On 5 june 2017 The government has sealed a major deal with a Chinese company for development of a mega hydroelectric project, which could resolve perennial power crisis in the country and lay the groundwork to establish Nepal as an electricity exporter.The Ministry of Energy on Sunday signed a memorandum of understanding (MoU) with China Gezhouba Group Corporation (CGGC) for the development of much-touted 1,200MW Budhi gandaki Hydroelectric Project, the biggest hydro project set to be built in the country. The agreement was signed by Energy Minister Janardan Sharma and CGGC President Lv Zexiang on behalf of their organisations.The agreement was signed at the prime minister’s residence, in presence of Premier Puspa Kamal Dahal and Chinese Ambassador to Nepal Yu Hong. As per the agreement, the storage project would be built under engineering, procurement, construction and finance (EPCF) model. Under this model, CGGC will help arrange funds required to develop the project.CGGC is currently building 30-MW Chameliya Hydropower Project in the far west and 60-MW Upper Trishuli 3A Hydropower Project in the central region.The Budhigandaki Project has been touted as a key project to resolve the perennial power crisis in Nepal. The government has been raising infrastructure tax of Rs. 5 from sales of every litre of petrol, diesel and aviation fuel to collect funds for the project.