Islamic Development Bank (IDB) has committed $ 1 billion to finance Turkmenistan, Afghanistan, Pakistan and India (TAPI) gas pipeline project. Sources said that the gas agreement has been reached with IDB to provide $ 700 million for TAPI portion in Turkmenistan and negotiations are underway to provide additional $300 million for remaining part of TAPI pipeline project.
TAPI project will be implemented in two phases. In the first phase, pipeline will be constructed and in second phase, six compressors will be installed.
Asian Development Bank (ADB) and ICIEC had shown interest to provide $ 500 million and $ 300 million respectively to finance the project. Financial close of first phase will be achieved in first quarter of next year.
The Afghan government has given assurance to provide security of pipeline. The discussions are underway with different third party consultants to work out model of security of pipeline project.
Pakistan and Afghanistan have given commitment in inter-governmental agreement and framework agreement to provide security to the project. However, there are some issues which need to be resolved.