Turkmenistan plans to implement a maritime transport development project, which involves the construction of three ships at the State Shipbuilding and Ship Repair Plant of the Balkans, located in the International Seaport of Turkmenbashi.
The aim of the project is to increase the capacity and efficiency of maritime transport operations through the port of Turkmenbashi on the Caspian Sea, which is part of the Europe-Caucasus-Asia transport corridor, as well as the development of domestic shipbuilding potential.
The project will also create employment opportunities, especially for young graduates, and contribute to environmental protection through the use of new technology engines.The total cost of the project is estimated at 150.25 million US dollars.
According to the official website of the State Bank for Foreign Economic Affairs of Turkmenistan, which is the official representative of the Government of Turkmenistan in the international capital market, funds from international financial structures - the Islamic Development Bank and the OPEC Fund for International Development (OPEC Fund) are attracted for the project.
The Board of Executive Directors of the Islamic Development Bank (IDB) at its 343rd meeting, held on December 18, 2021, approved the allocation of $90.15 million to finance a maritime transport development project in Turkmenistan.
The IDB will contribute through two funding methods. $90 million will be funded through an Installment Sale and $0.15 million through a Reverse Linkage Grant.It is expected that the total financing of the IDB will cover about 60% of the total cost of the project.
The regular session of the Board of Governors of the OPEC Fund for International Development, held on December 15, approved the allocation of 352 million US dollars for sustainable development operations and support for government projects in the developing countries of the world.
As part of the new financing of the Fund, a loan in the amount of 45 million US dollars is also provided for the project for the development of the marine fleet of Turkmenistan.
The loan will be about 30% of the project cost.The remaining amount of $15 million will be covered by the Government of Turkmenistan.In accordance with the documents signed by the President of Turkmenistan, Bank of External Economic Relationships of Turkmenistan will conclude agreements with the IDB and the OPEC Fund to finance the construction of two Ro-Ro vessels (for the transport of goods on a wheelbase and passengers) and one cargo vessel.
The agreements will also include activities for the operation of these vessels after their commissioning.