BAKU, Jan. 16 (Xinhua) -- Azerbaijan and the World Bank signed a loan agreement on Monday on the Trans Anatolian Natural Gas Pipeline (TANAP) project, local Azertag News Agency said.
The agreement was signed by World Bank regional director for the South Caucasus Mercy Tembon and Azerbaijan's Head of Southern Gas Corridor CJSC Afgan Isayev the document in Baku.
The World Bank's Board of Executive Directors approved a loan of 400 million U.S. dollars to Azerbaijan for the construction of gas pipeline TANAP, which is a part of the Southern Gas Corridor Program.
The project will transport natural gas from a gas field in Azerbaijan to Turkey, and further to Europe, aiming to diversify Azerbaijan's gas export markets and improve the security of the energy supply in Turkey and southeast Europe.
The pipeline is 1,850 kilometers long, and it is expected to deliver gas to Turkey in June 2018, and to Europe two years later. The planned capacity of the pipeline would be 16 billion cubic metres of natural gas per year at initial stage and would be increased later.
The project was announced on November 17, 2011 at the Third Black Sea Energy and Economic Forum in Istanbul, Turkey. On 26 December 2011, Turkey and Azerbaijan signed a memorandum of understanding establishing a consortium to build and operate the pipeline. Construction of the pipeline began in March 2015.
The project contributes to World Bank's partnership with Azerbaijan, and supports stronger economic competitiveness, by integrating Azerbaijan with regional and European energy markets.
