The Fiji Electricity Authority has signed a multi million dollar deal with China's Sinohydro Corporation.
The Fiji Times reports the deal is worth 140 million US dollars and will go into the construction of another hydro-electricity dam.
The interim Prime Minister Commodore Frank Bainimarama says it is a major achievement for a small island nation.
He says Fiji should be proud that it is making an earnest effort to curb global warming.
Commodore Bainimarama said it is anticipated that this project alone will save the Electricity Authority 25 million US dollars a year in fuel costs.