Bolivia and China have signed a deal to build a 300-million-dollar communications satellite to be launched into space within three years, officials here said Tuesday.

Construction of the Tupac Katari satellite, named after an 18th century indigenous hero who fought Bolivia's Spanish colonizers, will be financed 85 percent with funds from China.

The agreement was signed on Monday by officials from the Bolivian Space Agency and the China Great Wall Industries Corporation (CGWIC), along with government officials from each country.

Once launched, the satellite is expected to greatly improve telecommunications in Bolivia, one of Latin America's poorest and least developed countries.