President Rupiah Banda has said that the government intends to put up an ethanol plant in eastern province to reduce the cost of imported oil in the country.
And President Banda says his government will in 2011 extend the Chipata /Mchinji railway to Katete district.
Mr. Banda said his government will increase sugarcane production which will facilitate the production of ethanol oil in the country.
The President observed that Zambia is spending a lot of money on imported oil saying the construction of ethanol plants will enable the country to produce oil.
He stated that it is for this reason that he went to Brazil to learn how ethanol can be used for oil production, among other issues.
He stated that this will also lead to an increase in the levels of employment among people who will work on both sugar and ethanol plants.
And President Banda says his government will next year extend the Chipata /Mchinji railway to Katete district.
He said that government will allocate local resources to extend the railway line to the district before it seeks the international donor community for financial support to further extend the railway line to Lusaka via Petauke.