CGGC takes on $2.5bn hydro power plant in Nepal

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:

• Nakheel awards $121.69mn contract for 12-lane 'super bridge'
• Nakheel reports a Q1 2018 net profit of $410mn
• Nakheel awards contract for $162mn Nad Al Sheba Mall

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.