Nepal has signed an agreement with a Chinese firm to build the largest hydroelectric plant in the poor landlocked country, which suffers from a chronic power shortage.
Nepal’s energy minister Janardan Sharma signed the agreement for the China Gezhouba Group Corp. to build the long-mooted 1,200 megawatt Budhi-Gandaki hydroelectric project.
Estimates put the project cost at US$2.5 billion (HK$19.5 billion).
Water-rich Nepal has a mountain river system that can make it an energy- producing powerhouse, but instead it imports much of its power from neighboring India. India and China have vied for influence in the small country.