December 03, 2008

ADB may finance USD 5 billion in TAPI pipeline project

It is reported that Asian Development Bank is willing to invest USD 5 billion in the Turkmenistan Afghanistan Pakistan India gas pipeline and wants to support energy sector projects in Pakistan.

Mr Jaun M Miranda director general for central & west Asia department at ADB said that although the bank was willing to finance the TAPI project, it would not finance the USD 7 billion Iran Pakistan India gas pipeline project on which the United States had reservations.

The TAPI project is expected to transport 100 million standard cubic meters per day of gas, of which India’s share is likely to be 60 million standard cubic meters per day. The 1,680 kilometer long pipeline will run from the Dauletabad gas field in Turkmenistan to Afghanistan.

Mr Miranda said that the ADB would not reduce its annual financing to Pakistan, currently ranging between USD 1.5 billion and USD 2 billion. However, the bank would try to focus on priority areas. The ADB is at present funding 60 projects in Pakistan. He added that ADB is also willing to invest in dams and projects to reduce electricity transmission losses and improve private sector’s power production capacity.

Energy topped ADB’s priorities which included infrastructure, irrigation, urban services and reforms for the decentralization process.