Azerbaijan: Shah Deniz Stage II Investment Plan

Sovereign Project | 49451-001

The Transaction Technical Assistance (TRTA) was originally designed to undertake necessary due diligence for preparing multi-tranche financing facility (MFF) and tranche 1 to co-finance the expansion of the Shah Deniz gas field (SD-II). The project financing modality was subsequently changed by replacing the MFF with a single project partial credit guarantee (PCG).

Project Details

  • Project Officer
    Pladet, Roland C.J.
    Central and West Asia Department
    Request for information
  • Country/Economy
    Azerbaijan
  • Modality
    • Technical Assistance
  • Sector
    • Energy
Project Name Shah Deniz Stage II Investment Plan
Project Number 49451-001
Country / Economy Azerbaijan
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 9106-AZE: Shah Deniz Stage II Investment Plan
Technical Assistance Special Fund US$ 1.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Energy / Oil and gas transmission and distribution

Gender Equity and Mainstreaming No gender elements
Description The Transaction Technical Assistance (TRTA) was originally designed to undertake necessary due diligence for preparing multi-tranche financing facility (MFF) and tranche 1 to co-finance the expansion of the Shah Deniz gas field (SD-II). The project financing modality was subsequently changed by replacing the MFF with a single project partial credit guarantee (PCG).
Project Rationale and Linkage to Country/Regional Strategy ADB financing support was urgently needed as Southern Gas Corridor CJSC (SGC) had already committed to finance its portion of the project, while facing challenges due to depressed hydrocarbon revenues and severe local currency depreciations. SD-II will increase the Shah Deniz gas production capacity. The additional gas will be exported to Europe, via Georgia and Turkey, creating the Southern Gas Corridor as an alternative for gas deliveries to Europe from the Caspian region and the Middle East. The project supports regional cooperation and integration, a core operational area in ADB''s Strategy 2020 and will improve Europe''s energy security by diversifying its gas sources. Sustained revenues from gas exports will fund social and infrastructure spending to help diversify Azerbaijan''s economy away from its high dependency on hydrocarbons.
Impact
Project Outcome
Description of Outcome
Progress Toward Outcome
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation In June 2018, based on consultation with SGC, the TA amount was reduced from $1.0 million to $700,000. The $300,000 was cancelled since no additional financing support was expected. Of the $700,000, $600,000 was allocated for Roadmap for Beneficial Ownership Disclosure (RBOD) implementation activities and the remaining $100,000 has been used for original TA purposes and/or is maintained for other miscellaneous TA activities.
Business Opportunities
Consulting Services RBOD implementation consultant commenced consulting services on 1 June 2018 expected to be completed on 31 October 2019. An international economist was recruited for the due diligence of the Shah Deniz Gas Field Expansion Project on 18 August 2016 and completed the assignment on 31 December 2017.
Procurement NA
Responsible ADB Officer Pladet, Roland C.J.
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
Ministry of Finance
83, Same Vurgun Street AZ1022 Baku, Azerbaijan
Southern Gas Corridor Closed Joint-Stock Company
1/3 Nizami Street, Sapphire Plaza
Baku, Azerbaijan, AZ1001
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 26 Apr 2016
Last Review Mission -
Last PDS Update 06 May 2019

TA 9106-AZE

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
26 Apr 2016 06 Jun 2016 06 Jun 2016 31 Dec 2016 30 Jun 2020 08 Jun 2020
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,000,000.00 0.00 0.00 0.00 0.00 0.00 1,000,000.00 17 Jun 2022 358,266.78

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Shah Deniz Stage II Investment Plan: Project Preparatory Technical Assistance Report Project Preparatory Technical Assistance Reports Apr 2016
Shah Deniz Stage II Investment Plan: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Apr 2016

Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
SUPPORTING THE IMPLEMENTATION OF THE BENEFICIAL OWNERSHIP DISCLOSURE ROADMAP Firm - Consulting Closed 13 Feb 2018 17 Feb 2018

Contracts Awarded

Contract Title Approval Number Contract Date Contractor | Address Executing Agency Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
Project Preparatory Technical Assistance 9106 29 May 2018 BDO Azerbaijan LLC(AZERBAIJAN) in association with Engaged Consulting Limited(UNITED KINGDOM) | Bridge Plaza, 12th floor, 6 Bakikhanov S AZ1065 Azerbaijan Ministry of Finance 501,170.00

Procurement Plan

None currently available.