, Pakistan India (Tapi) gas pipeline project, Turkmen state news agency reported October 13.

The agreement was signed in Washington, DC by Turkmenistan's state bank for foreign economic activities, the official agent of the government in international capital markets. The bank also functions as governor of the Islamic Development Bank's office in Turkmenistan and regulates the co-operation of IDB and Turkmen government.

In April, Tapi agreed to invest $200mn in the next stage of the multi-billion dollar project. Turkmengaz and Turkmennebitgazgurlushyk are undertaking to build the Turkmen section which will run from Galkynysh gas field to the Afghan border. In Afghanistan and Pakistan contractors will be chosen by tenders.

ADB was appointed the transaction advisor for the project in November 2013. The pipeline will export up to 33bn m³/yr towards Afghanistan, Pakistan, and India over 30 years. 

Shardul Sharma