KATHMANDU, Jan 17: Nepal Electricity Authority (NEA) and China Three Gorges Corporation (CTGC) have signed a joint venture agreement to build West Seti Hydropower Project.
As per the agreement, NEA will have 25 percent stakes in the joint venture company formed to develop the 750-megawatt project.
The agreement, which has been signed after five years since the signing of initial Memorandum of Understanding (MoU) between the government and the CTGC, has been termed a milestone in the development of the reservoir type project.
Kulman Ghising, managing director of NEA, and a representative CTGC signed the agreement. The agreement, however, is subject to approval of the board of directors both the entities.
Once the agreement gets the go ahead, a company will be established to execute the project.
Earlier, NEA had shown reluctance to sign the agreement saying that it won't have any say on major decisions. However, both the sides have arrived at a consensus that NEA will have its say on major decisions including awarding contracts.
CTGC also has pledged to allot 10 percent shares in the company to people in the affected areas. According to the agreement, CTGC may divest up to 14 percent of its stakes to Nepali private sector. But it would keep 51 percent of shares in the company.