Under the terms of the deal, Sojitz will be responsible for the construction of the substation, which has to include a facility for controlling electricity supply in the event of an emergency.

Sojitz is expected to begin construction this year together with Japan AE Power Systems Corp. Once the facility is completed in 2006, it will be handed over to SEC.

Sojitz is the holding company created from the merger of Japanese trading firms Nichimen Corp and Nissho Iwai Corp.