Nepal | June 01, 2020

West Seti deal with Chinese company likely to be scrapped

Himalayan News Service
Share Now:

Kathmandu, October 11

With the Chinese company dilly-dallying over implementiation of the 750-megawatt West Seti Hydropower Project, the government has hinted it may scrap the deal with the China Three Gorges Corporation.

In a discussion with senior officials of the Ministry of Energy today, Energy Minister Mahendra Bahadur Shahi expressed frustration at the preconditions put forth by the CTGC before initiating the project — the agreement for which was signed five years ago.

“The government is mulling scrapping the deal with the CTGC and offering the project to Nepal Electricity Authority for implementation,” he told The Himalayan Times.

The CTGC and the NEA had signed a joint venture agreement to develop the project, under which the CTGC would have 75 per cent stake in the joint venture company and NEA would hold the rest.

However, the CTGC has delayed kick-starting the project by putting forth a number of conditions that need to be met before it begins any work.

As per the memorandum of understanding signed between Investment Board Nepal and the CWE Corp — a subsidiary of CTGC — in February 2012, construction of the project was supposed to begin in 2014.

CTGC recently asked the government for capitalisation of expenses incurred by the CTGC in conducting necessary studies of the project and sought assurance of market for the electricity generated. It has also said that since NEA is a joint venture partner in the project, the authority should step in as guarantor to obtain loan (from Exim Bank of China or any other Chinese bank) for investment in the project.

The Chinese company has also asked for special consideration in share allocation for locals. As per the rules, allotment of 10 per cent share to locals of the project site area is mandatory for hydel projects. However, the CTGC has said it will not allot shares to locals.

According to IBN officials, CTGC is pressing for all of its demands to be fulfilled before it sits for further discussions.

Nevertheless, NEA recently invited CTGC for talks between October 23 and 25 in Kathmandu to discuss execution of the project. However, the latter has not conveyed any confirmation about its participation in the meeting.

“The government is seriously considering scrapping the deal with CTGC if the company intends to buy more time,” said Energy Minister Shahi. “The conditions put forth by the Chinese company clearly show its reluctance to develop the project.”

The CTGC and the NEA had signed the joint venture agreement on January 17 this year. After signing the joint venture agreement, the project was expected to gather pace. However, the only thing that has transpired till date is that numerous demands have been put forth by the Chinese company.

Talking to THT, Minister Shahi said he would take forward the proposal to scrap the West Seti deal with the Chinese company if the latter refused to budge from its stance and did not come for talks to form a joint venture company for project execution.

 


A version of this article appears in print on October 12, 2017 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

NHRC deploys separate team to probe Soti incident

Kathmandu, May 31 The National Human Rights Commission has sent its own team to Jajarkot and Rukum West to probe the Soti incident where five people died and one went missing over an inter-caste marriage dispute. The NHRC, issuing a press statement today, said the team would be led by Deputy D Read More...

China cities aid Pokhara metropolis

Pokhara, May 31 Various cities of China have helped Pokhara metropolis with health materials worth 79,000 US Dollars. Mayor Man Bahadur GC said the metropolis had established relationship of brotherhood with different cities of China. He said nine types of health materials had reached Pokh Read More...

Jadon Sancho

Sancho hat-trick keeps Dortmund in title hunt

PADERBORN: England forward Jadon Sancho capped a blistering individual performance with a second-half hat-trick which helped Borussia Dortmund to a 6-1 win at Paderborn on Sunday and kept alive their slim Bundesliga title hopes. The result left Dortmund second on 60 points from 29 games wit Read More...

Amendment bill to update emblem tabled

KATHMANDU, MAY 31 Minister of Law, Justice and Parliamentary Affairs Shiva Maya Tumbahangphe tabled the Constitution Amendment Bill (second amendment) in the House of Representatives today seeking to update Nepal’s emblem by including the revised map of Nepal after amending Schedule 3 of the co Read More...

FNCCI calls for lockdown extension review

KATHMANDU, MAY 31 A day after the government decided to extend the nationwide lockdown for the seventh time till June 14, the private sector has urged the government to review its decision and modality of the lockdown. Issuing a press statement today, the Federation of Nepalese Chambers of Com Read More...

La Liga announces fixtures as season re-start looms large

BARCELONA: Barcelona will recommence their bid to defend the Spanish title on Saturday June 13 away to Real Mallorca after a three-month pause due to the COVID-19 pandemic, while Real Madrid will host Eibar on June 14, organisers La Liga announced on Sunday. The season kick backs into action Read More...

Chinese national held for misbehaving with girls

Kathmandu, May 31 Thamel police have taken Chinese national Chen Xi, 21, into custody after some locals caught a few Chinese men for allegedly misbehaving with some local girls in Chhetrapati area near Thamel, Kathmandu, yesterday. Chhetrapati area was tense yesterday, after two Chinese men al Read More...

JSP-N registers private bill

KATHMANDU: The Janata Samajwadi Party-Nepal is preparing to register a private constitution amendment bill at the Parliament Secretariat seeking to amend several provisions of the constitution to address the demands of Madhesis, Janajatis and other marginalised groups and communities. Senior Advo Read More...