China State Grid Corp, the country's largest grid operator and power distributor, signed a $1.31 billion power transmission agreement with Venezuela's National Electric Corp, marking the largest power transmission deal to be signed between the two countries, according to a statement on the State Grid's website.

The deal, which was signed last week in Venezuela, is also the first overseas EPC grid project for the State Grid, which is moving toward global expansion.

The project calls for building power transmission equipment in the capital city and a western city, which will significantly boost Venezuela's transmission capacity and reliability, the statement said.