Kathmandu, August 29
China’s Three Gorges group, which is being courted by the government to build the 750 MW West Seti hydropower plant, has rejected a revised proposal to develop the project,
In a meeting between representatives of the group and Nepal Investment Board, Nepali officials said they were ready to reduce the installed capacity of the project to 620 MW and buy power from the project in US dollars. The Nepali side proposed that work on the project be started at the earliest.
But the Chinese group, which submitted a long list of demands to the Nepali government, rejected the proposal saying that its concerns related to the rehabilitation of settlements that will be affected by the project have not been addressed. Similarly, they said that without addressing this sticking point, the project is not financially viable.
China Three Gorges Group’s subsidiary CWE Investment Corporation and Nepal Investment board had reached an understanding in 2011 to develop the project. According to the original terms, the Rs 120 billion project will by jointly financed by the group (75%) and the Nepal Electricity Authority (25%).
During earlier rounds of negotiations, Three Gorges proposed that the project be downgraded to 600 MW. The Nepali side rejected the proposal for sometime, but later decided to agree.
The Chinese delegation has also met the Energy Minister and the Finance Minister to express its reservations related to the project.
