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there's no official documentation, but you should be able to get pretty far following the examples here:
<https://github.com/pulumi/templates>

Well I was trying that and noticed a few things 1 - it does not allow private repositories - with authentication

2 I cannot determine how to introduce new variables like ${PROJECT}

so that during init you are prompted for different questions

And this post threw me off as it made it sound like it was a default functionality <https://www.pulumi.com/blog/building-new-pulumi-projects-and-stacks-from-templates/>