Nepal, China to sign hydel project JV pact

Private firms from China and Nepal are expected to sign a joint venture (JV) pact to build hydroelectricity plants in the Himalayan Nation.

As per a media report, the pact will be signed during Nepal Prime Minister KP Sharma Oli's six-day official visit to China, starting June 19.

"The Prime Minister's (Oli) visit will push ahead Trans-Himalayan multi-dimensional connectivity from China to Nepal and executing past accords," Kathmandu Post quoted Foreign Minister Pradeep Gyawali as saying.

Oli has been invited to Beijing by the Premier of the State Council of the People's Republic of China, HE Li Keqiang.

Agreements will be signed on June 20 after delegation-level talks between both the leaders, including one on cross-border connectivity between the Nepal Electricity Authority and China's State Grid Company.

Energy and railway agreements would be key gains for Nepal during this visit.

The JV is planned in a way that it begins with the Lower Manang Marsyangdi Hydroelectric Project with an initial output of 100MW.

In the next five years, the project is estimated to add upto 1,000MW to Nepal's electricity grid with an investment of around USD 3 billion.

During Oli's previous visit to China, Nepal's Butwal Power Company Limited (BPC) had signed deals with three Chinese companies, including, Sichuan Provincial Investment Group (SCIG), Chengdu Xingcheng Investment Group (CXIG) (both state-owned) and Qing Yuan Consulting Co (QYEC) (private firm).

The signing of deals was to develop Marsyangdi cascade 1,000MW hydropower project, Gyawali said.

Other agreements to be signed during Oli's visit are survey of Kerung-Kathmandu railway and preparing its detailed project report (DPR) and construction of 'Nepal-China Friendly Bridge' at Tatopani, Sindhupalchok and Rasuwagadhi-Kerung, which was damaged by the 2015 earthquake.

China said it would finish the construction of the bridge by May 2019, Gyawali added.