KATHMANDU, May 24 -- The Nepali government has decided to award the contract of developing Budhigandaki Hydroelectric Project to China Gezhouba Group Corporation (CGGC), a cabinet minister has said.
A cabinet meeting of Nepal Tuesday approved the Energy Ministry's proposal to let the Chinese developer build the storage type project located at the country's central and western districts -- Gorkha and Dhading under engineering, procurement, construction and finance (EPCF) model of project development, according to Energy Minister Janardan Sharma.
Minister Sharma told Xinhua on Tuesday evening that the decision was taken to ensure that the country's important project is built in time.
While it is the government's decision in principle, there are a lot of steps to be taken before the decision is implemented. First of all, the Nepali government and the Chinese company will have to sign a Memorandum of Understanding (MoU) on the issue.
The Tuesday's cabinet meeting also approved the draft of MoU forwarded by the Energy Ministry which will be signed with the Chinese developer.
The MoU will pave the way for a further concrete agreement in the future, according to Nepali officials.
