YICHANG -- The China Three Gorges Corp (CTGC), the operator of China's largest water control program, has signed a contract with the Mauritian government to build a water conservation project in the African island nation, sources with the company said on Oct 10.

The company will build a dam across the Terre Rouge River in Mauritius within three years, according to the sources.

The Bagatelle Dam will form a reservoir of 14.2 million cubic meters that will supply water for Port Louis, the country's capital city, and other downstream regions upon its completion.

Construction on the project involving $112 million is expected to start on Dec 1.

The project will be undertaken by the China International Water & Electric Corp (CIWEC), a wholly-owned subsidiary of CTGC.

The Export-Import Bank of China will provide soft loans to the project, which is the fifth one CIWEC has clinched since entering the Mauritian market, according to the company.

CTGC signed a contract with the government of Cameroon to build the 200-million-dollar Lom Pangar Hydropower Project in August.