The international consortium on the Nabucco gas transit pipeline has repudiated international media reports that the project will cost as much as EUR 12-15 B.

Nabucco Gas Pipeline International GmbH spokesperson Christian Dolezal has said in a statement that any figures different from official estimate of EUR 7.9 B are incorrect.

"The current amount of the investments for the construction of the Nabucco pipeline – EUR 7.9 B – is based on a technical project survey completed in 2005. These estimates are currently being reviewed. The results will be based on solid facts when they will be announced formally. Any other figures published in the meantime are speculative and not exact," Dolezal has declared.

The Nabucco consortium reaction comes in response to reports by Reuters citing unnamed Turkish sources that projected investment in the Nabucco gas pipeline has been revised up to EUR 12-15 B. According to the reports, some of the participants are unhappy with the stated amount, which may delay the final investment decision for Nabucco for 2012.

The Nabucco gas pipeline is supposed to reduce EU's energy dependence on Russia by bringing in natural gas from the Caspian region, Central Asia, and the Middle East.

The construction of the Nabucco gas transit pipeline will start in 2012, and the first natural gas deliveries through it should be a fact in 2015. From that, the direct investments in the Bulgarian economy from the construction of Nabucco will be about EUR 400 M and a few hundred jobs. Another about 1000 jobs will be created indirectly by the project.

The Nabucco shareholders are: Bulgarian Energy Holding (Bulgaria), Botas (Turkey), MOL (Hungary), OMV (Austria), RWE (Germany) and Transgaz (Romania), Each shareholder holds an equal share of 16.67% of Nabucco Gas Pipeline International GmbH. Nabucco is estimated to cost EUR 8 B, and Bulgaria, as a partner with 1/6 of the shares, will be expected to provide 1/6 of the total sum, or about EUR 1.3 B, rather than finance just the section on its territory. Bulgaria plans to finance its share in Nabucco with a EUR 1.2 B loan from the European Investment Bank.

Nabucco Gas Pipeline International GmbH, the Vienna-based project company, has been involved in talks with the European Bank for Reconstruction and Development, the European Investment Bank, and the International Finance Corporation, a member of the World Bank Group, asking for an EUR 4 B loan. These negotiations are expected to be completed in 2011.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!