Nepal awards the 1,200-MW Budhi Gandaki hydropower project
- China Gezhouba Group Company Limited
The Nepalese government has decided to award the contract to construct the Budhi Gandaki Hydroelectric Project to China Gezhouba Group Corporation (CGGC).
The country’s cabinet approved the Energy Ministry’s proposal in principle to allow CGGC build the 1,200 MW project under the engineering, procurement, construction and finance (EPCF) model, through which the company itself generates te required fund for the project.
The NPR200 billion (US$1.92 billion) Budhi Gandaki Hydroelectricity Project will be located on one of the country’s major Himalayan rivers. The project, which will affect more than 8,000 households, has already begun handing out compensation to thousands of people affected by the proposed 263-meter high dam.
According to sources, Chinese officials are committed to provide a soft loan via the Export Import Bank of China to the Chinese company to build the project.
The Budhi Gandaki has been touted as a key project to resolve the perennial power crisis in the country.
Energy Minister Janardan Sharma, said:
“As per the pact, CGGC will get a year to make an assessment of the hydropower project and arrange funds for its development,” said Sharma. “If the Chinese developer comes up with a proposal agreeable to us, we will sign another contract.”