Asia Development Bank may issue a $1.5 bln loan for Shakh-Deniz-2 development

​The Asia Development Bank in Q3 2016 may approve the issue of a loan for up to $1.505 bln to Azerbaijan for the realization of the second stage of Shakh-Deniz.

This is a very important project for us. Currently preparatory works are held according to the schedule. In late June the team of the Asia Development Bank will visit Baku to collect information on the project, a representative of the bank said.

According to them, on the results of the visit the terms of submitting the project for approval of the Board of Directors of the Bank will be determined. It is about the approval in Q3 2016, he said.

The funds of the Asia Development Bank are planned to be spent to support the efforts of Azerbaijan on the project financing and improvement of the country’s fiscal position by means of increasing the revenue from gas export from Shakh-Deniz and foundation of the additional work places.

The value of the second stage of Shakh-Deniz is currently assessed at $23.8 bln. The annual volume of extraction in the framework of Shakh-Deniz-2 will make up 16 bln cubic m a year, 10 bln out of which will be sent to Europe, 6 bln to the western regions of Turkey. Gas supply to Europe will start in 2020.