Govt needs US$190 million for "Blue Sky" project

The government will need at least US$190 million to carry out the so called Blue Sky program, a project that will eliminate the use of leaded fuel and reduce pollution in the country's major cities, according to Minister of Mines and Energy Susilo Bambang Yudhoyono.

Speaking at a ceremony to mark the International Environment Day at the Suralaya power plant in Merak, West Java on Monday, the minister said that the government would seek either soft loans or commercial loans to finance the project which would be carried in stages until 2003.

"The government is committed to promoting the use of the unleaded fuel. President Abdurahaman Wahid has asked the mines and energy ministry and the office of the state minister for environment to carry out the project soon," the minister was quoted as saying by BRD reporter.

Bambang said that under the so called Blue Sky program, all state owned oil refineries would be encouraged to increase the production of the unleaded fuel but the implementation of the program would be carried in stages.

State owned oil company Pertamina's refinery plant in Cilacap might be the first refinery which would develop the unleaded fuel which will replace all the leaded fuel in the country's major cities, the minister said. (*)