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Green light for Nabucco appraisal marks important step for EU energy security
06-09-2010
An important step has been taken towards a potential financing package of up to €4 billion for the flagship Nabucco gas pipeline project, with today’s signature of a mandate letter that marks the start of the appraisal process for the project.
The mandate letter was signed by the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), IFC (a member of the World Bank Group), the shareholders of Nabucco and NABUCCO Gas Pipeline International GmbH.
Nabucco is the flagship project for meeting future EU gas demand and will diversify Europe’s pool of supplier countries. The potential financing package will consist of up to €2 billion from the EIB, up to €1.2 billion from the EBRD, and up to around €800 million from IFC.
The Nabucco gas pipeline project addresses the EU’s priority goal of achieving energy security via the diversification of gas routes and gas supplies. It will deliver additional volumes of gas from different sources through a new supply route to the EU member states and their neighbours. Nabucco provides a strategic solution by enabling the transport of gas from both the Caspian Region and the Middle East.
The mandate letter formalises the conditions under which the three International Financial Institutions will conduct their appraisal of the Nabucco project, and provides an indication of the potential level of financing. It sets out the work that will be required before a final financing decision can be taken.
A press release from the EIB said the involvement of the three IFIs was a demonstration of global and European support for the project, and represents an important milestone in ensuring the overall financing of Nabucco. (ENPI Info Centre)
EIB press release
