State-owned China Energy Engineering Corp. says a subsidiary has agreed to do US$423 million worth of work on improving the water supply in Pemba city, the capital of Mozambique’s Cabo Delgado Pprovince.

Energy China told the Hong Kong Stock Exchange that the subsidiary would build a clay core concrete gravity dam across the Megaruma River, a 2 km channel to carry water diverted from the river, a hydro-electric power station, a water treatment plant, as well as rehabilitate an access road and a water conduit.

Representatives of Energy China, the National Directorate of Water Resources Management and the National Directorate of Water Supply and Sanitation of Mozambique signed an agreement to that effect on Wednesday during the 2019 Summit on Chinese Central SOEs Supporting Macao as Co-operation Platform between China and Portuguese-speaking Countries held in Macao, Energy China told the exchange.