The Canadian government signed a cooperation pact with a Shanghai local real estate company yesterday to build several wooden-framed houses in Nanhui District, in an attempt to boost sales of Canadian lumber in China.

Canada's Consul General, Robert Mackenzie, hosted a ceremony to launch the partnership yesterday at Shanghai Gubei Sheshan International Villa in Qingpu District where four wooden-framed houses have already been constructed.

He said the program, known as the "Super E" initiative, is a good solution to some of the problems facing China's housing sector. Super E refers to houses that are energy-efficient, economical and environmentally responsible.

"Given the rising cost of energy and the need for environmental responsibility, the Super E healthy housing system is an innovative solution to China's housing needs," Mackenzie said.

According to the deal, the Canada Mortgage and Housing Corporation will provide technical support to China Enterprise, the local real estate developer, so it can build some 15,000 square meters of wooden-framed houses in Hangtou Town over the next few years. The project is expected to cost more than 1 billion yuan (US$120 million).