Indonesia's easternmost province Papua is expecting millions of U.S. dollars of investment in the airport and seaport from two Chinese companies after a preliminary agreement was signed last week, a report said Wednesday.

A memorandum of understanding on the investments was signed by Papua Governor Bas Suebu and representatives of the two companies during Suebu's visit to China last week.

Under the agreement, China National Property Administration Council and Qili Holdings will spend 130 million dollars in the first stage of the investment plan and another 800 million dollars in the second stage, reported English newspaper The Jakarta Post.

Suebu said the money would be used to improve facilities at airport and seaport in Biak regency, as part of a plan to turn the regency into the main center for trade, investment and tourism in Papua.

"The 130 million dollars will be channeled in the form of equity venture investment and the 800 million dollars in loans," the governor said.

Suebu said the money would be spent on improving existing facilities at both the airport and seaport in Biak. The seaport, for example, will be equipped with new equipment for processing fish and a container terminal for both domestic and international trade, he said.

"As part of the renovation project, the airport will be designed to accommodate wide-bodied airplanes from overseas," the governor said.

He added that the area around the airport would be developed in stages into a bonded zone with an export processing area.

The governor said representatives of the two Chinese companies were scheduled to visit Papua by the end of this month to make a survey at the location.

Source: Xinhua