Kathmandu — A week after government announced to construct West Seti hydro power projects mobilizing internal resources, China has said that ‘Chinese firm is in talks with Nepali side on this cooperatation project’s economic feasibility and other concerte matters.’
Presenting budget in federal parliament on May 29, Finance Minister Yubaraj Khatiwada had said that construction of wokrs on West Seti would be commenced by mobilizing internal resources. The Nepal Investment Board9IBN), however, refuted the media reports that government is constructing hydropower from internal resources. The media reports were based on budget speech made by Finance Minister.
“No decision has been made to scrap the pact sigend with China Three Gorges Corporation,” IBN said in a press statement on Wednesay. Subsquently, Ministry of Foreign Affaris of China also said that such reports are not true.
“The relevant project is a commercial one. The Chines firm involved is in talks with the Nepali side on this cooperation project’s economic feasibility and other concrete matters,” Chinese Foreign Ministry Spokesperson Hua Chunying said in regular press conference on Wednesday.
Just after Budget , Ministe for Energy, Water Resoruces and Irrigation Barsha Man Pun also said that government has not cancelled wth deal. In an interview with Chinese government news agency Xinhua, Pun said, “ The West Seti project is still at the hand of CTGC and we are ready to continue with CTGC if it is eager to develop this project.”
Before the Nepali’s government’s announcement, the negotiation between the two sides had stuck on a few issues including power purchase rate. The Chinese company had termed the power purchase rate offered by Nepal unfeasible but Nepal refused to make revision, according to Nepali officials, Xinhua reports.
