Serbia’s government said on Thursday that it signed two agreements with Chinese companies that will enable new investments in the Serbian energy sector, with a total value of some 2.7 billion euro ($2.9 billion).

A 2.4 billion euro framework agreement was signed with China Energy International Group for the construction of a plant for processing of oil and oil derivatives in the northern city of Smederevo, the government said in a press release, according to SeeNews.

The new plant will produce oil derivatives in accordance with the highest technological, ecological and product quality standards of the EU. It will employ 700 people.

Serbia also signed a Memorandum of Understanding (MoU) with Hunan Rich Photovoltaic Science and Technology on investments in renewable energy sources.

The MoU envisages investment in a solar panel factory in the central city of Paracin and the construction of a solar photovoltaic (PV) power plant with a capacity of 200 MW. It is planned that Hunan Rich Photovoltaic Science and Technology will invest 30 million euro over three years in the PV panel factory that will employ 180 workers. Additionally, the Chinese company will invest 280 million euro in the construction of the solar power plant.