China Three Gorges and Nepal Electricity Authority to work together
Nepalese officials involved in the negotiation said they initialed the agreement subject to be endorsed from their respective board of directors.
Once the boards of NEA and CTGC endorse the initial reached between the two sides, it will pave the way for signing JV agreement, said Maha Prasad Adhikari, chief executive officer of Investment Board Nepal (IBN), which facilitated the agreement between the two companies.
He described the development a "breakthrough" after the Nepali government and CWE Investment Corporation, a subsidiary company of CTGC signed a memorandum of understanding (MoU) in August 2012 to develop the project.
As per the MoU, the Chinese company will have a 75 percent stake in the reservoir type hydropower project with the NEA holding the rest.
The NEA, CTCG and IBN have been in tripartite negotiation since January 12, to pave the way for the development of Nepal's prioritized the project.
As per the consensus reached, the Chinese company will provide up to 10 percent of its stake to the public, according to Semanta Dahal, a Nepalese lawyer advising both IBN and NEA during the negotiation. ■