Gezhouba Group secures $4.7b hydropower contracts

China Gezhouba Group Co Ltd, one of China's largest hydropower providers, secured contracts to build two hydropower stations in Argentina worth $4.7 billion, the company said on Friday.

According to the company's earlier filing to the Shanghai Stock Exchange, they are EPC projects, or engineering, procurement and construction projects, a common form of contracting in the construction industry.

Its Argentine partner, Electroingenieria SA, will hold 40 percent of the shares with the remainder held by Gezhouba Group. The Chinese company will be responsible for the design and construction of the dam in Patagonia, and overseeing the operation for 15 years.

The dam construction sites are situated along the Santa Cruz River and their combined generating capacity will reach 1,740 megawatts after six years.

To secure the contracts, the Argentine government will apply for loans and financing from China's banks.