The city of London signed an agreement with Venezuela here Tuesday to import cut-price petrol for its buses in return for offering its expertise on protecting the environment. The deal is aimed at benefiting Londoners on welfare payments, such as single parents and carers. In 2005, Venezuela signed deals with New York and Boston to provide cheaper heating oil for poorer city dwellers during winter.
Under the deal here, state-run Petroleos de Venezuela Europa will sell oil at a 20-percent reduction to allow the London authorities to grant discounts of 50 percent for up to 250,000 London bus and tram users from July.
"This agreement will benefit up to a quarter of a million of the lowest income Londoners," Livingstone said.
"Those on income support will be eligible to receive half price bus and tram travel — a benefit worth at least 280 pounds (550 dollars, 420 euros) a year," Livingstone said.
The British capital will save about 16 million pounds out of the 100 million pounds that it spends annually to fuel its 8,000 buses.
In exchange, the Greater London Authority will dispatch to Venezuela experts in recycling, waste management, traffic planning and reducing carbon dioxide emissions blamed for global warming.
An office will be opened in the Venezuelan capital Caracas and staff will be seconded for weeks or even months.
The deal was signed Tuesday by London Mayor Ken Livingstone, Venezuela's Foreign Minister Nicolas Maduro and an executive from Petroleos de Venezuela, Alejandro Granado.
Maduro said: "This agreement will strengthen relationships between the peoples of London and Venezuela and is a win-win strategy."
Granado added: "Venezuela is very rich in resources while London has great expertise in successfully managing the infrastructure services that characterise a modern city.
"It is therefore very fitting that this cooperative initiative focuses on these two areas."
Proposed by Venezuelan President Hugo Chavez during a visit to London in May 2005, critics in both countries accused Venezuela of bartering its main resource to one of the world's richest cities.
Livingstone said Tuesday it had been an "incredibly generous offer" from Chavez which would help both countries.
Venezuela, he added, will benefit from more than 100 years of London's experience in managing traffic and protecting the environment.
Venezuela, a member of the Organisation of Petroleum Exporting Countries and the fifth biggest producer in the world, produces more than three million barrels of oil per day, with half exported to the United States.
Source: Agence France-Presse
