Zambia launched on Saturday the construction of a China-aided major hydro-power project, which will go a long way in boosting the country's electricity generation capacity.

The launch came after the signing of a memorandum of understanding by the two governments for the commencement works on the development of the 750 megawatt Kafue Gorge Lower Hydro-power project last month.

The hydro power plant, to be situated in southern Zambia's Chikankata district, about 90 kilometers from Lusaka, the country's capital, will become the third-largest power plant and the first major investment in the country's energy infrastructure in 40 years.

The $2 billion project will be constructed by China's State-owned Sino Hydro Corp.

Zambian President Edgar Lungu said during the launch that his government will provide 15 percent of the project cost equity funding while the contractor will assist in arranging 85 percent of the total project cost as debt financing from the China Exim Bank and Industrial and Commercial Bank of China.

The Zambian leader noted that the project comes at a crucial time when the country is facing a power deficit.

Lungu also said that it is one of the fast-tracked interventions he has directed to ensure that the country gets out of the power deficit.

The project is expected to be completed in four years and about 5,000 jobs will be created during the construction period.

The Zambian leader has since congratulated the Chinese firm for  winning the tender to build the power plant.

On his part, Sino Hydro Chairman Song Dongsheng thanked the Zambian government for the trust in his company, adding that the company is engaged in various infrastructure projects in Zambia.

He said the company signed a cooperation agreement with the Zambian government in 2003 for various power projects including the Kafue Gorge Lower project.

Yang Youming, the Chinese ambassador to Zambia, urged the company to complete the project within the stipulated period and provide a good service, noting that the launch of the construction works of the projects signals the growing relationship between the two countries.