Home » 2018 » February » 24 » Transgaz Romania gets 60 million euros from EBRD for BRUA, the new gas corridor in CEE
By Edwig Ban
The European Bank for Reconstruction and Development (EBRD) is providing a RON 278 million (60-million euro) loan for the construction of a new gas pipeline between Romania, Bulgaria, Hungary/Ungaria and Austria (BRUA) in a boost to the development of regional European energy markets, according to a press statement released by EBRD on Friday.
The EBRD funds will be extended to Romania's Transgaz which is building the Romanian section of the pipeline. With a total length of 1,318 km, the so-called BRUA gas corridor will offer better interconnection between the countries along its route. It will boost the energy market by enabling new links with major gas infrastructure projects such as the Southern Gas Corridor, through TAP and TANAP, other central European gas hubs and future offshore production sites in the Black Sea.
The project will also ensure a greater integration of European gas markets and increase the security of supply.
Promoting the diversification of routes and sources of supply, the pipeline will also support the development of local economies and competition on regional energy markets to the benefit of consumers.
The total project cost is 479 million euros. In addition to the EBRD financing, Transgaz is investing 149 million euros, the European Union is providing 179 million euros in grants and the European Investment Bank (EIB) is contributing a 50-million-euro loan. The first phase of the project includes the construction of a 478 km pipeline between the technology node Podi?or near Bucharest and the one in Recas, in the west of the country, as well as three gas compressor stations to be placed along the route, at Podisor, Bibesti and Jupa in Romania.
'This is a truly special event, for our company and for the EBRD, as well. We are proud to have partnered with the EBRD in better securing the financing of the Romanian section of the BRUA project. As one of the currently largest infrastructure projects backed by the European Commission, BRUA is going to bring much-needed connectivity between Bulgaria, Romania, Hungary and Austria,' Transgaz Director General Ion Sterian is quoted as saying.
Matteo Patrone, EBRD Regional Director for Romania and Bulgaria, added: 'We are proud to partner with Transgaz in this crucial endeavour. This project is perfectly in line with our strategic objectives in Romania. While the cooperation with Transgaz has set the bar very high, we trust further opportunities to support the development of strategic infrastructure in the country will materialise both in the energy and transport sectors.'
The European Bank for Reconstruction and Development (EBRD) was established to help build a new, post-Cold War era in Central and Eastern Europe. It is currently active in more than 30 countries from central Europe to central Asia and the southern and eastern Mediterranean, plus the West Bank and Gaza. It also played a crucial role in stabilising its regions and planning for recovery after the shock of the global financial crisis in 2008.
The EBRD is a leading institutional investor in Romania. It has supported 29 projects with 546 million euros of debt and equity investments in 2017. Of this financing, 93 per cent was provided to the country's private sector.
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