Makurdi — Benue State government and Bertuzzi of Italy have renegotiated the cost of Fruitcon Industry Katsina-Ala reducing it from N400 million to about N205 million, this saving the state about N180 million.

Worried that the cost of the project it inherited from second civilian governor of the state Rev. Fr. Moses Adasu, had risen astronomical due to accumulating interests and the downward slide of the Naira, the state government had called the contractor to consider freezing the growing interests.

At the end of negotiations Barrister Joe Abaagu, Benue State Commissioner for Commerce and Industries told THISDAY, "the cost which had gone up to N400 million" was reduced to "about N205 million."

To achieve this, interests that had accrued since 1992 when governor Moses Adasu started the project were frozen and other waivers were also considered.

Government, he added, also renegotiated on the basis of the Naira and not foreign currency since according to him the machines for the construction of the factory were already in the country.

Abaagu said already N20 million of the amount has been paid and described the feat as in line with the administrations' policy on prudent management of the state finances for optimum results.

The Commissioner also said the state government intends to capitalise the Federal Government ban on importation of fruit juice plans to establish two fruit juice companies in the state this year.

He said the market for the products is not only viable, "even at current level of production of fruits in the state we could sustain up to six Juice factories conveniently."

Already machinery for the fruit juice factory in Katsina -Ala had been imported by the Adasu administration, but was not paid for, while those for the other factory to be located in Makurdi has arrived the country.