The deal was signed by Nepal Energy Minister Janardan Sharma and Lv Zexiang, President of CGGC at the Prime Minister’s residence in Kathmandu on June 4. Prime Minister Puspa Kamal Dahal and Chinese Ambassador to Nepal Yu Hong were also present at the MoU signing ceremony.
The project will be constructed at an estimated cost of $ 2.5 billion. As per the agreement, the project would be built under engineering, procurement, construction and finance (EPCF) model. Under this model, CGGC will help arrange the funds required to develop the project.
The MoU has given CGGC one year to conduct assessment of the hydropower project and arrange necessary funds for its development.
According to Energy Ministry officials, the agreement will not bind the government legally or financially to hand over the project to the Chinese company for construction, as the final agreement has not been signed.
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