The European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), IFC – a member of the World Bank Group -, the shareholders of Nabucco and Nabuco Gas Pipeline International GmbH has inked a mandate letter which marks the start of the appraisal process of the Nabucco project, a required step towards a potential financing package of up to EUR 4 billion.
According to project company information, the potential financing package will consist of up to EUR 2 billion from the EIB, up to EUR 1.2 billion from the EBRD and up to around EUR 800 million from IFC.
The appraisal of the project will include a thorough assessment of commercial, social and environmental aspects. The financing will need to be approved by the relevant governing bodies of each international financial institution. Commitments from potential lenders are expected to be sought in 2011.
Nabucco pipeline will link the Eastern border of Turkey to Baumgarten in Austria – one of the most important gas turntables in Central Europe – via Bulgaria, Romania and Hungary.