Mexico’s Federal Electricity Commission (CFE) has selected a consortium comprising a unit of China's Sinohydro subsidiary to build a 240MW hydroelectric power station in southern Mexico.

Under the $386.4m contract, the consortium will develop Chicoasen II hydro power plant to provide electricity for 537,000 homes in the southern state of Chiapas, reports Reuters.

The consortium includes Sinohydro Costa Rica, Omega Construcciones, Desarrollos y Construcciones Urbanas and CAABSA Infraestructura.

The project is scheduled to be built in 42 months, the CFE said.

Owned by the Mexican government, CFE generates, distributes and markets electric power for almost 35.3 million customers.

CFE operates thermoelectric, hydroelectric, coal-fired, geothermal and wind powered plants and facilities, as well as one nuclear power plant.