China and North Korea have signed an agreement to build a hydroelectric dam on the Yalu river which borders the two nations, state media reported June 28. The deal was signed on Tuesday in Pyongyang between China's Changchuan Hydroelectric Power Co. Ltd. of Jilin province and North Korea's electric power and coal industry ministry.
China will fund the 350 million yuan (US$43.75 million) Wenyue Hydroelectric Project, while the infrastructure will be built in North Korea. The dam will have a capacity of 40,000 kilowatts although the electricity will be used in North Korea where power supplies are far more scarce.
Construction on the dam is expected to begin in September and will be completed in three years. The Chinese side will provide equipment for the dam.
Under the agreement the North Korean side will repay the investment on the dam to the Chinese side from proceeds from electricity sales.
Copyright Agence France-Presse, 2006