After months of preparation, Nepal Electricity Authority(NEA) and China-based Three Gorges Corporation(CTGC) are going to sign a joint venture agreement for the construction of the 750 MW West Seti Hydropower Project by the end of the month, reports OnlineKhabar.
The two corporations had signed an agreement in January of this year. But while NEA board had approved the agreement, CTGC had put forth its demands and concerns.
CTGC wanted to capitalize the project-related costs in China. It demanded that the project receive preferential power purchase rates. Nepal Investment Board has hinted that it shall allow the first demand and it is working to preferential rates to the project, which will cover the following districts; Doti, Baitadi, Bajhang, and Dadeldhura.
Now that both parties are in agreement, Spokesperson Uttam Bhakta Wagle said that the agreement will get signed by the second week of November. CTGC will have 75 per cent stake in the joint venture.
To talk on this project, NEA had invited CTGC to visit Kathmandu at the end of October. NEA board officials further say that if negotiations are not fruitful soon, the entire deal could be scrapped.