Fiji's Minister for Lands and Mineral Resources Netani Sukanaivalu on Thursday formalized a 99- year lease agreement for a Chinese cement factory to be set up in Veisari Lami outside Suva.

Sukanaivalu told local media that the Tengy Cement Company Limited was given consent by the state to secure the 99-year lease to build the country's second cement factory.

This move has been welcomed in the island nation as they anticipate a decrease in the price of cement for the construction of affordable homes, he said.

Tengy is one of the first Chinese companies to accept Fijian Prime Minister Commodore Voreqe Bainimarama's invitation to set up business in Fiji after several trips he made to China, it was reported.

Sukanaivalu said he was particularly pleased that the Fiji government has stood true to its commitment to facilitate the request from foreign investors in the shortest possible time and within reasonable cost.

Under the agreement, the new 40 million Fiji dollars (21.6 million US dollars) factory is expected to serve Fiji and the Pacific and reduce costs for home construction through competitive pricing of cement.

In August 2010, the state owned radio Fiji Broadcasting Commission reported that Tengy had been given permission by the Fiji government to conduct studies on the establishment of a wind power generation plant in Fiji.

The Tengy group of companies said they would provide environmental protection industries while investing in Fiji.

Source: Xinhua