Home / Economy / 70 Percent of Funds Allocated For Gas Storage Construction Are Loans
gas storage

70 Percent of Funds Allocated For Gas Storage Construction Are Loans

The loan participation in the construction of gas storage is expected to be 70%, deputy Minister of Energy Mariam Valishvili told “Course Course” .

According to her, negotiations with international financial institutions are actively underway and banks, at this stage evaluate the risks of the project.

“Now we are researching what financial structures should be done – what kind of resources are to be inquired and what is the appropriate financial costs that will be offered. European banks are traditionally quite competitive. We would like to have a source of classical funding, one we had for instance for wind power station. This means that in this case the corporation will be financing partially and 60-70% will be loan,” Valishvili says.

According to her, there are many who want to participate in the tender announced for the construction of gas storage.

As for the construction of the gas station, the works are planned to start from 2019. In 2021 the object must be exploited. Investment cost of the project is about 270 million dollars.