ISLAMABAD(Daily Times)-- The Asian Development Bank (ADB) has assured Pakistan to provide financing for materializing the billion dollars Iran-Pakistan-India (IPI) gas pipeline project, well-placed sources in Petroleum Ministry told Daily Times on Monday.

ADB is also a sponsor of Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project. ADB has conveyed to Pakistan, besides sponsoring TAPI gas pipeline project, it is ready to provide financing for other major gas pipeline project too.
Source informed the country director of ADB in Pakistan, Peter L. Feden assured this to Federal Minister for Petroleum and Natural Resources, Khawaja Asif in a meeting on last Friday.
Pakistan will import 2.2 billion cubic feet gas per day from Iran that will be shared by India if it joins the project.
ADB country director said, “Pakistan is the second country, after India, for which ADB is contributing for the development projects and that normal contribution of ADB for Pakistan stands at $1.5 billion.”
The cost of the IPI gas pipeline has been estimated over $7 billion, whereas TAPI gas pipeline project is estimated around $6 billion to $7 billion.
“Government of Pakistan, after signing IPI gas pipeline deal with Iran, will prepare the feasibility report of the project and financial plan would be chalked out to seek financing from international financial institutions, ADB may be the main contributor in this regard,” sources said.
Pakistan and Iran have finalised the draft of Gas Sales Purchase Agreement (GSPA) on IPI gas pipeline deal that is ready to be signed between two sides. The draft of GSAP on IPI had been finalised during the round of talks between Iran and Pakistan here in Islamabad, but it has not been signed so far. Sources said that Iranian President would visit Pakistan on 28 April and progress would be made on the project.
Sources said that Indian Minister for oil, Murli Deora, would arrive Islamabad on Tuesday evening to attend the meeting of steering committee on TAPI gas pipeline deal.
The meeting will start on 23 April and conclude on 24 April and will be attended by all petroleum ministers. After participating in the steering committee meeting, Indian Minister for oil will also discuss IPI gas pipeline with Pakistan on 25 April.
Sources said that India has formally joined the TAPI gas pipeline project, as earlier it has been attending the meeting of steering committee on TAPI as an observer, now it will participate as the fourth stake holder.
Two-day technical level talks on the TAPI started in Islamabad on Monday to discuss technical issues of the project. Pakistan would import 3.2 billion cubic feet gas from Turkmenistan, which would be shared by Pakistan and India.
Turkmenistan claims to have gas reserves of 159 trillion cubic feet from its Dauletabad fields and sources said that progress would be made on the project after Turkmenistan presents certification about the gas reserves.
Sources said Turkmenistan has failed so far to present the report about the gas reserves and is expected to present the report during the meeting of steering committee on TAPI.
Sources said during the technical level talks, Pakistan will be represented by secretary petroleum, Farrukh Qayum, and experts will discuss technical issues including the structure of gas pipeline, gas pricing formula and other modalities of the project.
Turkmenistan, Uzbekistan and Russia have also signed an agreement about the gas project and China is also importing gas from Turkmenistan. ADB is sponsoring the proposed TAPI project and it is expected that the pipeline would be completed by 2011-12.