China Three Gorges seeks clarification before JV


    Apr 7, 2017- China Three Gorges Corporation (CTGC), the developer of the West Seti Hydropower Project, has asked its joint venture partner Nepal Electricity Authority (NEA) to clarify several issues before it ratifies the agreement signed between the two.

    The Chinese company wants to make sure the NEA will sign a power purchase agreement (PPA) and buy the electricity generated by the 750 MW project. It has also asked the NEA how much it is willing to pay for the energy.

    Likewise, CTGC has expressed concern about the NEA’s financial health, and has asked if it can arrange equity financing for the portion of the total funding not covered by loans.

    CTGC recently sent a letter to the NEA through Investment Board Nepal (IBN), the project implementing authority, saying that its board will endorse the pact signed with the state-owned power utility after obtaining clarification on these points.

    Source: The Kathmandu Post