Kathmandu, June 4

The government has signed a memorandum of understanding (MoU) with China Gezhouba Water & Power (Group) Co Ltd (CGGC) today to develop the 1,200-megawatt  Budhigandaki Hydropower Project.

Following the decision of the Cabinet on May 23 to develop the project on engineering, procurement, construction and finance (EPCF) model, the MoU was signed between Energy Minister Janardan Sharma and Lv Zexiang, president of CGGC Beijing, at the Prime Minister’s residence today. Prime Minister Puspa Kamal Dahal and Ambassador of China to Nepal Yu Hong were also present in the MoU signing ceremony.

Citing that energy is a critical need of the country for overall development, Prime Minister Dahal expressed hope that CGGC will be able to develop the project within the desired timeframe. The government will repay the loan of the company by selling electricity after the project starts commissioning electricity as the

developer has to develop the project under EPCF model.

The last Cabinet meeting of Prime Minister Dahal before his resignation had selected CGGC to develop the Budhigandaki project. The government has already started distributing money for land compensation to the project affected people.