With almost eradication of blackouts so called “Loadshedding”, Nepal has cancelled the queued another hydropower deal project with a Chinese company. Project had aimed as West Seti Hydropower Project signed has signed with China Three Gorges International Corporation to be constructed and well functioned. Earlier, government has already scraped Budhigandaki hydroelectric project with China.
The company wrote to Nepal Investment Board’s (NIB) last December citing the dissatisfaction over project conditions proposed by the board. Following this, NIB has decided to cancel the deal. Since, the Chinese firm has also been planning to scrap the deal as they too are dissatisfied with the Nepal Investment Board’s (NIB) power purchase rate policy.
According to the company, “If Nepal Government or Nepal Electricity Authority does not like to revise the Power Purchase Rate policy in order to improve the economic conditions of the project, the project will become economically infeasible according to the result we carefully calculated. Therefore, it becomes no necessary to consider any next work plan or action.”
The letter ends on a good note saying, “We truly appreciates your continuous support on our work and we kindly hope your party could try the best to make the project economically feasible.”