A wind power plant, said to be the largest of its kind in Asia, will be built in Erenhot City, north China's Inner Mongolia Autonomous Region, to provide clean energy resources for the 2008 Beijing Olympic Games.

An agreement on constructing the project, which is designed to generate over 1 million kilowatts of electricity annually, was signed between Erenhot City and the Avalon Power Corporation of Canada in Beijing on Wednesday.

The Canadian company will invest 1.2 billion US dollars into the China Erenhot North America Wind Power Park, which covers 200 square kilometers.

Barry Hemsworth, chairman of the Canadian company, said the project was expected to be completed before the 2008 Beijing Olympic Games.

Erenhot, an important land port city, boasts rich wind resources and has 300 days, each year, with strong winds with a power of five meters per second.

The two sides are continuing their discussions on the starting date of the project.