WB and ADB to provide $400m for Kalimantan-E. Java gas pipeline

State-owned gas distribution company PT Perusahaan Gas Negara (PGN) will hold an international workshop in January next year to further discuss the company's plan to develop an inter island gas pipeline project linking East Kalimantan and East Java, Investor reported on Tuesday.

The workshop, the second held for the project, will also involve multi-national financial agencies such as World Bank and the Asian Development Bank which have expressed their a strong support for the development of the inter island pipeline project.

PGN's director for business development, Adil Abas, said that WB and ADB had agreed to provide between US$400 million and $500 million for the project that would totally cost about $1.1 billion.

He said that PGN would use its own fund of about $350 million for the project while the remaining funds would be provided by a consortium.

At present PGN is completing a feasibility study for the project. The feasibility study costs the company about $650,000. (*)