VIENNA, Oct. 22 (UPI) -- Nabucco Gas Pipeline International GmbH announced it entered into talks with European banks to determine the key financing parameters for its gas pipeline.
"Nabucco has started detailed discussions with the European Investment Bank and the European Bank for Reconstruction and Development and will soon also enter into a dialogue also with the International Finance Corporation," said Reinhard Mitschek, managing director of the Nabucco gas pipeline consortium.
The director explained the talks aim to determine the financing parameters for the project, adding the most important objective is to keep lenders informed about the environmental and social impact assessment of the project.
Nabucco will need a varied set of international lenders to back the $11.7 billion project, including capital from the six consortium partners.
"We expect that next year the scope of involvement of the individual lenders will become clear," said Mitschek.
The Nabucco gas pipeline will run for more than 2,000 miles from Turkey through Bulgaria, Romania and Hungary to Vienna.
Europe aims to break Russia's grip on the regional energy sector with Nabucco, though the project lacks firm commitments from potential alternative gas suppliers.