Posted on 09 September 2010
The Nabucco pipeline has taken a giant step forward this week when representatives from some of Europe’s biggest financial institutions signed on the dotted line with regards their financing of the project.
For anyone in the dark as to what Nabucco is, it is a huge pipeline project to connect Europe with the rich oil fields of the Caucasus, through Turkey, thereby bypassing cut-off happy Russia, in the hopes of making Europe’s oil supplies more secure and less prone to being affected by political disputes in Eastern Europe.
This week saw representatives from the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) — a World Bank Group affiliate — agree large loans with the Nabucco Gas Pipeline International GmbH and its partners — including the Turkish Pipeline Corporation (BOTAS). The EIB, EBRD and IFC also signed letters of authorisation for loans of 2 billion EUR, 1.2 billion EUR and 800 million EUR respectively.
BOTAS General Director Fazil Senel said Turkey is one of the masterminds of the Nabucco pipeline and added,
“We are supporting every step necessary for the project’s completion. Today’s signatures provide proof of the contributions these three important financial institutions will make. Seventy-five percent of the Nabucco pipeline will be on Turkish lands — and it will make substantial contributions to the places it passes through. Our producers, industrialists and our people will benefit from the project.”