China National Machinery Import and Export Company, a Chinese government venture has agreed to invest 51 per cent share in West Seti Hydropower Project.
Himalaya Pandey, chairman of West Seti Hydro-project talking to journalists in Kathmandu over a video conference Monday evening said that he signed an agreement to this effect with chairman of the Chinese company Jia Zhiquane Monday afternoon.
The agreement was signed in presence of Prime Minister Madhav Kumar Nepal, energy minister Prakash Sharan Mahat and foreign minister Sujata Koirala in Beijing.
Following the assurance of investment PM Nepal has directed Nepal Electricity Authority (NEA) through energy minister Mahat to extend the license period of the project by one year. The license of West Seti Hydropower Project was going to expire on December 31.
The project is being constructed under an export plan where 90 percent of the production will be exported to India. Ten percent of the production will be provided to Nepal for free for 30 years, and the entire project will be handed over to Nepal after that.
With the latest arrangement, the 750 MW West-Seti Hydropower Project can go ahead without the investment of Asian Development Bank (ADB), which was considered the chief investor for the project before this.
The estimated cost of the project is US$ 1200 million. The project now aims to collect only 15 percent investment from the ADB. Australian company SMEC is another chief investor for the project.
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