The agreement was signed between government and the Italian contractor, Salini Impregilo .
This will see the firm carrying out excavation works on the power house where the hydro-power plant will be installed.
The entire project will gobble about $20 million.
The plant will generate 15 megawatts of electricity to light up the whole of Masvingo.
Power generated at Tokwe-Mukosi Dam will be fed into the national grid to boost overall electricity output in the country.