Nepal has revived a deal with a Chinese state-owned firm to construct a $2.5 billion hydroelectric plant, that had been scrapped by the previous government, officials said.
Prime Minister K P Oli’s governemnt last week decided to hand over the Budhi Gandaki Hydropower Project, to the China Gezhouba Group Corporation (CGGC), reversing the former Sher Bahadur Deuba government’s decision to develop the 1200 MW project with internal resources.
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A Nepal Cabinet meeting on Friday directed the Energy Ministry to initiate the process to award the project to the Chinese developer. As per the Cabinet decision, the ministry has been asked to hold talks with the Gezhouba, prepare a proposal, and strike a deal to execute the $2.5 billion reservoir project, the Kathmandu Post reported.
Following the government decision, the Energy Ministry will now invite the Chinese company for talks and prepare a draft of the memorandum of understanding (MoU) before signing it, according to multiple sources at the ministry.
