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Description |
TA will finance the participation of consultants for 10th to 12th TWG meetings as well as hold separate buyers and sellers meeting, to resolve issues to finalize GSPA and integrate OA as part of the GSPA signing. The perceived risks of the TA are the (i) nonconformance of any of the governments to hold the meetings, (ii) change in governments' priorities, and (iii) insurgencies or external conflicts. However, the governments' active participation in the TWGs and steering committee meetings, coupled with exchange visits of top-level officials, reflect their commitment to developing a common approach to various bilateral and multilateral issues in realizing the project. |
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Project Rationale and Linkage to Country/Regional Strategy |
The governments of Turkmenistan, Afghanistan, Pakistan, and India have requested ADB to continue to provide legal counsel and support for negotiations and finalization of GSPA and Operational Agreement (OA) to meet the target date for signing the same in April 2011. As such, the 10th to 12th technical working group (TWG) meetings have been scheduled for February to March 2011 to expedite negotiations and formulate agreements which include, among others, (i) supply quantity, (ii) contract price, (iii) taxes, (iv) payment arrangements, (v) payment security, (vi) guarantees, (vii) dedication of gas reserves, (viii) maintenance, (ix) metering, and (x) insurance. |
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Impact |
Increased energy security in Afghanistan, India, and Pakistan; and enhanced energy market in Turkmenistan. |
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