Cains, the Isle of Man-based law and professional services group, has acted for Asian Development Bank (ADB) in incorporating an Isle of Man company which will build, own and operate the planned 1,800 kilometre Turkmenistan-Afghanistan-Pakistan-India (TAPI) natural gas pipeline. ADB is the transaction advisor to the TAPI state gas companies, each of which own equal shares of the Isle of Man company.
The TAPI pipeline will export up to 33 billion cubic meters of natural gas a year from Turkmenistan over 30 years. Turkmengas will provide a key new source of fuel for southern Afghanistan, Pakistan and northern India. The project has received widespread international support including from the governments of the United States and the United Kingdom.
Klaus Gerhaeusser, Director General of ADB’s Central and West Asia Department commented: “Establishment of the TAPI pipeline company is a key milestone in the development of the pipeline. It is a tangible sign of transformational cooperation among the parties that presages the enhanced security, business projects, and overall peace and stability in the region promised by the pipeline.”
ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth and regional integration. It was established in 1966 and is owned by 67 members, 48 from the region.
ADB was appointed as transaction advisor for the TAPI pipeline project in November 2013. In that role, ADB advised on the establishment of the company as an integral part of the larger goal of identifying and selecting a commercial consortium leader to spearhead the construction and operation of the pipeline.
Chief Minister Allan Bell MHK said: “We are delighted that the Isle of Man has been able to play a supporting role in a project which has major geopoliticial significance. Spanning a region which has suffered from political and economic tensions, the pipeline represents an opportunity to improve further relations between the participating states.”