Nepal's NPC urges government to interrogate Chinese firm

The National Planning Commission (NPC) of Nepal has urged the government to interrogate China Three Gorges International Corporation over the construction of the Paschim (West) Seti Hydro Power Project.

The meeting of the NPC, which commenced on Sunday, made the decision of seeking clarification from the company with a time period of 90 days regarding the construction of 750 MW hydropower plants.

"We have suggested the government to interrogate the company whether it will be able to complete the project or not. What has been the problem to expedite the construction along with the terms and conditions which the company wants to put forward," the Vice President of the National Planning Commission of Nepal Swarnim Wagle said.

"The decision over the breaking of the contract with the company will be decided after the formal think over by the commission after it receives the reply from the company with the time duration of three months," Wagle added.

The China Three Gorges Company, which has been delaying the construction over its dissatisfaction over the PPA, has been threatening to walk out of the construction.

The hydropower project, which is expected to be completed in an investment of 1.60 billion Nepali rupees, will have 65 percent investments from the CTGC, 25 percent from the National Electricity Authority (NEA) and the 10 percent investments from the locals as share, as per the plans made before.

The plan also has the provision that the company can sell off its 14 percent of its 65 percent share to the Nepali investors. But the CTGC has been showing dissatisfaction over the rate of purchasing the electricity per unit. Previously it had asked the NEA to review the rate but got a negative response.

If completed, the project can produce 3.33 billion units of electricity on yearly basis, the probability study of the project has shown.

The project covers the area of Doti, Dadeldhura, Baitadi, and Bajhang districts of Far Western Development Region of Nepal.