Sinohydro, the Chinese state-owned hydropower engineering and construction company, has secured a $1.65bn contract from Uganda for the construction of a hydroelectricity project in the country.

As per the agreed terms, the company will construct 600MW Karuma hydroelectricity dam in northern Uganda.

The construction work on the project is slated to begin in July 2013, while the project is expected to become operational by 2018.

Meanwhile, Uganda had secured $500m in concessional funding from China for the hydroelectric project.

When completed, the Karuma hydroelectricity dam will be the largest electricity plant on the Nile River.

Sinohydro engages in the infrastructure construction, engineering and consultation, investment, and real estate businesses in China and internationally. It develops renewable energy projects, including hydro power, wind power, solar power, biomass power, and other alternative energy sources, as well as provides wind turbines.