THE Asian Development Bank is to provide Indonesia a $75-million loan to aid the construction of a natural gas pipeline from South Sumatra province to West Java province. “The ADB will also support loans of up to $125 million to PT Perusahaan Gas Negara (PGN) provided by other international financial institutions and commercial banks,” an ADB statement said, without elaborating
. The planned 661-km pipeline is one of two that state-owned PGN is building to alleviate a gas shortage in West Java province.
The ADB is part of a consortium led by BP that signed an agreement in August with international lenders including Japan Bank for International Cooperation, BNP Paribas, and Standard Chartered for 15-year loans totalling $2.61 billion for the Tangguh LNG facility. The loans reflect the multilateral lender's mandate to support Indonesia's economic growth through the development of environmentally-friendly energy projects.