Mozambican government to present new investor for Massingir bio-fuels project

23 March 2010

Maputo, Mozambique, 23 Mar – The Mozambican government will soon present a new investor for the Massingir bio-fuels project in the southern province of Gaza, Prime Minister Aires Bonifacio Ali said on Monday in Maputo.

Ali did not disclose the name of the new investor.

Last January the government repudiated its contract with Procana, a company that wanted to produce sugar and ethanol in a project estimated at US$500 million.

The Council of Ministers spokesman, Luis Covane, stated at the time that the contract was cancelled because Procana failed to comply with its obligations and had only cleared 800 hectares of land out of a total of 30,000.

Projects to invest in bio-fuels began to take form shortly after the recent oil crisis.

One bio-fuels project deemed to be successful is being developed by Mozambique Principe Energic from Mauritius, which has invested US$400 million to produce ethanol at Sussundenga in the central province of Manica.

(macauhub)

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