Chinese proposal to invest in Tamakoshi III and Tamor projects
August 25, 2016 05:16 PM NPT
KATHMANDU, Aug 25: The China Machinery Engineering Corporation (CMEC), a government-owned company of China has expressed interest in making investment in two important hydropower projects of Nepal.
The Company has proposed to the Government of Nepal expressing its readiness to invest in the Tamakoshi III and Tamor hydropower projects. The Tamakoshi hydropower project of 650 MW was abandoned by Norwegian company, SN Power saying that there was no market for power produced from the project.
Likewise, the 762 MW Tamor project, including a reservoir, is currently under study by the Nepal Electricity Authority (NEA).
The company has proposed to build the project on the engineering, purchase, construction and funding (EPCF) mechanism, according to the CMEC's Nepal representative Biswas Khatiwada. As per the provision to deal projects with 500 MW and above through the Investment Board of Nepal, the company has made the proposal to the Board.
The Company has also included a letter of intent for loan investment from the ICBC Bank of China, according to Khatiwada. The CMEC is a subsidiary company of the SINOMACH Company of China.
Chief Executive Officer of IBN Maha Prasad Adhikari confirmed receiving of the proposal from the Chinese company and added that further process in response to it was yet to begin.
The state-owned Chinese company is the latest among the increasing number of companies from China investing in the hydropower sector of Nepal. "As we have fulfilled all required procedures, we are hopeful that our efforts to help Nepal resolve its power crisis would bear fruit", said Khatiwada representing the CMEC company. RSS