QUITO - Ecuador and China have signed an agreement of cooperation with a potential investment of US$ 1 billion, the Ecuadorian presidential office said on Wednesday.

The agreement was signed by Ecuador's National Secretary of Planning and Development (Senplades) and the Chinese company CAMC Engineering.

The projects will involve areas of grain storage, power generation and water conservancy projects, the office said in a statement.

Mateo Villalba, assistant secretary of Public Investment of Senplades, said the agreement favored the Ecuadorian manpower as the Chinese company had pledged to train local employees of the projects.

Villalba said the water conservancy project, when completed, would not only control floods in Vinces, Babahoyo and Guayaquil zones, but also improve farmland irrigation facilities in Los Rios province.

According to Alberto Briones, general manager of CAMC Engineering's Ecuador Branch, the signing of the agreement is just the beginning of cooperation between the Chinese company and the Ecuadorian government.