Chinese Government pledges loan for Ethanol Production Project

In September 2008, Chinese investors announced plans for an ethanol project in Fiji. Then, on February 28, 2008, during a visit to Fiji, a delegation of experts from Henan Tianguan Group Co. Ltd., assessed the feasibility of developing ethanol from cassava. The ethanol production project was expected to involved a total investment of 40 million Fijian dollar, with 30,000 tons of cassava being processed a month, producing 50,000 tons of ethanol. The Government of Fiji hoped that the project would ease the pressure caused by the continued rise in international oil prices. On March 8, 2008, Fiji's Ambassador to China, Sir James Ah Koy signed a memorandum of understanding with the visiting Chinese delegation on producing ethanol from cassava. Then, on September 22, 2008, Liangci Sugar Manufacture Company Limited of Guangxi State Farms announced a planned FJ63.6 million ($39 million) ethanol processing plant. According to the USCC and the Research Centre of the Pacific Island Countries, this project was going to be funded with a concessional loan from the Chinese Government (with a 20 year maturity, 5 year grace period, and 2 percent interest rate). However, the development of this project reportedly stalled due to domestic concerns over cassava use.

Number of official sources

3

Number of total sources

15