Framework agreement also reached for 75 KV cross-country transmission line
KATHMANDU, June 21: Nepal and China have agreed to expedite eight major projects in Nepal, during the ongoing official visit of Prime Minister KP Oli to Beijing.
Memorandums of Understanding (MoUs) reached between Nepali agencies and enterprises and their Chinese partners include various projects in the areas of hydropower generation, manufacturing, river training and agricultural industries.
Separately, Nepal and China also signed an Agreement for Cooperation between Nepal Electricity Authority and the State Grid Corporation of China for a feasibility study of a Nepal-China Cross-border Power Grid Interconnection Project. As per the agreement, the two sides will carry out a feasibility study for a 400 KV Kerung-Rasuwagadhi-Galchhi-Ratmate transmission line. According to the Embassy of Nepal in Beijing, the two sides inked the deals during a special function organized at the embassy in the presence of Prime Minister Oli.
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Nepal and China have likewise signed a Project Investment Agreement to establish a cement factory at an investment of US$ 144 million. The company will have a production capacity of 3,000 metric tons per day, and it is expected to generate employment opportunities for at least 1,000 people.
Chief Executive Officer of Nepal Investment Board Maha Prasad Adhikari signed the agreement on behalf of the Government of Nepal, while Vice President of Huaxin Cement Co Limited Xu Gang signed for the Chinese side.
The two countries also signed an agreement to prepare a detailed feasibility study for Eastern Tarai River Training (Biring, Kamala, and Kankai rivers). The agreement was signed by Joint Secretary at the Ministry of Energy and Water Resources Dinesh Kumar Ghimire for the Nepal side and Deputy General Manager of China Communication Construction Company Liu Dongyuan on behalf of China.
At the level of the private sector, an MoU was signed by Fortuna Investment Chairperson Bhawani Rana and Zhang Zao of Guizhaou Maritime Silk Road International Investment Corporation to establish a Highland Food Park at the cost of US$ 46 million.
The two sides also reached a Joint Development Agreement to expedite the Kaligandaki Gorge Hydropower Project (164 MW) at an investment of RMB 2.2 billion under the BOOT model. The agreement was reached among Yunnan Xinhua Water Hydro Solutions Investment Company Limited, Hydro Solutions Group and Shanghai Investigation, Design and Research Institute Company Limited. Siuri Nyadi Hydropower Plant and National Electric Company Limited of China also signed an MoU to develop a 40.27 MW hydropower project under the EPCF model.
In another key agreement, an MoU was signed between Nepal Pashmina Industries Association (NPIA) and One Belt One Road (OBOR) International Trade Platform of CIC Mutual Trade Investment Company Limited. As per the MoU signed by President of NPIA Durga Bikram Thapa and Chairman of OBOR International Trade Platform of CIC Mutual trade Investment Co Limited Shu Ya, China will place purchase orders for between 200,000 to 500,000 pieces of pashmina shawls per year.
Nepal and China have also reached framework agreement for cooperation on the Marsyangdi Cascade. The agreement was reached between Butwal Power Company Limited, Sichuan Investment Group Company Limited and Sichuan Qingyuan Engineering Consulting Company Limited. The two sides will undertake joint project development of the Manang/Marsyangdi hydropower project that will have a 600 MW generation capacity.
Earlier on Wednesday morning, Prime Minister Oli met with Nepali nationals living in China. Addressing the gathering, the prime minister highlighted the priorities of the government and urged all Nepalis living abroad to extend support to the government’s effort to bring about the socio-economic transformation of the country.
Prime Minister Oli also inaugurated the 2018 Nepal-China Business Forum jointly organized by the Embassy of Nepal and the China Council for the Promotion of International Trade. On the occasion, Prime Minister Oli expressed confidence that Chinese entrepreneurs would take advantage of the conducive atmosphere and investment-friendly policies of the new government formed after the end of protracted political transition in Nepal.
Also on Wednesday, President of the Asian Infrastructure Investment Bank Li Jiqun called on Prime Minister Oli at Diaoyutai State Guest House.
The prime minister is scheduled to hold delegation level talks with his Chinese counterpart on Thursday.
