Nepal has signed a deal with a Chinese company to develop a 1,200 megawatt hydroelectric project. Nepal’s Ministry of Energy yesterday signed a memorandum of understanding with China Gezhouba Group Corporation for the development of the 1,200-MW Budhigandaki Hydroelectric Project.
The agreement was signed at the prime minister’s residence, in the presence of outgoing Nepal Prime Minister Pushpa Kamal Dahal “Prachanda” and Chinese Ambassador to Nepal Yu Hong, The Kathmandu Post reported.
As per the agreement, the storage project would be built under engineering, procurement, construction and finance model. Under this model, CGGC will help arrange funds to develop the project. The funds will be mobilised in the form of soft loan or commercial loan from Chinese financial institutions on terms and conditions acceptable to the Nepal government.
1.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.
2.The Budhigandaki Project has been touted as a key project to resolve the perennial power crisis in Nepal.
3.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.