LUSAKA, Oct. 17 (Xinhuanet) -- The Zambian government is expected to receive a group of investors from Middle East for talks on the possibility of setting up a second oil plant after its sole refinery was shut down weeks ago and the nationwide fuel shortage ensued is still choking its economy and daily life.

    Local newspaper Times of Zambia cited unnamed sources at the Cabinet Office Monday as saying the foreign investors were invited by parliament whip Vernon Mwaanga when he was in South Africa to negotiate the release of more locomotives to transport fuel to Zambia.

    The newspaper commented that the decision by the government to set up an alternative oil plant was "a very significant development whose move was long overdue," adding that the new plant would be a worthwhile investment as the country's economy has been expanding while motor vehicles population has been growing.

    With a second petroleum refinery, Zambia will have moved another step ahead especially with the continued quest to boost agriculture and tourism and other sectors, the paper said.

    And Commerce Minister Dipak Patel who is chairing the ministerial committee appointed to resolve the fuel crisis said the situation was improving as more tankers with imported fuel were arriving and the refinery has partly resumed production.

    The fuel situation at some mining companies, which were badly hit by the shortage and had to scale down production for lack of diesel, has also improved as they now have cover of oil between two and 17 days, according to the newspaper.

    This is the second fuel shortage experienced by the southern African country within half a year thanks to the technical problems which halted production in its sole refinery in Ndola, 300 km north to the capital Lusaka. Enditem