Despite opposition from environmental groups, Trinidad and Tobago and China have signed a multimillion-dollar agreement for the construction of a smelter plant in La Brea.

China's ambassador to Trinidad and Tobago, Huang Xing, said that the China National Machinery and Equipment Import and Export Corporation, which is building the Alutrint Aluminium Smelter Complex, would hire as many locals as possible to construct the plant.

Construction of the first phase of the project is expected to start in June and be completed in 2011.

Phase one will be a smelter with a capacity to produce 250 tonnes of aluminium a year, while phase two will begin in June 2011 and be completed in September 2013.

The Chinese diplomat spoke at the signing of a framework agreement between the two countries for the provision of US$112 million, which represents the balance of a concessionary loan from China to this country for the construction of the smelter.

The agreement represented the final part of the financing for the project.

Some US$300 million has already been provided under a buyer's credit memorandum.

Demands for products

Energy Minister Conrad Enill said that despite a bleak global economic outlook for this year, there will be demands for energy products from Trinidad and Tobago.

"Once countries decide they want a better standard of living, this will create demand for our products," he said.

He said that revenue flows have been less than anticipated but the country has been able to withstand these challenges due to "tough decisions taken by Government over the years, which we did not have to take at the time".