Nepal Signs Agreement for Mega Hydroprojects with Chinese Firm
Nepal has struck a major deal with China Gezhouba Group Corporation (CGGC) for developing a 1,200 MW Budhigandaki Hydroelectric Project, which will be the biggest hydro project in Nepal having the potential to resolve its perennial power crisis. The MoU was signed in the presence of outgoing Prime Minister of Nepal Pushpa Kamal Dahal ‘Prachanda’ and Chinese Ambassador to Nepal Yu Hong.
As per the agreement, the hydro 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. funds would be made available in the form of soft loan or commercial loan from Chinese financial institutions. The EPFC model which makes the contracting firm responsible for making all the arrangements including mobilisation of financial resources is considered to be one of the most effective models for development of infrastructure projects.
CGGC has been given the overall responsibility for executing the project. it will also conduct additional studies on and investigations into the project. A time period of one year has been allotted to conduct assessment of the hydropower project and arrange necessary funds for its development.
CGGC, at present is constructing a 30 MW Chameliya Hydropower Project in the far-west and 60 MW Upper Trishuli 3A Hydropower Project in Nepal.
Month: Current Affairs - June, 2017