As part of the talks, a delegation led by Yang Yi Xin, Sinohydro Corporation's vice president, met Uganda's President Yoweri Museveni on Monday, a statement from Museveni's office said late on Monday.
The project will involve the construction of a 138-km (85.75 miles) high-voltage transmission line to take power to South Sudan, the expansion of two substations and construction of one new one, the statement said.
"We are very much willing to help develop this project with the required finance if needed," Xin was quoted as telling the president.
Museveni expressed support for Sinohydro's offer to develop the project, the statement said.
In June last year the two countries signed a power sales agreement to allow Uganda to sell electricity to South Sudan.
The Chinese firm is completing a $1.5 billion, 600 megawatt hydropower project on River Nile in northern Uganda that is meant to be the source for the electricity exports to South Sudan.
