IN a bid to save money, the Fiji Electricity Authority has signed a memorandum of understanding with Fiji Sugar Corporation for the supply of electricity from the Labasa mill to the FEA grid.
Authority CEO Hasmukh Patel told this newspaper the MOU would be for the whole year.
"The MOU known as the power purchase agreement will result in FEA achieving a substantial reduction in fuel cost," Mr Patel said.
"The power supply is also being extended to Seaqaqa and Dreketi.
"We expect the ongoing rural electrification project in the Seaqaqa-Dreketi highway to be completed sometimes next month."
It was earlier reported that the contractors were working round-the-clock to complete the project.
Acting commissioner northern Alipate Bolalevu earlier said farms and villages between Seaqaqa and Nasarawaqa would benefit from the project.
The project cost is $14million which is shared between FEA and the government.
FSC executive chairman Abdul Khan said: "For our Labasa mill, FSC has signed a power purchase agreement with FEA which is a modification of the one that had been existing for a number of years".
Meanwhile, Mr Khan had earlier said they had begun discussions with the FEA on the sale of electricity from the Rarawai mill in Ba as plans to establish a cogeneration plant drew closer to being finalised.