It is not known at this stage whether the much awaited ethanol plant project in Fiji will commence soon.

The new ethanol project was revealed following a visit from a four man fact finding delegation from China led by Fiji's Ambassador to China Sir James Ah Koy last year.

The project is expected to create 700 to 800 jobs.

However, Bio-fuel Chief Engineer from the Ministry of Energy Vilimoni Vosarogo said the project has been put on hold by government due to the lack of finance.

This follows the diversion of the funds to flood rehabilitation in January this year.

He said the ministry is also awaiting the assistance from China.

The government needs about $17 million to set up the 65 mills in Vanua Levu.

Vosarogo said they have to start all over again to secure lease titles and locations of mills and awareness to farmers when the funding is secured.

He said the mills will be set up in Vanua Levu due to the tax incentives.

Fiji's Ambassador to China Sir James Ah Koy could not be reached for a comment.