KATHMANDU, May 23: The government has decided to award Budhi Gandaki hydro project to a Chinese company.
Tuesday’s cabinet meeting decided to award the 1200 MW reservoir project to China Gezhouba Group Corporation (CGGC), China’s government-owned company. Minister for Law and Justice Ajay Shankar Nayak informed that the cabinet decided to begin the process of awarding the project. The government hereafter will prepare a guidelines on awarding the project including financing model.
Cabinet sources also informed that the decision has been made to award the project in a model of engineering procurement, construction and financing EPCF) model. According to this model, the developer also has to bring in financing to build the plant to be built in Budhagandaki river in Dhading and Gorkha. The project’s estimated cost is Rs 250 billion including the cost of land acquisition. Land acquisition is underway after completion of Detailed Project Report.