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Final decision on additional EU grant for IGB due in 1Q18 – exec

16 August 2017 [12:03] - TODAY.AZ

By  Trend


Currently, ICGB AD, the company engaged in the implementation of the Interconnector Greece-Bulgaria (IGB) project, has an approved grant for co-financing the project in the amount of up to 45 million euros, under the European Energy Program for Recovery, Teodora Georgieva, executive officer at ICGB AD joint venture company, told Trend.

"Further, the Project Company is in an ongoing process of application for Structural Funds financing in Bulgaria and Greece, as the targeted additional grant financing to be obtained by both countries respectively is in the amount up to 39 million euros and 12 million euros," said the executive officer.

The award of the additional grant financing from the Structural Funds in Bulgaria and Greece is subject to evaluation by the European Commission and the final decision is expected in the first quarter of 2018, she added.

Georgieva noted that besides the approved grant financing and the open application for additional grant financing, Bulgarian government has approved, in the adopted budget for 2017, a state guarantee of up to 110 million euros in negotiated borrowing for the ICGB project.

She recalled that a state guarantee for the project was first approved in the 2015 state budget in the amount of up to 80 million euros and then in 2016 state budget the amount was increased up to 110 million euros.

"Total investment cost of the project is estimated at approximately 240 million euros (excluding the value-added tax) out of which 220 million euros account for capital expenditures. The funds for the project are to be provided by a grant financing, shareholder loan / equity and external loan financing," added Georgieva.

IGB is a gas pipeline, which will allow Bulgaria to receive Azerbaijani gas, in particular, the gas produced from Azerbaijan's Shah Deniz 2 gas and condensate field. IGB is expected to be connected to the Trans Adriatic Pipeline (TAP) via which gas from the Shah Deniz field will be delivered to the European markets.

The initial capacity of IGB will be 3 billion cubic meters of gas. The project’s cost is estimated at around 240 million euros.

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