China to provide fund for two hydropower projects

China has assured that it will provide soft loan worth US$ 187 million for building two hydropower projects that will sell electricity in the domestic market. The two power projects are 61 MW Upper Trishuli 3 ‘A’ and 44 MW Upper Trishuli 3 ‘B’.

A 9-member Chinese delegation that visited Nepal this week led by Assistant Minister for Foreign Affairs He Yafei had told Nepalese authorities that China’s Commerce Ministry would be told to provide the soft loan of US$125 million for building the Upper Trishuli 3 ‘A’ and US$ 62 million for Upper Trishuli 3 ‘B’.

The money is part of a US$ 200 million concession credit committed to Nepal by China's state-owned Export-Import Bank in September 2006.

The feasibility study for the two power projects has already started, according to NEA officials.

The construction work on the projects will start in next financial year and they will start generating electricity from 2011-12. nepalnews.com ag Mar 07 08