Nepal eager to develop energy cooperation with China: Energy Minister Pun
KATHMANDU, June 5: Minister for Energy, Water Resources and Irrigation, Barsa Man Pun has said that Nepal government is eager to explore its energy potentials especially in water resources by attracting investments from China.
Prime Minister K P Sharma Oli is set to pay a state visit to China later this month, where he will carry the agendas featuring energy coordination, roads and railway links, cross border transmission line, petroleum storage facilities and transit and transportation facilities. The duo is also expected to sign the Memorandum of Understanding to launch joint feasibility study on Nepal-China Free Trade agreement.
Minister Pun said that his ministry had recently prepared a list which includes 7 big hydropower projects, 6 transmission line projects that Nepal hopes to develop with Chinese grant, loan or under the Belt and Road Initiative, according to Xinhua.
However, after the government, in its annual budget for the fiscal year 2018/19, announced that the 750MW West Seti Hydropower Project would be developed with the domestic resources, widespread concerns have been raised on the possible negative impact on Chinese investment. The project, located in the far-western development region, was handed over to China Three Gorges Corporation (CTGC) in 2012.
But Minister Pun has clarified that the deal with the CTGC has not yet been canceled
“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,” Pun told Xinhua in an interview.
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.
Likewise, in November last year, the previous government led by Sher Bahadur Deuba had cancelled the deal with another Chinese company — China Gezhouba Group Corporation (CGGC) signed to develop the 1200MW Budhigandaki Hydropower Project, citing “instructions issued by parliamentary committees.”
“As far as Budhigandaki Hydropower Project is concerned,” the minister said, “The present government wants cooperation with China to develop this project despite scrapping of the deal by the previous government.”
“We are willing to develop this project in cooperation with China either in the form of government to government cooperation mechanism or by taking soft loans from China,” he added.
Despite the decision to develop these projects with its own resources, Pun admitted that Nepal can’t develop these mega projects without overseas investment or loan, “we are exploring the options.”
“I am enthusiastic about the possible surge of Chinese investment in Nepal’s energy sector despite setback in these two cases,” he said.