CGGC takes on $2.5bn hydro power plant in Nepal

By Andrew Woods
Nepal’s government is handing over the $2.5bn Budhi Gandaki Hydropower Project to the China Gezhouba Group Corporation (CGGC). The project was shelve...

Nepal’s government is handing over the $2.5bn Budhi Gandaki Hydropower Project to the China Gezhouba Group Corporation (CGGC).

The project was shelved last year, before Sher Bahadur Deuba’s decision to proceed with the development of the 1200 MW project with internal resources.

The Energy Ministry will now invite the Chinese company for talks and will prepare a draft of the memorandum of understanding (MoU).

The Pushpa Kamal Dahal-led government also signed an MoU with the CGGC in May 2017 to execute the project under the EPCF model, but the deal was subsequently scrapped. The company was originally named developer under the Chinese-led Belt and Road Initiative (BRI). The BRI is a massive $900 billion China-proposed development of a trade route, stretching from the south pacific, up to Europe,

Experts have criticised the Oli government's decision to rehire the Chinese company to develop the project without competitive bidding, saying such a move might make the project more expensive.

Related stories:

The Budhi Gandaki project has been seen as key to resolving the ongoing power crisis in Nepal. More than 8,000 households will benefit from the project, according to a new report.

 

 

Share
Share

Featured Articles

McKinsey: Tech can Help Construction Address Staffing Issue

McKinsey analysis of US skilled-labour shortage suggests ways technology can help tackle construction workforce challenges

Skanska Remains on Target for Sustainability Goals

Skanska, the global construction group, reports Q1 2024 results, with its performance on Scopes 1,2 & 3 GHG emissions remaining on track

Intel & Micron Join US Women-in-Construction Drive

Intel & Micron Technology early adoptors of US government's CHIPS Women in Construction Framework, designed to double number of women in construction

Dubai new Al Maktoum Airport Will be World's Largest

Built Environment

Caterpillar: Profile of a Construction Equipment Giant

Built Environment

ROSHN Helping Build new Future for Saudi Arabia

Construction Projects