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 project is seen as vital to Nepal’s effort to improve its energy capacity.
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.
The funds for the project 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.
CGGC will, according to the MoU, conduct additional studies and investigations on the project if required.The Chinese developer is also currently building 30-MW Chameliya Hydropower Project in the far west and 60-MW Upper Trishuli 3A Hydropower Project in the central region.