KATHMANDU: A board meeting of Investment Board Nepal, led by Prime Minister KP Sharma Oli, held late on Tuesday decided to scrap the earlier agreement with China Three Gorges International Corporation to implement the West Seti hydropower project — six-and-a-half years after the pact was signed.

The final round of negotiations with the officials of the Chinese company had been held on August 28 and 29 and had ended inconclusively after the two sides failed to find a middle ground.

During the talks, the Chinese firm seemed reluctant to take the project forward citing the low rate of return. IBN officials claimed that the Chinese firm had put forth additional conditions despite flexibility shown by the Nepali side.

The budget of the fiscal has envisioned developing West Seti project utilising local resources if the Chinese company pulled out.

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