PGN secures $80 million World Bank loan to lay pipelines
Friday, February 10 2006 - 09:51 AM WIB
PT Perusahaan Gas Negara (PGN), Indonesia's gas utility, got an US$80 million loan from the World Bank, and plans to use the proceeds to lay pipelines to customers in the west of Java, Bloomberg reported.
The company will pay an interest of as much as 6 percent on the 20-year loan, W.M.P. Simandjuntak, president of PGN said in an interview in Jakarta on Friday.
PGN, 59 percent owned by the Indonesian government, is spending $1.1 billion to build pipelines to boost sales and benefit from rising prices. Customers such as state power utilityPT Perusahaan Listrik Negara are switching to natural gas from oil to cut costs after oil prices rose.
The pipelines will connect PGN's customers in the western part of Java island to the company's gas terminal in the area. (*)