Nepal has signed an agreement with a Chinese company to construct a 1,200 MW hydroelectric plant in the landlocked country, which is facing acute power shortage.
Energy Minister Janardan Sharma yesterday signed the agreement with the China Gezhouba Group Corporation (CGGC) to build the Budhi-Gandaki hydroelectric project, according to officials.
The project would be constructed at an estimated cost of USD 2.5 billion. A financing agreement will be signed later, an official in the ministry said.
The current Nepalese budget also specifies to generate 17,00 MW electricity to end power woes in the country.
Nepal has the potential to generate around 83,000 MW electricity through the utilisation of its water resources. So far, the country has utilised a little more than 1 per cent of its hydro-potential.
The demand for electricity has long outstripped supply in Nepal due to under-investment and inefficiencies in the power sector of the country.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)