Chinese state-owned power firm China Three Gorges signed on Tuesday a concession agreement with the Government of Brazil for the right to run two hydropower plants in the South American nation, Brazilian news agency Brasil reported.

The signing comes after the firm confirmed in November it would pay the Brazilian Government 13.8 billion reais (US$3.7 billion) to take control of the Jupiá and Ilha Solteira dams, under a 30-year operating contract. The hydropower plants have a combined power output capacity of 5,000 megawatts.

The President of China Three Gorges, Lu Chun, said – as quoted by the media outlet – the signing of the contract represented an important moment in Sino-Brazilian co-operation.

“We will fulfil all the articles in the concession contract and work responsibly to give back to society,” Mr Lu said.

Brazil’s Ministry of Mines and Energy on Tuesday signed the concession contracts regarding a total of 29 hydropower plants that had been offered in auction for management by outside parties. Revenues gathered by the Brazilian Government through those contracts totalled 17 billion reais, news agency Brasil reported.

The two dams assigned to China Three Gorges under the deal were the largest in the group, the report noted. The news agency added China Three Gorges would become the first foreign company independently to run a hydropower station in Brazil.