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AIIB Approves $600 Million to Azerbaijan To Finance TANAP Gas Pipeline Project

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EIRNS—The AIIB’s largest loan in its inaugural year, of $600 million to Azerbaijan, has now been approved by its Board of Directors, Xinhua reported today. The loan will be used to support construction of a natural gas pipeline from Azerbaijan through Turkey, known as the Trans-Anatolian Natural Gas Pipeline Project. The TANAP will be co-financed by the World Bank.

The approval brings the total amount loaned by the bank in its first year to $1.73 billion in nine infrastructure projects across seven countries. The bank approved its first four loans, totaling $509 million, in June. Three of those four loans were to co-finance projects with multilateral development bank partners.

As a part of the Southern Gas Corridor Program, the TANAP will transport natural gas extracted from the Shah Deniz 2 field located in the Caspian Sea in Azerbaijan, across Turkey and then to Europe. Turkey is the host country of the project.

Ramtanu Maitra