AIIB approves first loan in Turkey to improve gas supply

28 June 2018

AIIB approves first loan in Turkey to improve gas supply

The Board of Directors of the Asian Infrastructure Investment Bank (AIIB) has approved a USD600-million loan to increase the reliability and security of Turkey’s gas supply. The project, co-financed with the World Bank, is AIIB’s first project to be financed in Turkey.

The project will raise the capacity of the Tuz Golu underground gas storage facility by 4.2 billion cubic meters per year—from 1.2 bcm to 5.4 bcm—and will help improve Turkey’s energy security and reduce the carbon intensity of the power supply.

“The development of gas storage capacity is an integral component of Turkey’s energy strategy,” said AIIB Vice President and Chief Investment Officer D.J. Pandian. “Our investment in this project will bring great benefits to gas consumers across Turkey and will help AIIB establish long-term cooperation with the government and other important entities in the country.”

The project consists of three components:

  • Tuz Golu Gas Storage Expansion Facilities – Consisting of surface and subsurface facilities; water and brine pipelines; electricity supply; instrument, control and telecommunication systems and contractor services.
  • Supervision Consultancy  – Consisting of review of engineering drawings, supervision of construction, installation of facilities and development and implementation of overall project quality assurance and quality control program.
  • ESIA and RAP Monitoring Consultancy – Consisting of regular monitoring of construction activity compliance with the Environmental and Social Impact Assessment and the Resettlement Action Plans.

“This project improves gas supply reliability which is vital to Turkey’s economy, as the country depends heavily on gas imports,” said AIIB Director General of Investment Operations Yee Ean Pang. ”The project promotes energy security and reduces the carbon intensity of energy supply which are key components of AIIB’s energy strategy.”

Original source: AIIB
Published on 27 June 2018