Beicip-Franlab named as consultant of East Kalimantan-Java pipeline project
Thursday, March 3 2005 - 02:00 AM WIB
State owned gas distribution company Perusahaan Gas Negara (PGN) and the Asian Development Bank (ADB) have named French company Beicip-Franlab as the consultant for the construction of the East Kalimantan-Java pipeline project, Investor Daily reported on Thursday.
PGN?s president director WMP Simandjuntak said in Jakarta on Wednesday that ADB and Beicip-Franlab were still finalizing the agreement on the contract for the consulting works of the pipeline project.
?Hopefully, the contract can be signed soon,? he said, adding that the French company would then carry out a study on project preparatory technical assistance (PPTA) for about six months.
According to Simanjuntak, after completing the study of PPTA, Beicip-Franlab would analyze the implementation of the project including the supply and demand of the gas, the development of the gas pipeline and its environmental mpact.
The construction of the pipeline project, which will transmit gas from several gas fields in East Kalimantan to East Java and Bekasi, West Java will cost about US$ 1.9 billion to build. About 70 percent of the cost will be in the form of loans from ADB, the World Bank and several commercial banks, while the other 30 percent will be in the form of equity. (*)