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House panel directs govt to scrap Budhi Gangadki contract with Chinese company

- Post Report, Kathmandu

Sep 25, 2017-The Agriculture and Water Resources Committee of the Legislature-Parliament on Monday directed the government to scrap its decision to award the contract to construct the Budhi Gandaki Hydroelectric Project to a Chinese company.

A meeting of the committee held in Singha Durbar this morning directed the government to scrap its decision to award the contract to China Gezhouba Group Corporation (CGGC) to build the 1,200 MW project under the engineering, procurement, construction and finance (EPCF) model of project development.

The Budhi Gandaki has been touted as a key project to resolve the perennial power crisis in the country.

The government has allocated a budget of Rs5.33 billion for the project’s development for this fiscal year.

A Cabinet meeting on May 23 had approved the Energy Ministry’s proposal in principle to let the Chinese company build the 1,200 MW project under the EPCF model of project development.

Earlier in March 2017 and 2018, Prime Minister Pushpa Kamal Dahal and his predecessor KP Sharma Oli had sought Chinese investment in national pride projects during their visits to the northern neighbour.

 

Published: 25-09-2017 14:24

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