BAKU, Azerbaijan, Aug.11
By Leman Zeynalova - Trend:
The ICGB AD, a project company for construction of the Interconnector Greece-Bulgaria (IGB), expects to get the third tranche of loan from the European Investment Bank (EIB) in the fourth quarter of 2021, ICGB AD told Trend.
“A total of EUR 60 million under the approved EIB loan have been utilized by mid-2021. The first approved tranche (EUR 30 million) dates from August 2020 and the second (EUR 30 million) was utilized in January 2021. The 3rd tranche of EUR 35 million is planned for Q4 2021. Request for payment under the EEPR funding has been made and the utilization of EUR 16.5 million is expected by mid-November 2021. An audit of technical and financial reports is currently ongoing so that all requirements under the funding program can be met. The audit for the first approved tranche under the EEPR has already been implemented – it was carried out by the European Commission and covers the line pipe purchase contract, the EPC contract, Owner’s Engineer contract, archeology for IGB’s section on Bulgarian territory and FEED,” said the company.
The deadline for construction of IGB is the end of 2021.
The IGB project enables the transmission of gas and supplies from new sources, making it key to Bulgaria's energy security and part of the national plan for diversification of gas sources. The capacity of the project is 3 billion cubic meters with the option to reach 5 billion cubic meters. Half of the capacity of the interconnector is already reserved, as four of the shippers are completely new to the Bulgarian market. A contract has been signed for the supply of 1 billion cubic meters from Shah Deniz 2 based on a long-term contract with Bulgargaz.
The conclusion of the contract for construction of the interconnector dates back from the end of 2019, as one of the main commitments of the project company in structuring IGB is the obligation to control costs within the approved budget, which will ensure competitive transmission for customers. The delay in construction activities and the approved update of the construction schedule for the end of 2021 are due to objective reasons related to the global coronavirus pandemic and do not lead to direct losses. The established alternative route through the Greek system and Siderokastro provides a temporary solution for servicing the contract with Azerbaijan until IGB is put into commercial operation.
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