TAPI shareholders sign investment agreement
The shareholders of the TAPI Pipeline Company (TPCL) signed an Investment Agreement witnessed by petroleum ministers and senior government officials of Turkmenistan, Afghanistan, Pakistan and India, and senior Asian Development Bank (ADB) officials. It will pave the way for long-term natural gas supplies that will give a major boost to the signatory countries' economies and energy security, the Business Standard newspaper reports.
The Investment Agreement provides an initial budget of over $200 million to fund the next phase of the development of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) natural gas pipeline. This includes funding for detailed engineering and route surveys, environmental and social safeguard studies, and procurement and financing activities, to enable a final investment decision, after which construction can begin.
"The financial support committed by the shareholders of TAPI under this investment agreement is a true testament of their intention to get this historic project off the ground and running. Turkmenistan's vision is strongly aligned with that of its TAPI neighbors to make this project a reality and to deliver a truly regional project that will address energy demands and support economic prosperity and security in the region," the Deputy Chairman of the Cabinet of Ministers of Turkmenistan, Yagshygeldi Kakayev, said.
"TAPI exemplifies ADB's key role in promoting regional cooperation and integration over the past 20 years. TAPI will unlock economic opportunities, transform infrastructure, diversify the energy market for Turkmenistan, and enhance energy security for the region," ADB's Director General for the Central and West Asia Department, Sean O'Sullivan, said.
Acting as TAPI secretariat since 2003 and as transaction advisor since 2013, ADB has been instrumental in the progress of the TAPI pipeline to date. In the latter role, ADB helped establish TPCL, select Turkmengaz as consortium leader, and finalize the Shareholders and Investment Agreements.