"This inauguration is the occasion to praise the excellence of the relations between Senegal and China," Wade said at the opening of the plant in the western city of Thies.

The construction was made possible by a Chinese loan of 11 billion CFA francs (16.7 million euros, 24.7 million dollars). The plant is a partnership between the Chinese firm King Long and Senegalese Senbus. King Long is taking over from Indian Tata Motors, which was in partnership with Senbus from 2005 until 2008 for the assembly of over 500 minibuses used to renew Dakar's public transport fleet.

Wade, who has been in power since 2000 and has already announced he will run again in the 2012 presidential elections, has ushered in a host of Chinese projects in Senegal like the construction of a new national theatre in Dakar by Chinese firm Complant.

The relations between Beijing and Dakar are relatively recent as they re-established diplomatic ties only in late 2005 after a 10-year hiatus due to Senegal's recognition of Taiwan.

Since 2005 China has announced a host of aid, loans and cooperation projects with the West African country.