Shah Deniz Gas Field Expansion Project (ADB-49451-002)

Countries
  • Azerbaijan
Where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
A
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Dec 7, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Republic of Azerbaijan
The holder of the loan, grant, or other investment.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 526.30 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 4,492.70 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Aug 11, 2017

Disclosed by Bank Dec 8, 2016


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Project Description
This project will support the Government of Azerbaijan's ongoing investment in the development of the Shah Deniz Stage II gas field expansion. The project outputs include (i) Shah Deniz-II natural gas production and processing facility under construction, (ii) greater efficiency in gas sector, and (iii) jobs created during construction and operations. These components include (i) construction of two new bridge-linked oil platforms, (ii) drilling of 26 new subsea wells, (iii) construction of a new 500 kilometer subsea pipeline network, (iv) consolidation of government’s interests in Shah Deniz within a single entity, and (v) creation of over 19,000 temporary and 1,800 permanent local jobs during construction and operation of Shah Deniz-II, respectively.
Investment Description
  • Asian Development Bank (ADB)
This is a two-pronged investment: Loan from ordinary capital resources worth US$500 million. Partial Credit Guarantee worth US$26.3 million.
Contact Information
ACCOUNTABILITY MECHANISM OF ADB The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main