Sao Tome and Principe government has signed a memorandum of understanding with China to an $800m deepsea port in the African island country.

China’s state-owned China Harbour Engineering Company will invest at least $120m in the project and will be responsible for the engineering, design and construction of the port.

According to a government statement, the first phase of the port will be completed by 2018 and will start operations in 2019.

China set up a trade mission in Sao Tome and Principe in 2013, primarily for the port project. The island nation lies in the middle of the oil-rich Gulf of Guinea.

China ended diplomatic relations with Sao Tome and Principe in 1997 after the country established diplomatic relations with Taiwan.