Following an inspection, the EIB approved the third financial tranche for the IGB pipeline
The project company ICGB successfully passed the next independent audit for environmental compliance of all activities on the implementation of the IGB pipeline
The project company ICGB, which is responsible for the implementation of the Greece-Bulgaria interconnector, received the third tranche of the financing from the European Investment Bank (EIB). The amount of EUR 30 million was granted in early December following an inspection by the EIB of the performed activities for the realization of the IGB pipeline.
The agreement with the EIB was signed at the end of 2019, securing the final funding for the gas pipeline. The bank provides financing in the amount of EUR 110 million as a loan secured by a state guarantee from Bulgariа. The funds are allocated to the project company in four separate tranches, and before each one ICGB undergoes a thorough inspection of relevant project documentation and visits on site. The tranches are approved for payment only upon proof of quality performed activities and completed deliveries of equipment, in order to ensure full control and transparency in the use of the allocated funds.
The last tranche of EUR 19.9 million is expected to be utilized in the second quarter of 2022, and the amount will cover the cost of equipment supplies.
Earlier, after a detailed audit, ICGB received approval for the second interim payment from the European Energy Recovery Program (EEPR) grant. The European Commission has officially approved without any remarks the second interim payment of EUR 16,503,254.24, and the funds have already been received by the project company.
A grant in the total amount of EUR 39 million under the Operational Program "Innovation and Competitiveness" (OPIC) 2014-2020 has also been provided for the implementation of the IGB project. The first tranche under OPIC in the amount of EUR 28.5 million was approved in the spring of 2021, and the second approved payment amounts to EUR 8.7 million.
Currently, the project company also receives positive feedback on the regular audits performed by the independent foreign company RSK Ltd. under the EIB loan financing. The inspections are carried out every three months both in the construction phase and after the commissioning of the gas pipeline, and their main purpose is to verify that the IGB project is implemented in compliance with all environmental protection requirements in the regions along the route of the gas pipeline. ICGB's obligations to protect the environment and the animal species in the areas along the IGB route are among the main commitments the company has made to the EIB in order to be approved for the loan financing. Within these independent audits, the documentation on the performed construction activities is reviewed and visits on site are included in order for RSK Ltd. to monitor whether the implementation of all activities meets the set environmental and social standards. Currently, all inspections have been passed successfully by the project company, without any serious violations or deviations from the norms. After the commissioning of the gas pipeline, two more similar audits are planned.
For more information:
Action Global Communications Bulgaria
+359 885 074 422
+359 885 614 131