The Chinese Government today signed an aid agreement with the Interim Government which will make way for the start of new projects together with aid money being diverted to improve rural infrastructure.

Interim Finance Minister Mahendra Chaudhry and China's Ambassador to Fiji, Cai Jinbiao this morning signed the aid agreement which was endorsed by the two Governments in April 2007.

Chaudhry said the funding will be mostly used to improve rural infrastructure and the money allocated to projects will have to be authorised by the two Governments.