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PetroChina to spend 800 mln yuan on an ethanol project in Sichuan

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BEIJING (XFN-ASIA) – PetroChina Co Ltd (SHA;601857;HK 0857), the country’s largest oil and gas producer, plans to invest 800 mln yuan to build a non-grain ethanol plant in Nanchong, in the southwestern province of Sichuan, its parent China National Petroleum Corp (CNPC) said.

The ethanol plant has a designed annual capacity of 100,000 tons, CNPC said in a statement.

It didn’t say when the plant would enter service.

In January, PetroChina signed a framework agreement with the State Forestry Administration to build a biomass base in Yunnan and Sichuan provinces.

The biomass base will grow plants that can be processed into 60,000 tons of biodiesel per year.
CNPC said it will spend 180 mln yuan on the biodiesel project, also located in Nanchong. It has been approved by the National Development and Reform Commission.

China’s non-grain ethanol output is expected to reach 10 mln tons in 2020 with non-grain biodiesel output hitting 2 mln tons, according to government plans.

( 1 usd = 7.4 yuan )
kelly.zang@xfn.com

xfnkz/xfjamesa
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Passport-free Schengen zone expands to 9 further European countries

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PRAGUE, TALLINN (Thomson Financial) – Europe’s passport-free Schengen zone expanded from 15 to 24 countries on Friday with the historic event marked by celebrations at a series of frontier posts across Central Europe. Estonia, Latvia and Lithuania halted land and sea border controls at midnight Thursday (2200 GMT), becoming the first in a wave of new members of Europe’s passport-free Schengen zone, officials said.
Border guard service and government officials in the three Baltic states told AFP that frontier checks had formally ended. The countries entered Schengen ahead of six other incoming member nations, thanks to their one-hour time difference.
In the Estonian capital Tallinn, authorities laid on a welcome for the first vessel to dock as the frontier fell, the Viking Line ferry Rosella which arrived at 11:45 pm (2145 GMT) after a three-hour journey from Helsinki, the capital of Finland which is an existing Schengen member state.
The disembarking passengers were serenaded by a seven-piece border guard as they stood patiently in line to show their passports to the grinning guards.
On the stroke of midnight, the guards left their booths and the gates were flung open, allowing the remaining waiting passengers to cross en masse.
The Estonian guards said they had mixed feelings about leaving their posts.
‘I’m sad. It’s a big change for me. But it’s a happy moment too,’ said Ursula Matt, who has worked at the port border post for 10 years, as she wiped away a tear.
Matt will lose her daily fix of sea air, because she is being transferred to Tallinn airport — where, as in other Schengen newcomer countries, checks will continue until March.
In Lithuania, the border service said checks had ended bang on time.
‘Border control has been abandoned. The roads are open,’ border service spokesman Giedrius Misutis told AFP.
The issue of timing had caused debate with Lithuania’s neighbour Poland, because of the two countries’ time-lag. Polish authorities in the end decided to operate ‘minimal controls’ for an hour on travellers crossing from Lithuania, before Poland officially joined Schengen.
On Lithuania’s border with Latvia, government officials cut a ribbon at a crossing post at midnight, and guards from both countries gave drivers gifts rather than scrutinising them.
In Latvia, Foreign Minister Maris Riekstins hailed his country’s accession to the Schengen zone.
‘This is a logical step for Latvia and other new EU member states towards further integration into the EU space,’ he said.
Membership of the now 24-country zone stretching from Norway to Portugal is particularly symbolic for the Baltic states, which were ruled by the Soviet Union from the end of World War II until they broke free from the crumbling communist bloc in 1991.
While citizens of communist countries such as Poland benefited from some freedom to travel — albeit tightly-controlled — most residents of the Baltic states had to obtain permission to travel even within their own country, and were rarely if ever allowed to go abroad.
People in Soviet-ruled Estonia, for example, faced special internal border checks when they went to the region’s Baltic Sea islands — in case they then tried to sail to freedom in Sweden or Finland.
The Baltic states were among the eight ex-communist countries which joined the European Union in 2004, ending the requirement for their citizens to obtain visas to visit western Europe.
Schengen membership is a bonus, since Baltic travellers — and European visitors to the three countries — will no longer have to show identity documents.
For Estonia and Finland, the end of maritime border controls is an extra boon.
Almost 9 mln people a year flit back and forth on ferries between Estonia and its neighbours, and while border checks are far from rigorous, they can be frustrating in the peak season.
‘For our passengers, it’s going to be easier. They won’t have to queue!’ said Monica Sutinen, a Finn who works on board the Rosella.
Schengen expansion will also ease the trip of ferry passengers who travel from Estonia to Germany, another existing member of the zone.
To date, passengers who began their journey in Tallinn had to disembark in Helsinki with their luggage in order to pass Schengen border controls, before getting back on the same ship to continue their journey to Germany.
The 1985 Schengen Agreement is an agreement among most Western and Central European countries which allows for the abolition of systematic border controls between the participating countries. By the Treaty of Amsterdam, the agreement itself and all decisions having been enacted on its basis had been implemented into the law of the European Union.
tf.TFN-Europe_newsdesk@thomson.com
afp/lam
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Booz Allen Hamilton may split company into business, public sector ops – report

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FRANKFURT (Thomson Financial) – US-based consultancy Booz Allen Hamilton will discuss today possible plans to split the company into business and public sector consulting, Financial Times Deutschland reported, citing company sources.

According to estimates, some three quarters of the company’s business come from public sector consulting, and a spin-off of the business consulting operations could help boost profitability, the newspaper said. Edit date and time

A spokeswoman for the company confirmed the company is mulling a move to split the company, but emphasised that the so called ‘operating council’s’ talks today are ‘purely theoretical’.
No decision will be made today, she said.

maria.sheahan@thomson.com

mas/sal

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Clear Channel files ‘anticompetitive’ complaint vs JCDecaux, Paris city – report

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PARIS (Thomson Financial) – Clear Channel’s French subsidiary has filed a complaint against JCDecaux and the city of Paris over ‘anti-competitive practices’ related to the Velib bicycle-hire venture, Les Echos reported.

The city of Paris has proposed extending the Velib scheme by installing 300 Velib stations and 4,500 bicycles in nearby suburbs, with an investment of 7 mln eur per year, the paper said.

US-based urban furniture and outdoor advertising group Clear Channel says Paris authorities’ plan to base these new contracts on the existing contract with JCDecaux would be in violation of public market rights and principles of competition as it would give
JCDecaux an advantage in winning the contracts.

Clear Channel also bid for the Paris Velib contract but was unsuccessful. The company has already tried unsuccessfully to overturn the award of the contract to JCDecaux.

JCDecaux operates Velib through a joint venture, in which Publicis holds 34 pct.

helen.beresford@thomson.com

hem/lam

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No Danish referendum on EU’s Lisbon treaty – prime minister

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COPENHAGEN (Thomson Financial) – Denmark will not hold any referendum on the EU’s Treaty of Lisbon on the EU constitution, but will ratify it through a parliamentary decision, the internet version of daily Jyllandsposten said, citing Prime Minister Anders Fogh Rasmussen.

Political parties ranging from the left-wing Enhedslisten to rightist Dansk Folkeparti have previously called for a referendum on the issue, but Fogh Rasmussen’s liberal party and the Social Democrats will have the necessary majority to ratify the treaty in parliament, the daily added.

gustav.sandstrom@thomson.com

gs/cmr

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Taiwan’s Taishin, Aegon ink contract for life insurance jv

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TAIPEI (XFN-ASIA) – Taishin Financial Holding Co Ltd (2888.TW) said it and Aegon Taiwan Holding BV have signed a contract to establish a life insurance joint venture pending regulatory approval.

Taishin will own 51 pct of the planned joint venture, while Aegon will hold 49 pct of the insurer, which is to be capitalized at 2 bln twd, the company said in a statement.

Taishin closed today’s trade up 0.05 twd or 0.36 pct at 13.80.

(1 usd = 32.20 twd)

adela.lin@afxasia.com

al/kmq

xfnal/xfnkm

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Alaska sues pension actuary for $1.8B

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JUNEAU, Alaska (AP) – The state of Alaska filed a multibillion dollar lawsuit against its former actuary Thursday, claiming the company’s mistakes contributed to Alaska’s $8.4 billion pension shortfall.

The lawsuit seeks more than $1.8 billion from Mercer (US) Inc., the former actuary for Alaska’s Public Employees’ Retirement System and Teachers’ Retirement System pension plans.

‘Just like any other professional, Mercer was required to use due care, skill and diligence in advising the state how to keep its retirement plans financially sound,’ Alaska Attorney General Talis Colberg said.

‘When it came to calculating expected health care costs for the plans, and in other areas, Mercer failed to meet those standards and caused a significant part of the current unfunded liability of the plans,’ Colberg said.

Messages left with Mercer after business hours Thursday were not immediately returned.

After 30 years advising the state on its public employee and teacher retirement systems, Mercer, a unit of Marsh & McLennan Cos., was replaced as the state’s actuary in 2005 by Buck Consultants, which did an extensive recalculation of Alaska’s pension and health care liabilities. Buck Consultants found that Mercer had underestimated medical costs by about 7 percent.

The state claims Mercer’s miscalculations on future medical costs led the state to develop an unfunded liability in the pension system.

That unfunded liability is the gap between the retirement systems’ total assets and the amount in benefits that would be required to pay all the people in the system. The shortfall would affect both the public employee and teacher retirement systems.

The state Department of Law has retained the law firms of Paul, Weiss, Rifkind, Wharton & Garrison LLP of New York City and Lessmeier & Winters LLC of Juneau to assist with the litigation.

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Porsche plans new paint-spray plant in Zuffenhausen for 200 mln eur

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STUTTGART (Thomson Financial) – Porsche AG said it plans to set up a new paint-spray system in Zuffenhausen and will invest around 200 mln eur in this.
Construction of the paint-spray plant will start in the autumn of 2008 and operations will begin in 2011.
The plant has capacity for a three-shift production schedule. Under a two-shift system, it can paint-spray 170 vehicles daily, the company said.

marilyn.gerlach@thomson.com
mog/cmr
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Grupo Rayet to invest 110 mln eur in consortium to build two hotels

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MADRID (Thomson Financial) – Grupo Rayet said its Unico Finest Hotel joint venture with Pau Gardens will invest 110 mln eur for the first two projects in the development and management of its first luxury hotels in Dubai and Buenos Aires.

In a statement, Rayet said it holds 40 pct of Unico as an investor, while Pau Guardians has 60 pct and will focus on the hotel chain’s development.

In the spring of this year, the companies signed an agreement to invest at least 350 mln eur to develop five hotels in the international market in five years.

Grupo Rayet’s unit Rayet Promocion is currently in the process of merging with Astroc Mediterraneo SA and Landscape.

tfn.europemadrid@thomson.com

ccs/tr/ajb

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Man sentenced for market PIN pad scam

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PROVIDENCE, R.I. (AP) – A California man has been sentenced to 5 1/2 years in prison for his role in a criminal ring that stole financial information from Stop & Shop customers and used it to illegally siphon $132,000 from shoppers.

Arutyun Shatarevyan, 20, of Los Angeles previously pleaded guilty to conspiracy and identity fraud. As an Armenian immigrant, he will probably face deportation, his defense attorney, Alex Kessel, said.

Shatarevyan and three other California men were arrested in Coventry on Feb. 26 as they attempted to perform the scheme at a supermarket check-out lane.

Investigators say the men would enter supermarkets late at night, distract the cashier and swap a PIN pad with an alternate machine that recorded each customer’s financial data. They could swap the equipment in as little as 12 seconds, prosecutors said.

After a while, the men would return, retrieve the machines and harvest the credit and debit card information. At least six supermarkets in Rhode Island and Massachusetts were targeted, and 238 people lost money.

One co-defendant, Mikael Stepanian, 28, had a laptop inside his hotel room that allowed him to create ATM cards using information downloaded from the PIN pad machines. He is scheduled to be sentenced on Dec. 6.

Two other defendants already have received prison terms for their role in the plot. Arman Ter-Esayan was sentenced to six years in federal prison, while Gevork Baltadjian was ordered to serve just over five years.

Stop & Shop is a unit of Royal Ahold.

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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