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Indonesia looking at financial windfall from pipeline project

The Indonesian government stands to earn around US$11 billion over a period of 20 years by invest...

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The Indonesia media, quoting a recently released feasibility report, said that the project could bring in an estimated US$31.1 billion in total revenue. Thirty six percent of which will be the government's share, with investors receiving a 27% share of revenues. The remaining 37% will be used to cover investment costs.

Construction of the 1,780 km pipeline will be done by state gas distribution company PT Perusahaan Gas Negara (PGN) and should be completed by 2008. According to PGN president, Washington Mampe Parulian Simanjuntak, "With regard to the project, PGN will seek around US$1.2 billion in commercial loans, [with] the remaining US$500 million [coming] from PGN."

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