CHINA-NEPAL: HYDRO PROJECT PART OF BRI CANCELLED
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A high-level delegation from CWE Investment Corporation, a subsidiary of China Three Gorges Corporation which had in 2012 undertaken to execute the project in a memorandum of understanding (MOU), told the Nepalese authorities in the last week of August 2018 that the 750-megawatt West Seti hydropower project is financially unfeasible because of the steep resettlement and rehabilitation costs. However, in an effort to save the contract, senior Nepali officials including Finance Minister Yubaraj Khatiwada and Energy Minister Barshaman Pun offered to reduce the generation capacity to 600MW from the proposed 750MW for the same contract award of US$1.2 billion, and extend the power purchase agreement to 12 years from the 10 years earlier agreed upon.
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