A consortium of Chinese state-owned companies Power Construction Corp. of China Ltd and China Longyuan Power Group Corp. Ltd is in the running to build a hydroelectric power station on the Zambezi River, AIM says.

They are among eight bidders to take part in the Mphanda Nkuwa project to build a new power station about 60 km downstream from the Cahora Bassa hydroelectric plant, the Mozambican news agency reported on Monday.

The report, citing a written statement issued by the Mphanda Nkuwa Implementation Office, says the winning bidder will get a contract with the Mozambican state electricity company, EDM, and the operator of the Cahora Bassa plant, HCB.

The report says the facility will be able to generate 1,500 MW of electricity.

Construction is expected to begin in 2024, take at least seven years, and cost about US$5 billion, AIM says.