The Asian Development Bank has opened bids for constructing the Turkmenistan-Afghanistan-Pakistan natural gas pipeline.
An advertisement placed in The Economist [May 3-9, 2003] by the ADB on behalf of the governments of the three countries involved invites parties to submit their expressions of interest.
According to the ADB, the pipeline will be 'designed, constructed, owned, operated, and maintained by a consortium led by an internationally reputed oil and gas company, or an association of companies'.
ADB will 'assist interested consortium members in mobilising finances, finalising agreements and bringing about the financial closure for the project'.
An ADB press release in April said the pipeline has the 'significant potential to improve stability and raise living standards in South and Central Asia'.
The project could not take off in the early 90s because of the instability in Afghanistan.
According to a central government official, a letter from the three nations invited India in April to participate in the 1,600 km pipeline project.
The $2.5 billion project is expected to take almost 30 billion cubic meters of natural gas every year from Dauletabad fields in southeast Turkmenistan. From there the pipeline will run into Herat and Kandahar [in Afghanistan] before entering Multan [Pakistan]. According to proposals, the pipeline could be extended to the Gwadar Port, which Pakistan is developing with Chinese assistance, where a gas liquefaction plant will be built. Another branch of the line could come to India, which is the largest energy consumer in the subcontinent.
According to some estimates, the project would be profitable only if supplies are made to India. But India is reluctant to join the project because of security concerns.
Already, another high-profile pipeline project from southern Iran to India through Pakistan is stuck because of security reasons.
Numerous efforts by Iran are yet to succeed, because India feels Pakistan may sabotage the pipeline during times of crisis.
Some in India want the pipeline to take the sea route, but that will be much more expensive.
There are many who feel the pipelines could bring peace and stability in the region. "When other countries are involved, Pakistan may not wish to soil its international image by harming the pipeline," an Indian official told rediff.com
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