YANGON, Myanmar, Sept.3 (AP) -- Myanmar has signed a US$45.8 million (€35.5 million) contract with a Chinese company to purchase equipment and power cables for the construction of the country's largest hydropower plant, a state-run newspaper reported Saturday.

Under the agreement, signed Friday, Myanmar will buy the material from the China National Heavy Machinery Corp. for sub power stations of the Yeywa hydropower project, the Myanma Ahlin newspaper said.

It was the fifth contract between Myanmar and several Chinese companies for the 790-megawatt Yeywa project, the country's largest. Yeywa is located in central Myanmar about 50 kilometers (30 miles) southeast of the country's second largest city of Mandalay.

Much of Myanmar faces power shortages because the country's electricity supply has not kept up with rising demand. Myanmar cannot afford to import large quantities of oil.