PGN mulls loan from BNP Paribas
Tuesday, May 4 2004 - 02:41 AM WIB
State gas utility PT Perusahaaan Gas Negara (PGN) is exploring the possibility of getting a loan from BNP Paribas as an alternative to the issuance of bonds to help finance its gas pipeline project, the Investor Daily Indonesia newspaper reported in its Tuesday edition.
“Yes, still just exploring,” PGN’s commissioner Sumarno Surono said, when asked about the possibility of making bank borrowing.
He added that the company will decide after comparing the cost of the two alternatives.
PGN, according to Sumarno, still needs lot of money for the building of a 400-kilometer Duri–Dumai- Medan gas distribution pipeline.
“For gas distribution pipeline, which will be made of concrete so that it will not be rusted. This (concrete) will be imported from India,” Sumarno said.(*)