Nepalese PM denies cancellation of hydropower contract

Nepalese Prime Minister K.P. Sharma Oli on Tuesday denied media reports that Nepal has cancelled a contract for construction of the West Seti hydroelectric project with China Three Gorges Corp (CTGC).

In an interview with the Global Times, Oli said, “West Seti hydropower project is under consideration by Investment Board of Nepal and no decision has been taken yet.”

“West Seti is our national priority project and our decision on its execution is absolutely guided by the considerations of what is best in our national interest,” Oli said, noting that such decisions are never guided by external factors.

Nepal and China could work together for the development of hydropower in Nepal, he said.

Chinese companies have acquired enough experience in this field through their involvement in overseas power generation projects, according to Oli.

“Most of them are at the leading edge of technology. They are most welcome to invest in our country. We will create an environment that is conducive for Chinese investors,” he noted.

Concerns arose after the Nepalese government announced on May 29 in its annual budget for fiscal year 2018-19 that the West Seti project would be developed with domestic resources, the Xinhua News Agency reported in May.

The project was handed over to CTGC in 2012, Xinhua noted.

Oli started a six-day visit to China on Tuesday. “There exist huge potentials for expanding our economic partnership with China with particular focus on multidimensional crossborder connectivity, energy, trade, investment and tourism,” Oli said.

“I am hopeful that my visit will provide an excellent opportunity to consolidate our political relationship and expand the scope of our overall bilateral cooperation.”