fbpx 52167-001: TAPI Gas Pipeline Project (Phase 1) | Asian Development Bank

Regional: TAPI Gas Pipeline Project (Phase 1)

Sovereign (Public) Project | 52167-001 Status: Proposed

The TAPI Pipeline extends for approx. 1,600 kilometers (km), from the Turkmenistan (TKM)-Afghanistan (AFG) border to the Pakistan (PAK)-India (IND) border. At full capacity, the pipeline will transport 33 billion cubic meters (bcm) of natural gas annually from TKM to respective buyers in AFG (5%), PAK (47.5%) and IND (47.5%) during the 30-year commercial operations period. The Project comprises the procurement, installation and operation of the pipeline and related facilities within AFG and PAK.

The project implementation is split into two phases: (i) Phase 1: AFG and PAK sections of the pipeline based on a free-flow transmission capacity of 11 billion bcm /annum; and (ii) Phase 2: six compressor stations along the AFG and PAK sections to ramp up to the full gas transmission capacity of 33 bcm / annum.

Project Details

Project Officer
Pladet, Roland C.J. Central and West Asia Department Request for information
Country
  • Regional
Sector
  • Energy
 
Project Name TAPI Gas Pipeline Project (Phase 1)
Project Number 52167-001
Country Regional
Afghanistan
India
Pakistan
Turkmenistan
Project Status Proposed
Project Type / Modality of Assistance Grant
Loan
Private Sector Loan
Source of Funding / Amount
GU: Turkmenistan-Afghanistan-Pakistan-India (TAPI) Natural Gas Pipeline Project
Ordinary capital resources US$ 500.00 million
Grant: Turkmenistan-Afghanistan-Pakistan-India (TAPI) Natural Gas Pipeline Project
concessional ordinary capital resources lending / Asian Development Fund US$ 116.00 million
Loan: Turkmenistan-Afghanistan-Pakistan-India (TAPI) Natural Gas Pipeline Project
Ordinary capital resources US$ 300.00 million
Ordinary capital resources US$ 116.00 million
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Partnerships
Private sector development
Sector / Subsector

Energy / Energy sector development and institutional reform

Gender Equity and Mainstreaming Some gender elements
Description

The TAPI Pipeline extends for approx. 1,600 kilometers (km), from the Turkmenistan (TKM)-Afghanistan (AFG) border to the Pakistan (PAK)-India (IND) border. At full capacity, the pipeline will transport 33 billion cubic meters (bcm) of natural gas annually from TKM to respective buyers in AFG (5%), PAK (47.5%) and IND (47.5%) during the 30-year commercial operations period. The Project comprises the procurement, installation and operation of the pipeline and related facilities within AFG and PAK.

The project implementation is split into two phases: (i) Phase 1: AFG and PAK sections of the pipeline based on a free-flow transmission capacity of 11 billion bcm /annum; and (ii) Phase 2: six compressor stations along the AFG and PAK sections to ramp up to the full gas transmission capacity of 33 bcm / annum.

The TAPI Project Scope relates to Phase 1 only, and the proceeds of ADB financing under consideration will be solely applied to AFG EPC contract. Ahead of the implementation of the Project, State Concern <> (Turkmengaz) has nearly completed the 214 km upstream pipeline in TKM with its own resources (including financing from the Islamic Development Bank) and the development of a dedicated portion of the Galkynysh gas field. In addition, Turkmengaz has initiated the procurement of two compressor stations approx. 30 km south of Mary and at the TKM side of the TKM-AFG border. GAIL (India) Limited will implement with its own resources the installation of approximately 10 km of pipeline from the PAK-IND border to its gas network terminus at Fazilka in IND.

Project Rationale and Linkage to Country/Regional Strategy Once operational, the TAPI Pipeline will allow TKM to diversify and expand its gas export markets to the southeast, into AFG, PAK, and IND. The Central Asia Regional Economic Cooperation (CAREC) Programs Strategy for Regional Cooperation in the Energy Sector has identified the TAPI Pipeline as one of the main links in the inter-energy relationship among CAREC countries. Overall, the TAPI Pipeline will have transformational impact on regional cooperation and will also support other initiatives aimed at increasing growth and economic stability in the region. The Project is aligned with the development strategies of TKM, AFG, PAK and IND, as reflected in their respective Country Partnership Strategies, and is also consistent with the objectives of ADBs Strategy 2030. The ADB financing instruments under consideration are included in the respective 2021-2023 Country Operations Business Plans for TKM and AFG, as well as for PAK (standby).
Impact

Improved fiscal position of TKM, AFG and PAK

Jobs created in AFG and PAK

Regional integration through gas exports from TKM to AFG, PAK and IND

Expected reduced greenhouse gas (GHG) emissions resulting from substitution of heavy fossil and solid fuels by cleaner natural gas (TBC)

Outcome Regional gas market is expanded
Outputs

TAPI Pipeline in AFG and PAK (1,600 km) completed

TAPI Pipeline commissioned and operating

Geographical Location Afghanistan - Nation-wide; India - Nation-wide; Pakistan - Nation-wide; Turkmenistan - Nation-wide
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project is classified as A' for environment due to significant land uptake, transboundary nature and crossing of key waterways and areas with high biodiversity value considered as critical habitat. Other impacts related with dust / air emissions, noise generation, occupational and community health and safety are also envisaged during project construction and operation phases.
Involuntary Resettlement Based on information provided by TPCL and its consultants, the project is classified as category A for involuntary resettlement (IR) impacts (due to significant land take, and consequent probable impacts on livelihoods).
Indigenous Peoples TKM is an ethnically homogeneous state with Turkmens comprising 85% of the population. The provinces in AFG where the pipeline crosses are mainly comprised of Pashtuns. Other major ethnic groups that include Tajik, Hazara, Uzbek and Baloch may also be present in the project area. The two provinces in PAK where the pipeline crosses are inhabited by Pashtuns and Baloch. None of these major groups and other ethnic groups along the corridor have been identified as indigenous peoples as defined by the Safeguard Policy Statement (SPS). At this stage, the project is classified as category C for impacts on indigenous peoples (IP).
Stakeholder Communication, Participation, and Consultation
During Project Design The main stakeholders of the project would include local residents who will benefit from improved energy supply, central and local governments specifically in the energy sector in the 4 countries, civil society organizations, and the people to be affected by civil works, specifically in the communities surrounding the planned pipeline in AFG and PAK. The potential primary beneficiaries of the project are citizens who will benefit from improved and reliable energy access, as well as the people in TKM who will benefit from increased revenues from gas exports. The affected groups and individuals will be consulted through focus group discussions and consultation meetings during project design.
During Project Implementation
Business Opportunities
Consulting Services TAPI Pipeline Company Limited (TPCL) will be the responsible Implementing Agency (IA) for all project implementation activities, including procurement and award and management of all supply, works, consulting services, and other contracts, as well as ensuring the safeguard requirements of the governments and financing agencies are complied with. A project agreement will be executed between ADB, TPCL and designated national IAs in TKM, AFG and PAK, under which all IAs will assume direct obligations to implement the project in compliance with ADB's policy and other requirements. The financing agreements between ADB and TKM, AFG and PAK, respectively, will include provisions requiring that their respective state owned gas entities exercise their powers as (indirect) shareholders of TPCL, to ensure that TPCL: (i) implements the project in accordance with the project documentation (including financing agreements, project agreement, and safeguards documents); and (ii) undertakes any other actions required to facilitate project completion (including provision of approvals for project procurement and performing project oversight and monitoring).
Procurement ADB will conduct due diligence on the procurement process, evaluation criteria, and the evaluations to ensure that procurement of the goods and services eligible for ADB financing has been undertaken in a manner consistent with ADB's Procurement Policy (2017, as amended from time to time) and Procurement Regulations for ADB Borrowers (2017, as amended from time to time), including ADB's Core Procurement Principles.
Responsible ADB Officer Pladet, Roland C.J.
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
Central Bank of Turkmenistan
22 Bitarap Turkmenistan Street
Ashgabat 744000, Turkmenistan
Ministry of Economic Affairs, Economic Affairs Division
Block Q, Pakistan Secretariat
Islamabad, ICT, Pakistan 44000
Ministry of Finance
Pashtunistan Watt,
Kabul,
Islamic Republic of Afghanistan
Ministry of Finance and Economy of Turkmenistan
156, Archabil Avenue
TAPI Pipeline Company Limited (TPCL)
306 Jumeirah Business Centre (JBC1), Cluster G, Jumeirah Lakes Towers, Dubai, UAE
Timetable
Concept Clearance 18 May 2020
Fact Finding 01 Jun 2021 to 15 Jun 2021
MRM 16 Aug 2021
Approval -
Last Review Mission -
Last PDS Update 10 Mar 2021

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.

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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.

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

No tenders for this project were found.

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.