KATHMANDU, Nov 6: Nepal government will seek Chinese assistance for constructing the transmission line for the 750-MW West Seti Hydro-power project in the Far Western region of the country, it was announced here after a meeting of the official Investment Board Nepal (IBN).
The meeting decided to simplify the procedures regarding the equity structure of the project, IBN board member Bhawani Rana said.
CWE Investment, a subsidiary of China Three Gorges Corporation (CTGC), has been awarded construction of the project and China agreed to provide a loan of $1.6 billion but the work has been delayed as the Chinese side has sought a clear policy on laying the transmission line and on rehabilitation and resettlement issues.
An agreement between the IBN and CWE Investment has assured 10 percent equity to the local population of the Far West Nepal, a media report said.
“The government will now request China for the assistance for the transmission line,” said IBN CEO Radesh Pant.
The CWE completed the technical evaluation of the project on March 8 and financial evaluation on July 30. “Now, the work will proceed ahead,” said Pant, eknatipur reported.
HYDEL POWER POTENTIAL
Nepal’s hydro-power sector has emerged as the magnet for foreign investors, accounting for 95 per cent of the investment flows into the country.
Investors don’t seem to be deterred from putting money in hydro-power projects despite limited access to financing and a long gestation period, the report says quoting government data.
As many as seven hydro-power ventures with a combined capacity of 362.11 MW have been registered with the Department of Industry (DoI) in the first two months of the current fiscal year.
These projects would bring in capital worth Nepalese Rupees 59.28 billion; it works out to 95 percent of the total investment commitments received during the period.
Kutheli Bukhari (998 KW), Rasuwa Bhote Koshi (97.5 MW), Tanahun (140 MW), Lower Likhu (28.1 MW), Upper Trishuli (75 MW) and Chandeshwori Mahadev Khola (8.52 MW) are among these projects.
These and some 55 other industrial proposals registered with the authorities, when implemented, will create 4,560 jobs.
A total of 97 enterprises had entered Nepal’s industrial sector during the first six months of the last fiscal year committing to generate 5,000 new jobs in the country. (UNI)
Trending Now
E-Paper
Follow our WhatsApp channel