Tazeen Akhtar
Chief Executive TAPI Pipeline Company Limited Mr Muhmmet Miyrat Amanov has said that India-Pakistan escalation will not affect this project because both countries have given commitments to this project. Regarding Afghan situation, he said that we have discussed the matters of security with Afghan Gov and we are satisfied on their surety about security. He said we have not contacted Taliban for anything on TAPI. We will discuss further with Afghan Gov in next two months.
He was addressing a selected gathering of representatives of member states and envoys of other countries at a lecture hosted by renown Islamabad based think tank Oxbridge by Irshad Ullah Khan on 12Feb 2019. Intellectuals, Media and Industry people were also present
“Turkmenistan and its President are keen to implement this project and we have hopes that Pakistan will also take steps towards implementation”, Mr Myrat added.
Mr. Myrat said to a question that the price of the gas will be fixed according to the current rates. He said that it will be cheaper than LNG.
Indian H.C Ajay Bisarya said that it is not a gas pipeline but it is a peace pipeline that will promote peace among the member countries. India takes the project very positively. The project will enhance understanding among the four nations. Ambassador of Afghanistan also participated in the lecture.
Here it is worth mentioning that Ajay Bisarya was the main negotiator from Indian side when the dialogue on the project was initiated.
Ambassador of Turkmenistan Atadjan Mavlamov said that implementation of TAPI project will bring betterment in the relations of the members. It is a win win project and will benefit all.
Irshad Ullah Khan of Oxbridge Trust said that all four governments should move forward on the project. It will be fruitful for the people of member countries.
Earlier Muhammet Myrat Amanov in his presentation elaborated different aspects of the project including the financial matters as well.
Introducing to the Project with background, he said that the “TAPI Pipeline Project” was originally conceived in the 1990s with a view to monetize Turkmenistan’s vast natural gas reserves.The “Galkynysh” field is amongst the world’s largest proven natural gas reserves (27.4 trillion cubic meters).
Afghanistan, Pakistan and India have and are forecast to have ever increasing demand for natural gas. The TAPI Project comprises of the engineering, procurement, construction, operation and maintenance of a 1,840 km from Turkmenistan to Afghanistan, Pakistan and India.
Talking about sponsors and Government support, Mr Myrat said that the Governments of Turkmenistan, Afghanistan, Pakistan and India are fully supportive of the TAPI Pipeline Project and have nominated and following state owned gas companies as Sponsors to promote and invest in the TAPI Pipeline Company Limited (TPCL):
Sponsors are State Concern “Turkmengas”Afghan, Gas Enterprise,Inter State Gas Systems (Private)Limited ,GAIL (India) Limited and sharing of TPCL is 85%,5%,5%and 5% respectively.
Natural gas power generation is significantly cheaper than diesel and fuel oil. Access to natural gas will stimulate industrialization and investment. Afghanistan and Pakistan will benefit from billions of dollars of transit fees. Project contracts (e.g. EPC and O&M) will be awarded to contractors from Germany, Italy, Greece and Turkey providing further economic benefits to those nations.
Four countries coordinating effectively to implement the Project.It will Increase co-operation between host nations. The project will be a catalyst for peace and stability in the region.
India and Pakistan are among the world’s largest contributors of CO2 emissions (4th and 33rd , respectively).Natural gas offers a cheaper, safer and cleaner alternative to coal and diesel fired power generation. Environmental and Social impact assessment undertaken by a world class consultant.
The Project will be executed in accordance with world bank EHS guidelines and IFC performance standards.
Mr Myrat also covered environmental aspect in his briefing. He said that extensive community outreach programs are planned. Inhabitants along the route of the pipeline will be benefitted. 32 districts along the pipeline corridor. Planned investment in infrastructure, housing, welfare, education, etc is also there.
The funding plan for the TAPI Pipeline Project is split into two phases:
Phase 1-Funding Plan-Debt will be provided by Multilateral Development Banks (e.g. Asian Development Bank) and Commercial Banks.
World leading Export Credit Agencies will provide cover finance, such as – SACE (Italy), Euler Hermes (Germany), TurkExim (Turkey)
Support provided by Respective Governments.
Phase 2-Project finance or sovereign guaranteed debt (to be confirmed following Phase 1 financial close).
The speakers were unanimous in their opinion that the Project has the full support of the member Govs.The Project is strategically important for the region.
The Project brings many direct and indirect social, economic , political and environmental benefits to the region. Beacon for peace and stability. The Project is being implemented in accordance with the highest international standards. Guided by a world-class advisory team.
The writer is Editor of Pakistan in the World and can be reached at tazeen303@gmail.com
