The government will hold 30% stake in the joint venture as well as earn 40% of profits over 25 years.
In addition, the government has agreed to pay $0.10 per kilowatt-hour of electricity produced by the power plant. The company expects to generate revenues of $50m from this deal.
The project is estimated to cost $325m, and take three years to complete.
Blackbird International technology inventor and director Shmuel Ovadia said: "Guinea-Bissau is a perfect location to introduce sea wave energy as a viable and profitable solution for rising energy needs by implementing our patented technology and is further testament to our unique and patented sea wave power generation technology and its worldwide demand."
The renewable project is said to serve Guinea-Bissau with a stable power supply.
