"The government, through the Ministry of Energy and Hydraulics, has signed a memorandum of understanding with China Overseas Co Ltd for the development of the Sounda site," government spokesman Thierry Moungalla said at a press conference.
"We finally have the materialisation of this project - long awaited - to strengthen the supply of electricity production," he added.
He said that the dam to be built in the south of the country aims to produce 600 megawatts to 800 megawatts of electricity.
Moungalla, who is also the communication minister, said the work is due to be completed in June 2030.
The estimated cost of the project is around 8.5 billion euros ($9.4 billion), financed by China.
Beijing also financed in 2011 the building of the Imboulou hydroelectric dam north of the capital Brazzaville, which according to the US Energy Information Agency is currently the country's largest dam with a capacity of 120 MW.
Brazzaville and Pointe-Noire, the two major cities in Congo-Brazzaville suffer power cuts almost daily, with the minister blaming poor governance by the public operator managing the electricity.
China has already built three hydroelectric dams in the country since it gained independence in 1960 including the Imboulou dam, Moukoukoulou dam in the south and Liouesso dam in the north.
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