PGN, WB in talks about loan for Java pipeline project
Monday, September 15 2003 - 08:14 AM WIB
State gas transmission and distribution firm PGN and the World Bank are in talks about the latter?s plan to provide US$86 million in loan for the construction of gas distribution pipelines on Java island, PGN president director WMP Simandjuntak said Monday.
The government has approved PGN?s plan to seek World Bank loans for the pipeline project, Simandjuntak told reporters.
Simandjuntak said the loan being negotiated with the World Bank was a semi-commercial loan with an annual interest of 6.7 percent and a 20-year grace period.
PGN had planned to build gas transmission pipelines from South Sumatra to West Java and from East Kalimantan to East Java. (godang)