TheNiger state govern ment has signed a memorandum of understanding (MOU) with a Chinese company for the establishment of Ethanol plant. Speaking at the signing ceremony today in Minna, the secretary to the state government, Mr Adams Erena, who represented the government said the project would gulp N11.6 billion (about $90m). He said the Chinese company would serve as a consultant to the project.

Erena said the company was expected to source 85 per cent of the project cost through a soft loan from the Chinese government on three per cent interest rate. He explained that the balance of 15 per cent would be sourced by the state government from local banks. The state government, he added, had already released N30 million to local cassava farmers to facilitate mass production of the commodity in the state, said the project when completed, would have the capacity of converting 150,000 metric tonnes of cassava into fuel energy.

He said the fuel energy would be sold at cheaper ra te for both local consumption and exports. He said that ethanol would be cheaper than petroleum products, and assured the Chinese partners of government's readiness to ensure that its part of the agreement was fulfilled.

Responding, the Managing Director of the company, Mr. Wang Qingxin, assured the state government that the project would be completed within two years from the date of the agreement. He said the signing of the agreement marked the beginning of more economic relationship between the Chinese government and Niger state, noting that the project would benefit the peoples of China and Nigeria. (NAN)