Top > Business > 2007 > March > 2007-03-01

London and Caracas Sign Cooperation Agreement ? Cheep Fuel for Advice

London mayor, Ken Livingstone, signed an agreement, Tuesday, with Venezuela`s national oil company, PDVSA, to provide discount fuel for the city`s famous red buses in exchange for urban planning consultancy for Caracas, Venezuela`s capitol. Livingston met with Venezuelan President Hugo Chavez, in London, last year, to work out the agreement. Venezuela signed similar agreements with other cities in different countries, including the US. Critics are dubbing these agreements "oil diplomacy," saying they are manly designed to embarrass President Bush. Venezuela is the world`s fifth largest oil exporter.

``This is an incredibly generous offer by the president of Venezuela,`` Livingstone said gratefully at a new conference. ``This builds on work his government is doing across the world to tackle poverty.`` The deal will cut the price of fuel in London by 20%, which will be utilized to substantially reduce bus fare for London`s 250 thousand inhabitants on welfare. Individuals who qualify for the program will receive a 50% discount on bus fare.

``London will help us in a big, historic task, which is reorganizing the city of Caracas,`` Venezuelan Foreign Minister Nicolas Maduro said. ``Venezuela is living a social, political and economical revolution and we now want this revolution to have an impact in the urban quality of life.`` But not everyone applauded the agreement. ``Why does London, one of the richest capitals in the world, need to exploit a developing nation?`` Richard Barnes, a Conservative member of the London legislative assembly, criticized the deal in an e-mailed statement. ``This money would be better directed at the poor of Venezuela.``