Speech by World Bank Vice President for Europe and Central Asia on TANAP Project in Turkey

Your Excellency Mr. Minister,

Distinguished colleagues, ladies and gentlemen,

Thank you for the kind invitation to join the launch of the Trans-Anatolian Natural Gas Pipeline (TANAP) Project. This transformational project is the first realization of Europe’s southern gas corridor, which aims to bring gas from the Caspian Sea to Europe through Turkey (and Georgia). In doing so, the project helps Turkey to secure its own energy supply and Azerbaijan to diversify its gas export markets. The pipeline is also key to integrating the gas markets of South Eastern Europe.

We are happy that the World Bank Group, as a long-standing partner, was provided an opportunity to support Turkey and other countries in realizing this highly ambitious and complex regional project.

Let me congratulate everyone involved in this success!  The World Bank long-term loan to Turkey through BOTAS, and to Azerbaijan through SGC, are an example of the World Bank being able to support regional projects and economic integration.

In addition, the World Bank Group’s Multilateral Investment Guarantee Agency (MIGA) is extending a guarantee envelope of up to US$1.2 billion which will help to raise part of the US$2 billion in private sector financing beyond BP’s own US$1 billion shareholder contribution. A US$23 million social and environmental program will be included to help affected communities with livelihoods.

The TANAP engagement shows how the World Bank Group can add value by helping to mobilize commercial finance and financiers for governments to meet their country’s growing needs for high-priority infrastructure projects.

The Bank team worked hard over the 15 months of the project preparation both to complete a full procurement and safeguards review of TANAP, and identify suitable co-financiers. The Bank’s total support of $800 million to TANAP’s two public shareholders goes along with US$2.4 billion for the project from other International Financial Institutions (IFIs), including the Asian Infrastructure Investment Bank (AIIB).

Support to TANAP is an integral part of the Bank Group’s broader program of policy, technical and financial cooperation in Turkey to support the energy sector reform agenda, and provide global knowledge and expertise, as well as financing to help Turkey achieve its ambition to become a regional energy hub.

The energy sector has been our key engagement in Turkey – with investments amounting to nearly $6 billion in the last 10 years. The World Bank is currently preparing the country strategy for 2017 – 2021 and we expect the energy sector to continue to be a key part of our program of collaboration with Turkey.

We will continue to focus on helping Turkey to improve its energy supply security including the expansion of the gas storage capacity, increasing energy efficiency, using more renewables, and integrating renewables into the electricity transmission grid.

It is my great pleasure to announce that following the December 26^th signing of TANAP and meeting all of the legal conditions as of today - I am declaring the loan effective as of today. I would like to wish BOTAS and the Ministry of Energy and Natural Resources a very successful implementation of this key project.

We look forward to continuing our collaboration with the government of Turkey in TANAP and also in expanding cooperation in the energy sector by supporting other strategic priority projects, such as the Tuz Golu Gas Storage Expansion project.

Thank you.