The volume of investments so far made in the Interconnector Greece-Bulgaria (IGB) project, envisaging transportation of Azerbaijani gas to Bulgaria is 17 million euros, Teodora Georgieva, executive officer at ICGB AD joint venture company, the project’s operator, told Trend.
She noted that this amount has been invested by the project’s shareholders Bulgarian Energy Holding EAD and IGI Poseidon S.A. (equally owned by Greek Depa and Italy’s Edison).
Georgieva said that the estimated total investment cost of the project is 240 million euros without valued-added tax (VAT), out of which approximately 220 million euros is capital expenditure and 20 million euros is the development cost.
The remaining funds for the project are to be provided by a grant financing, shareholder loan/equity and external loan financing, she added.
Georgieva pointed out that the project has an approved grant of 45 million euros under the European Energy Program for Recovery (EEPR) and 110 million euros worth state guarantee from Bulgarian government.
“Further the project company has applied for additional grant financing from the ESIF (European Structural and Investment Funds) of Bulgaria and Greece. The amount of the grant financing is subject to evaluation and approval by the relevant managing authorities of both countries and European Commission,” she added.
The ICGB application for ESIF financing in Bulgaria requires the amendment of the Operational Program “Innovation and Competitiveness” as well as the addition of the project company as a direct beneficiary.
IGB is a gas pipeline, which will allow Bulgaria to receive Azerbaijani gas, in particular, the gas produced from Azerbaijan’s Shah Deniz 2 gas and condensate field. IGB is expected to be connected to the Trans Adriatic Pipeline (TAP) via which gas from the Shah Deniz field will be delivered to the European markets.
The initial capacity of IGB will be 3 billion cubic meters of gas.