Nepal government selects China Gezhouba for 1,200-MW Budhi Gandaki hydropower project

Nepal Mountains

The Nepal government will award a contract to the China Gezhouba Group Corp. to construct the 1,200-MW Budhi Gandaki hydropower project.

The deal, offered during a meeting of the country’s Ministry of Energy this week, will see China Gezhouba build the plant under an engineering, procurement, construction and finance model. Still, the parties must sign a memorandum of understanding and other regulatory agreements before the award is made official.

“As per the pact, China Gezhouba will get a year to make an assessment of the hydropower project and arrange funds for its development,” Minister of Energy Janardan Sharma said. “if the Chinese developer comes up with a proposal agreeable to us, we will sign another contract.”

Budhi Gandaki has been pitched by the Nepalese government for more than a decade as a means of both alleviating the country’s energy deficit and decreasing its reliance on fossil fuels.

The plant and its reservoir are to be located in the Dhading and Gorkha districts.

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Michael Harris formerly was Editor for

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