Azerbaijan courts IFIs for gas project financing at World Bank annual meeting

By bne IntelliNews October 10, 2016

An Azerbaijani delegation met with representatives of the World Bank , the International Monetary Fund (IMF) and other international financial institutions at the World Bank and IMF annual meeting in Washington to discuss financing for gas exploration and transport scheme, the Southern Gas Corridor (SGC), the country's finance ministry said in a statement on October 8.

SGC is one of the largest hydrocarbon investment schemes in Europe at the moment, and will enable the export of 16bn cubic metres (cm) of Azerbaijani gas to Turkey and Europe starting in 2018. Earlier this year, Azerbaijan founded an eponymous state-owned company to run the domestic part of the project, which encompasses several other countries – Georgia, Turkey, Greece, Albania and Italy. SGC's CEO Afqan Isayev said Azerbaijan will be funding $11.5bn of the project, which has an estimated total cost of $46bn. 

Azerbaijan had invested $5.2bn in the project as of late August, with funding coming from a combination of state finances and capital markets. The government has injected some $1.7bn, SGC issued $2.5bn in bonds and the sovereign wealth fund SOFAZ and raised $1bn in Eurobond issue in March.

However, Baku is planning spending cuts for its 2017 state budget in order to offset lower revenues from oil and gas exports, meaning that it may need external funding for the remaining $6bn of the project.

According to the statement, an Azerbaijani delegation led by Finance Minister Samir Sharifov met with representatives of the IMF, World Bank, Asian Development Bank (ADB), European Investment Bank (EIB), the World Bank's Multilateral Investment Guarantee Agency and several commercial banks to raise financing for the project.

The outcome of the talks has not been revealed. The first news that Baku had initiated such negotiations surfaced in August. 

Related Articles

Azerbaijani parliament curtails Internet freedom with new defamation law

The Azerbaijani parliament approved a series of amendments to the criminal code on November 29 criminalising defamation on the Internet, Turan news agency reported. Specifically, the amendments ... more

Azerbaijan eyes privatisation of its largest lender

The Azerbaijani government will communicate a privatisation plan for the country's largest bank, International Bank of Azerbaijan (IBA), in 2017, Rufat Aslanli, chairman of the country's financial ... more

World Bank improves Eurasian growth forecasts

Eurasian economies are set for a modest recovery next year with growth projected to accelerate to 3.3% in Central Asia from 2.0% expected for 2016, the World Bank said in a new report released on ... more

Register here to continue reading this article and 2 more for free or 12 months full access inc. Magazine and Weekly Newspaper for just $119/year.

If you have already registered, enter the information below with the same email you used previously and you will be granted immediate access.

IntelliNews Pro subscribers click here

Thank you. Please complete your registration by confirming your email address. A confirmation email has been sent to the email address you provided.

Thank you for purchasing a bne IntelliNews subscription. We look forward to serving you as one of our paid subscribers. An email confirmation will be sent to the email address you have provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

IntelliNews Pro subscribers click here

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

If you have already registered, enter the information below with the same email you used previously and you will be granted immediate access.

Thank you. Please complete your registration by confirming your email address. The confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss