The Red Cross Society of China said Wednesday it will provide 2.3 billion yuan (339 million U.S. dollars) for reconstruction work in quake-devastated Yushu, a region home mostly to Tibetans.

Some 1.8 billion yuan of the funds will be used to rebuild schools and hospitals while 300 million yuan will be used for the reconstruction of houses. The rest of the funds will be used for road, water and disaster prevention projects.

The society signed a memorandum on reconstruction with the Qinghai provincial government Wednesday.

The two sides have reached agreement on the building of 29 schools, 33 medical institutions and two disaster prevention centers.

The 7.1-magnitude quake that struck the region on April 14 this year left 2,698 people dead and 270 missing. The quake's epicenter was Yushu Tibetan Autonomous Prefecture.

China started reconstruction in Yushu earlier this month and plans to spend 31.7 billion yuan to complete the reconstruction over three years.