President Hugo Chavez Frias has pledged to build thousands of plastic homes for Venezuela poor after viewing a prototype building during the re-constitution of the Venezuelan Petrochemical Corporation (PEQUIVEN) which will operate independently in western Zulia State from Petroleos de Venezuela (PDVSA).

Pequiven is to increase production of plastics and fertilizers.  Chavez Frias says "we are going to turn Venezuela into a petrochemical power ... from today, Pequiven is independent."

• A model home built with plastic walls at the Zulia Petrochemical plant is seen as an economic solution to Venezuela's critical housing shortage ... the President says that plastic homes will cost some 35% less than those constructed with traditional cinderblock.

Government officials have signed a series of  project agreements on petrochemicals including an initial order to produce 1,300 plastic homes in what remains of 2005 and 30,000 next year.

Chavez Frias says that it is "shameful" for Venezuela to import fertilizers since it can produce all it needs ... companies already exporting Venezuelan fertilizers must understand that the priority will now be on meeting domestic needs.  He says that any concern over contracts signed with previous governments can be settled in the courts but that Venezuela will prioritize domestic sourcing and production than exporting raw materials ... "Venezuela will never again be anyone's colony!"

Chavez defends recent moves to increase taxes and royalties on foreign oil companies saying "we are defending our national interests" ... he adds that the equivalent of $10 billion in investments is needed for petrochemical projects, and that it will be necessary to make use of some of the country's international reserves for that purpose.