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MIGA’s goal is to promote foreign direct investment into developing countries to support economic growth and more.

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Explore different types of political risk insurance guarantees provided to investors and lenders.

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Explore global projects that support economic growth, reduce poverty and improves people’s lives.

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Learn about the progress MIGA is making in its mission to support economic growth, reduce poverty and improve people’s lives.

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World Bank building

MIGA’s goal is to promote foreign direct investment into developing countries to support economic growth and more.

Our Impact Dropdown Description

Hands husking peas into a basket full of peas

Learn about the progress MIGA is making in its mission to support economic growth, reduce poverty and improve people’s lives.

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Young woman bending down to tending to her outside chores

Explore different types of political risk insurance guarantees provided to investors and lenders.

Projects Dropdown Descriptions

Hyundai building

Explore global projects that support economic growth, reduce poverty and improves people’s lives.

Azerbaijan

Trans-Anatolian Pipeline

$1,110 million
Oil and Gas
Project Brief
Not Active
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Project Description

On June 27, 2018, MIGA  issued $779,773,701.89 and €286,149,783.65 (about US$330,923,769) in guarantees covering non-shareholder loans from AKA Ausfuhrkredit-Gesellschaft mbH, Banco Santander, S.A., Citibank N.A., Crédit Agricole Corporate and Investment Bank, ING Bank, a branch of ING-DIBA AG, Landesbank Baden-Württemberg, Société Générale, and (together, the Guarantee Holders), to the Azerbaijani State-Owned Enterprise Southern Gas Corridor CSJC (Azerbaijan) in order to finance its share of the Trans-Anatolian Natural Gas Pipeline (TANAP) in Turkey.  The guarantee holders are acting through Citibank N.A., as an Agent on their behalf.[1]

The guarantee is issued for a period of up to 15 years against the risk of non-honoring of a sovereign financial obligation.           

The Project consists of the construction and operation of TANAP, a part of the Southern Gas Corridor value chain, which aims to transport natural gas from Shah Deniz Gas Field to Turkey and Europe.

Environmental Categorization

The project is a category A under MIGA’s Policy on Environmental and Social Sustainability. Click here to view the Environmental and Social Review Summary prepared by MIGA for this investment in the project.

Development Impact
 

The Project will allow Azerbaijan to exploit the natural gas extracted under phase 2 of Shah Deniz and will facilitate the tripling of its gas exports, as well as extend their geographical reach. Southern Gas Corridor value chain will generate significant revenues for Azerbaijan from exports, transportation, tax and royalties that can contribute to its economic development. The Project will increase the diversity and security of Turkey's and Europe's energy supply by bringing natural gas from Azerbaijan to Turkey and Europe. The Project is expected to create employment opportunities directly and indirectly through construction, operation, support services, pipe manufacturing and other activities.

 

[1] The guarantees were cancelled on September 12, 2019.

 

 

 

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