The Angolan Government will sign a US$4.53-billion deal with a China-led consortium to build a new hydropower dam at Caculo Cabaça, according to an order signed by Angolan President José Eduardo dos Santos.

The location is in Kuanza Norte province, just east of the African country’s capital Luanda.

Portuguese news agency Lusa quoted from the presidential order – dated last month – under which Mr Santos authorised the Ministry of Energy and Water to sign the 489.6 billion kwanzas (US$4 billion) deal with the consortium led by China Gezhouba Group Company (CGGC).

“The fight against electricity deficit is a priority of the government; to promote the quality of life and the economic and social development of the country,” the dispatch said.

CGGC said in a press statement last month the deal would be worth as much as US$4.53 billion, with construction expected to take 80 months. The project includes a diversion channel and civil works, as well as the supply and installation of electromechanical equipment.

Lusa also reported the Angola Government would negotiate a loan with the Industrial and Commercial Bank of China for the project.

CGGC, a listed construction and engineering company based in China’s Hubei province, holds a 60-percent stake in the consortium, according to the company’s statement. Private firm Boreal Investments Ltd has a 37.5-percent stake, while a joint venture formed by CGGC and Portuguese firm Niara Holdings holds the rest.