Prime minister: Construction of IAP will improve economic cooperation in Western Balkans

Prime minister: Construction of IAP will improve economic cooperation in Western Balkans

Construction of the Ionian Adriatic Pipeline (IAP) and the overhaul of the railway infrastructure will improve the economic cooperation in the Western Balkans.

Report informs, Montenegro prime minister Dusko Markovic said during the Western Balkans Investment Summit.

Prime minister said that Montenegro considers the construction of the IAP and improvement of the railway infrastructure to be priority projects, as they are a prerequisite for the economic integration in the region and will facilitate the movement of people and cargo.

Notably, IAP is a proposed natural gas pipeline in Southeastern Europe that will stretch from Albania through Montenegro, and Bosnia and Herzegovina, to Split in Croatia. It will be connected with the Trans Adriatic Pipeline (TAP), under construction by a consortium that includes the State Oil Company of Azerbaijan Republic (SOCAR). IAP is planned to build 249 km in Croatia, 95 km in Montenegro and 167 km in Albania. The capacity of the pipeline is $ 5 billion cubic meters annually.

On February 15, an agreement was reached to establish a new company for project design of the Ionian-Adriatic Pipeline (IAP), which will be connected to the Southern Gas Corridor (SGC). Two documents have been signed in Baku between SOCAR and Albanian Albgaz, as well as gas distributing companies of Montenegro, Croatia and Albania on the design of new pipelines that will be connected to the Southern Gas Corridor. The signing ceremony took place during the 4th ministerial meeting within the framework of the Southern Gas Corridor Advisory Council. A letter of intent on the design of the Fier-Vlora pipeline was signed by the Executive Director of SOCAR Balkans, Adviser to the SOCAR President Murad Heydarov, and Director General of Albgaz, Genci Gjeci. SOCAR acts as a technical consultant in the project.