BAKU, Azerbaijan, Sept.8. ICGB AD, the project company for construction of the Interconnector Greece-Bulgaria (IGB), which is aimed at transporting Azerbaijani gas, has provided detailed background on the financial aspect of the project and its current status.
“A total of €22.9 million have been received by August 31st under the €45 million grant approved by the European Energy Program for Recovery (EEPR). A total of €36.8 million have been received by August 31st from the € 39 million grant under the Innovations and Competitiveness Operational Program (OPIC) 2014-2020 provided by the European Structural and Investment Funds (ESIF). Around €90 million has been received under the long-term loan from the European Investment Bank amounting to a total of € 109.9 million,” the company told Trend.
The ICGB AD noted that all funds that are the shareholders’ participation in the project have been received.
The total approved budget for the IGB pipeline is EUR 240 million and it is secured through a long-term loan from the European Investment Bank (EUR 110 m), the European energy program for recovery (EUR 45 m), the Operational Program Innovation and Competitiveness (EUR 39 m) and capital participation of the shareholders – in this case the Bulgarian Energy Holding and IGI Poseidon
The commercial operation of IGB is of key importance to fortify the security of supply and to ensure the diversification of natural gas sources for Bulgaria and the region of South-Eastern Europe. The project connects Bulgaria to the Southern Gas Corridor and will enable secure supplies from various sources to a number of CSEE countries, including Moldova and Ukraine.
The IGB project is of key importance for increasing security of supply and for ensuring diversification of natural gas sources for Bulgaria and the region of Southeast Europe. At the regional level, IGB will provide access to the gas transmission network for Bulgarian municipalities and regions that didn’t have an option for connectivity. The interconnector with Greece is an entirely new route for the transmission of natural gas to Europe and will give Bulgaria and the region access to supplies from new sources. The project will connect the country with the Southern Gas Corridor and has excellent synergy with other major energy projects such as TAP, TANAP, EastMed and the LNG terminal at Alexandroupolis.