The document was signed by Honduran Finance Minister, William Chong Wong and Sinohydro Vice President, Son Dong Sheng in a ceremony attended by Honduran President Porfirio Lobo and other officials.

"I’m determined to promote these types of projects and make Honduras more open to all foreign investors who come and commit to our development,j" President Lobo said in a statement.

The Patuca river runs for some 500 km through Olancho and Gracias a Dios, which border Nicaragua, before flowing into the Caribbean Sea. Sinohydro will begin building the dams next year, and fund the project with loans from Chinese financial institutions.

Honduras currently has the capacity to produce 1,400 MW, around 60 percent of which comes from thermoelectric sources, according to the ENEE. Honduras’ largest hydroelectric power station is the 300 MW El Cajón, which has been in operation for the past 25 years, and is the largest in Central America.