Connect with us

South Asia

Why is China Ditching Its New Friend Nepal Over The Seti Hydroelectricity Project?



In what could depress China-Nepal relations, China is seeking an exit from the prestigious Seti Hydropower Project. China had signed the agreement with Nepal for the 750 megawatt project 6 years ago and now the Chinese firm wants to pull out given the high costs. The Chinese company now finds the project financially impossible given the high resettlement and rehabilitation costs.

The Seti Hydroelectricity Project has now landed in a jeopardy after China’s keenness to pull out. In a memorandum of understanding, China had accepted the onus to execute the project. But this week, a high level delegation from CWE Investment Corporation told the authorities in Nepal that it finds the 750 megawatt West Seti hydropower project almost impossible to execute in financial terms.

Steep resettlement and rehabilitation costs of those who’d be displaced by the construction of the project has been cited as the main reason by the Chinese firm.

An official of the Nepal Investment Board states that the MOU signed by the Chinese firm with the Nepal Electricity Board will now have to be called off. To save the project the authorities in Nepal have proposed to reduce the capacity of the project to 600 megawatt from the initially decided 750 megawatt keeping the contract award of USD 1.2 billion unaltered. The authorities have also proposed to change the power purchase agreement and extend it to 12 years rather than 10 years which was initially agreed upon.

Despite these lucrative offers made by the Nepalese authorities, the Chinese firm still has concerns over costs and transmission of power to Kathmandu from the remote areas covered under the project. Technical difficulties and constraints related to finances still remain issues of discontent. China’s is reluctant to review its stance and will most probably end up walking out of it.

While Nepal’s foreign policy has opened up to China, this move from China might invite some unprecedented grudges between the two nations.

More News at EurAsian Times




J-10VSF-16 J-10VSF-16
Featured4 hours ago

Next US Intervention In Taiwan & There Would Be No Taiwan – China

Amid suggestions for the United States to deploy its troops to Taiwan, Chinese military experts have warned that any such...

Americas4 hours ago

Donald Trump Or Jared Kushner: Why Son-In-Law Kushner Deserved The Nomination For Nobel Prize Over Trump?

Having brokered the historic normalisation accord between the United Arab Emirates (UAE) and Israel, US President Donald Trump has been...

SU-30 SU-30
Featured9 hours ago

Rafale vs Su-30SM: Despite Rafale Jets, Why Su-30s Will Remain The Most Powerful Fighters In The Whole Of Asia?

Russia has won many hearts in India and China with its Sukhoi Su-30SM fighter jets, however, owing to the massive...

Featured11 hours ago

Can PM Modi Correct The ‘Balochistan’ Mistake That India Committed In 1947?

As history suggests, India lost out when the Sultan of Oman offered Gwadar as a gift to India but the...

eurasian-times eurasian-times
Featured11 hours ago

After SU-30 Jet, Now MiG-21 Fighter Jet Crashes In Western District

A Serbian military aircraft crashed Friday in western Serbia, the Defense Ministry confirmed. The ministry said that the MiG-21 military aircraft...

putin-russia putin-russia
EurAsian Region11 hours ago

Watch How Russian BM-30 Smerch Rockets Use GLONASS Navigation System To Hit Its Target

Russia has reportedly made another major breakthrough in boosting its missile launching capabilities with modernised BM-30 Smerch or 9A53-S Tornado...

Featured18 hours ago

Clear Message To China: India Army Will Fire If PLA Soldiers Come Forward

As India-China border tensions are yet to be completely diffused, according to a report by The Hindu, New Delhi has given...

s400-russia s400-russia
Featured1 day ago

Third Batch Of Lethal S-400 Triumf Missile Defence Systems Delivered To Russia

Almaz-Antey Air and Space Defense Corporation JSC delivered the third batch S-400 Triumf missile defence system to the Russian Ministry...

Cold-War Cold-War
Americas1 day ago

Who Is Winning The Race Between US, Russia & China To Develop World’s First Sixth-Gen Fighter Jet?

So far, the US is the only country to develop, operate and sell its fifth-generation fighter jets, while China and...

sukhoi-su-35 sukhoi-su-35
Featured1 day ago

Setback For Su-30 As Russian Su-35 Jet Shoots It Down After An Intense Dogfight

In a bizarre incident that happened over the Russian skies on Tuesday, a Russian Su-35S fighter jet reportedly shot-down Su-30SM...