Islamabad: The Islamic Development Bank (IDB) has pledged USD 1 billion to fund the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project, a news source quoted TAPI Pipeline Company Limited Chief Executive Officer (CEO) Muhammetmyrat Amanov. The federal government has already allocated funds in the federal budget for the pipeline project.
Amanov said IDB would provide USD 700 million for the TAPI pipeline portion in Turkmenistan and that negotiations were underway to secure an additional USD 300 million to fund the construction of the remaining portion of the pipeline.
The project would be completed in two phases; funds for Phase-I would be secured using long-term debt sourced from a mixture of multilateral development agencies, export credit agencies and commercial banks.
Pipeline will be constructed in the first phase, whereas six compressors will be installed in the second phase. The project would commence in the first quarter of 2019. Under the project, Pakistan and India each would get 1.325 billion cubic feet per day (bcfd), while Afghanistan would be provided 0.5bcfd.
