Money already spent, but that is not recoverable, is a sunk cost.
This will be repaid once first gas is produced at an interest rate of 7 percent.
Speaking after the signing of the Papua LNG Project Agreement, which defines the fiscal framework of the project, Prime Minister Peter O’Neill said an understanding has been has been reached with the JV partners for the deferment of the state ‘sunk cost’ for its equity in the project.
