Burma's state-run newspaper says China has agreed to help the country build a hydroelectric dam on the Shweli River.

"The New Light of Myanmar" reports that the dam will be built southwest of Namhkam in Shan State and will produce a maximum of 600 megawatts of power.

The newspaper says the dam will distribute up to four billion kilowatt hours through the national power grid each year.

The head of Burma's hydropower department Aung Koe Shwe and the chairman of China's Yunnan Province United Power Development company Huang Guangming signed the agreement Saturday in Burma's new administrative capital, Naypyidaw.