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EU decision on additional funding for Greece-Bulgaria gas link seen in Q1 2018 - report

Author Mario Tanev
EU decision on additional funding for Greece-Bulgaria gas link seen in Q1 2018 - report Denys Prykhodov/

SOFIA (Bulgaria), August 16 (SeeNews) – The European Commission is expected to announce its final decision on whether it will allocate an additional 51 million euro ($59.7 million) for the construction of the gas interconnector Greece-Bulgaria (IGB) in the first quarter of 2018, Azerbaijani news agency Trend reported on Wednesday.

Bulgaria has applied for 39 million euro in additional financing, while Greece is seeking 12 million euro, Trend said quoting Teodora Georgieva, executive officer at ICGB – the joint venture company responsible for implementing the project.

The total sum of approved EU co-financing for the project currently amounts to 45 million euro, according to Trend.

"Total investment cost of the project is estimated at approximately 240 million euros (excluding the value-added tax) out of which 220 million euros account for capital expenditures," Georgieva said, as quoted by Trend. “The funds for the project are to be provided by a grant financing, shareholder loan / equity and external loan financing,” she added.

The 182 km long IGB pipeline will connect the northeastern Greek city of Komotini with Stara Zagora, in southern Bulgaria.

The pipeline will carry 3 billion cu m of natural gas annually in its initial stage and will have a maximum capacity of 5 billion cu m per year. It will eventually be connected to the Trans Adriatic Pipeline (TAP), which will carry Azeri gas to Europe through Greece.

The gas interconnector project is being implemented by joint venture company ICGB, registered in Bulgaria in 2011, with state-owned Bulgarian Energy Holding (BEH) and Greece-registered IGI Poseidon holding equal shares. Greek public gas corporation DEPA and Italian energy group Edison own 50% each of IGI Poseidon.

($ = 0.8540 euro)