According to company spokesperson Agus Diharjo, “PGN has issued bonds valued at US$275 million and plans to issue more bonds valued at US$400 million [and the] Japan Bank for International Cooperation (JBIC) has also pledged US$145 million in soft [loans].”
The three projects in Sumatra and Java are expected to cost PGN to the tune of US$1.29 billion. It has already put up US$200 million of its own capital for the projects.
In related news, Agus confirmed construction for the 449 km section of the South Sumatra – West Java (SSWJ) project, from Pagardewa and Cilegon, would commence as soon as the loan from JBIC is approved. He expects construction to begin sometime in the second half of this year.
“[We need] a final agreement on loans from the Japan International Bank for Cooperation before [we] can continue with [the] South Sumatra – West Java pipeline project [alone],” said Agus.
“The total cost for this section of the SSWJ project is estimated at US$495 million, of which the JBIC has pledged USS415 million. JBIC has also pledged to provide 60% of the equipment for the project,” added Agus.
The aim of the entire SSWJ project is to transport gas from PT Pertamina’s South Sumatra gas field to several areas in West Java. Work on Pagardewa-Cilegon pipeline and the SSWJ project as a whole is to be completed by 2006.
