ISLAMABAD, May 21: The Asian Development Bank (ADB) has disclosed that it will finalize a consortium of international energy firms and financial institutions latest by December this year to start the construction of $3.5 billion Turkmenistan-Afghanistan-Pakistan (TAP) gas pipeline.

Sources in the petroleum ministry told Dawn that the ADB had provided this information to the three countries so that they could come up with their responses at the 5th tri-nation steering committee meeting of energy ministers on June 6-8 this year.

The ADB, said the sources, had been contacted by many financial institutions and energy firms showing their keen interest to become part of the proposed consortium.

The ADB would start serious discussions with some leading aspirants by the end of next month so that a feasibility study on routes and economics of the pipeline and formation of the consortium could be completed simultaneously. This would save a lot of time to start the project physically, the sources said.

India has also indicated to join the project provided that Ashkabad gives a guarantee that it will disconnect the whole system in case Islamabad disrupts supplies to New Delhi.

Petroleum Minister Naurez Shakoor and managing director of Sui Southern Gas Company Limited, Munawar B. Ahmad, will represent Pakistan in the meeting. Under an agreement, the three governments are required to meet quarterly at the ministerial level to review progress of the project.

The ADB also participates in these meetings as it is conducting a study on routes and finances of the TAP project and had proposed to invite India to join to make the plan profitable.

This led to a formal decision by the 4th steering committee meeting held in Islamabad in February to invite India to participate and followed a joint letter of invitation to India. Because of inclusion of New Delhi, the project cost has been estimated to increase from $2.4 billion to $3.5 billion.

Pakistan has no objection to the proposal and was ready to include a provision in the four-nation agreement to authorise Turkmenistan to disconnect its gas supplies.

The ADB had indicated recently to develop a mega project of a gas pipeline network in South-Asia involving Pakistan, Turkmenistan, Afghanistan, Iran and India that could involve all the three gas options Pakistan was currently keeping open.

The trans-Afghanistan Turkmen pipeline promises substantial amounts of royalty and

security fees to war-torn Afghanistan, long-term guaranteed gas supplies to Pakistan and gas sales revenues to Turkmenistan, besides chain generation of economic activity in the region.