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European funding for the expansion of the Balkan gas pipeline

08 March 2010 / 10:03:02  GRReporter
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The European Union approved 43 new programs for the improvement and construction of cross-border gas pipeline and electricity infrastructure in Europe. Twelve of the projects include the building of a network for transmission of electricity, with a budget of around €910 million. Other €1.39 billion were provided for 31 projects for construction of new modern network of pipelines, some of which are projects in the Balkans. In the following eighteen months €2.3 billion will be allocated for investment of new approved programs. 

The projects for the construction of an additional pipeline from Greece to Bulgaria and from Romania to Bulgaria will be funded. Subsidy is provided for the Greek-Turkish-Italian project “Poseidon”, which will transport natural gas from the Caspian Sea and Middle East to Europe via Turkey. Funding will be made within the European development program and its main aim is to ensure energy independence and economic boom in the EU. The approved programs are projects where the risk of delay in project implementation is high. European subsidies are provided to finance up to 50% of the cost of most programs, through which €22 billion private investments in the energy field are expected to be mobilized. 

"These investments will help increase employment and ensure the survival of many small and medium businesses in the construction sector," said European Commission representatives. The new projects will be made in order to diversify the risk and the negative effect of a possible problems in the supply of natural gas from one source, will be reduced. "We learned our lesson from the last gas crisis, which became the main reason for our decision to issue financial support for major energy projects in Europe," said European Commission President Jose Manuel Barroso. 

Tags: Jose Manuel Barroso EU gas pipeline Greece Bulgaria Turkey
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