Kathmandu—Chinese Company Three Gorges International is all to backtrack from 750 MR West Seti Hydroelectric Project.
Discussions held between Nepali officials and representatives of Three Gorges Company on Tuesday and Wednesday ended without any progress. In the meeting, the Chinese Company indicated that it would not construct the hydropower project. The company sought 17 percent return on its investment, and also found the resettlement and rehabilitation work under the project challenging.
The Chinese side demanded clear view of the government of Nepal on the issue in the bilateral meeting held in the Capital on Tuesday and Wednesday, saying the issue of private and government land acquisition of project-affected area became complex. The Nepali side has said that the issues could be finalized on the basis of talks and coordination. An understanding was reached to reduce the 700-MW project to 600-MW.
The Chinese side failed to give final decision whether or not to construct the project immediately, saying further discussion was required in this regard.
Chief Executive Officer of Investment Board, Maha Prasad Adhikari, said that they would present the overall issues raised by the Chinese side in Board’s meeting. “We requested the Chinese side to forward the construction of the Project. But the Chinese side called for further discussion”, he said.
The West Seti Hydropower Company held the survey licence of the project for 15 years before the Jhalanath Khanal-led government scrapped it in 2011. The project was originally designed as export-oriented, with plans to sell 90 percent of the power to India. However, the West Seti company failed to move ahead with the construction, mostly because of its failure to manage the funding. In January 2011, the company had proposed developing the project under the Public Private Partnership model and sought an extension of the deadline for financial closure of the project.
