The board of the European Bank for Reconstruction and Development (EBRD) has approved a loan of up to 500 million euros for the construction of the Trans Adriatic Pipeline (TAP), it said in an announcement on Wednesday.
The 878-kilometer pipeline, which the EBRD described as a “priority project of the European Union,” will start at the Greek-Turkish border, cross Albania and pass under the Adriatic Sea to end in southern Italy, making “a significant contribution to the diversification of Europe’s energy supply.”
With an initial annual capacity of 10 billion cubic meters – equivalent to the energy consumption of approximately 7 million households in Europe – TAP is the final leg of the Southern Gas Corridor, transporting gas from the Caspian region to Europe.
TAP is also expected to contribute to the significant reduction of carbon dioxide emissions.
The EBRD said that the project’s total cost is 4.5 billion euros and that the European Investment Bank has already approved a 1.5 billion euro loan. “Further contributions from the export credit agencies of France, Germany and Italy are currently under consideration,” it added.