Bakrie to go ahead with pipeline project
Friday, July 28 2006 - 12:58 AM WIB
PT Bakrie & Brothers has delivered a US$1.26 million performance bond to government as a guarantee that it will go ahead with its plan to build a 1,200 kilometer gas pipeline linking East Kalimantan and Central Java.
?The bond was handed over by Bakrie last Tuesday,? said downstream oil and gas regulatory agency, BPH Migas director Tubagus Haryono in Jakarta on Thursday.
Bakrie was recently awarded the sole right to build and operate the US$1.26 billion gas pipeline after it successfully underbid PT Perusahaan Negara (PGN) and PT Bharata Indonesia, another state-owned firm, The Jakarta Post reported on Friday.
Under the deal, Bakrie is required to pay a bond amounting to 0.1 percent of the total value of the project, or $1.26 million, as a guarantee that it will perform its side of the agreement. (*)