A subsidiary of state-owned Power Construction Corp. of China (Power China) has agreed to build housing for the resettlement of people in southern Mozambique displaced by improvements to the power supply there carried out by Electricidade de Moçambique (EDM).

Power China announced in writing this week that it has two agreements with EDM which will entail the subsidiary, Sinohydro Bureau 11 Co. Ltd, spending eight months building 59 homes in the districts of Magude, Manhica and Marracuene, along with roads, water and electricity infrastructure, and facilities for education and healthcare.

Power China says the homes are for people displaced by work on the grid meant to improve the supply of electricity in the south of the country.

The work will be the first done by Sinohydro Bureau 11 for EDM, and may lead to more contracts in future, Power China says.