The Ministry of Energy (MoE) has clarified that there has been no any formal decisions made yet regarding granting one of the biggest hydroelectricity projects in the country- the Budhi Gandaki -to a Chinese company.
The clarification has come following the rumor widespread that the Ministry was going to hand over the construction of the 1200-Megawatt project to China Gezhouba Group of Companies (CGGC) Ltd.
The Chinese company however had sent a letter to the Ministry proposing the construction of the Project situated on the bordering place in Gorkha and Dhading district on July 6 this year, according to Secretary of the MoE Suman Prasad Sharma.
Earlier at the meeting of the Agriculture and Water Resources Committee under the Legislature-Parliament, Secretary Sharma had shared about the correspondence of the Chinese company.
The MoE had sent a letter to Chinese embassy in Nepal on July 14 through Ministry of Finance to acquire more information on the proposal made by the Chinese company, said Secretary Sharma.
“It is only correspondence. No any decisions have been made to this effect” clarified Sharma.
As per the existing provisions of the Electricity Development Act a project can be directly contracted out without any competitive bidding and the process could be forwarded if any investor proposes to this effect.