EBRD allots Euro 1 billion for launch of NABUCCO

The EBRD has confirmed its readiness to lead the syndicate of banks who will finance the NABUCCO natural gas pipeline project. It is prepared to allot an initial Euro 1 billion as start up money for the implementation of the project.

The NABUCCO pipeline will be approximately 3,300 kilometres long and should pass through Azerbaijan, Georgia, Turkey, Bulgaria, Romania, Hungary, Austria and Germany. It is estimated that NABUCCO will provide Europe with 26-32 billion cubic metres of natural gas from Azerbaijan, Turkmenistan and Uzbekistan annually. However it is not yet known how Central Asian gas will reach Azerbaijan.

General Director of the project Reinhard Mitchek said some time ago that the project will be signed soon by intergovernmental officials. The overall cost of the project will be approximately Euro 7 billion, 25% of which will be allotted by EBRD. Mitchek is sure that the project will have no problems obtaining financing.