China Gezhouba Group has unveiled plans to construct a $1bn hydroelectric power plant in Indonesia's Sulawesi Selatan province.

Electricity generated by the plant will be supplied to PT Perusahaan Listrik Negara (PLN), following a power purchase agreement between the company and China Gezhouba.

The duration of the power supply contract is expected to last for 20 or 30 years.

Construction of the plant is scheduled to begin in 2012 and is expected to be complete by 2017, reports ChinaDaily.

Gezhouba will act as an independent power producer for the Indonesian hydro electric project, which is in conformance with the
nation’s plans to cut its carbon emissions by 26% by 2020.

China Gezhouba also signed a deal to build a coal-fired power plant in West Kalimantan.