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KIEV — China Machinery Engineering Corporation (CMEC) on Friday signed a contract with Ukraine"s largest private energy holding Donbas Fuel and Energy Company (DTEK) on building a solar power plant in Ukraine.

The agreement was signed in Kiev by Zhang Chun, chairman of the CMEC, and Maksym Timchenko, chairman of the DTEK, in the presence of Ukrainian Deputy Prime Minister Volodymyr Kistion and Ukrainian Energy and Coal Minister Igor Nasalyk.

Under the deal, the CMEC will build a solar power plant with a total capacity of generating 200 megawatts of electricity in Nikopol city in Ukraine"s central Dnipropetrovsk region.

Located on the 400 hectares of land, the Nikopol plant will be one of the largest solar power plants in Europe, providing electricity to more than 100,000 people.

While commenting on the project, Maksym Timchenko, chairman of the DTEK, said it will contribute to Ukraine"s economic prosperity and green development.

"This project will provide an opportunity to create new jobs and increase tax payments. It will also reduce CO2 emissions by more than 300,000 tons of CO2 annually," Timchenko said.

The estimated cost of the Nikopol solar power plant is 230 million euro (about $282 million). The project will be funded by the DTEK"s own funds and by a loan from the CMEC.

Zhang Chun, chairman of the CMEC, said that Ukraine is a promising market for renewable energy development, which holds a valuable place in the CMEC"s growth strategy.

"For us, the Ukrainian market is one of the most important among the ex-Soviet countries. It has a great capacity and favorable energy structure. It is a large market for new and renewable energy sources. In addition, the companies of the two countries can mutually complement each other," Zhang said.

The solar power plant is set to be built by the end of this year and put into operation in March 2019.

Currently, the DTEK is operating in 11 Ukrainian regions, supplying electricity to 3.3 million households and over 82,500 industrial companies.