The China Three Gorges Corporation (CTGC) and the Ministry of Energy (MoE) of Nepal signed a Memorandum of Understanding (MoU) on Feb. 29th to construct the 750MW West- Seti project in a Public - Private Partnership Model.

Joint Secretary of MoE Arjun Kumar Karki and Executive Vice-president of CTGC International Corporation Wang Shaofeng signed the MoU at the ministry in the presence of Energy Minister Posta Bahadur Bogati, the Chinese Ambassador to Nepal Yang Houlan and the Economic & Commercial Counselor Di Rong.

As per the MoU, CTGC will have 75% stake while the Nepal Electricity Authority (NEA) will have 25% stake in the Joint Venture. According to a study conducted earlier, the project will cost a total of Rs.1.6 billion dollar. The construction will begin in Jan. 2015 and is expected to be completed by the end of 2019. The project will provide 3.33 billion units of energy per year and is expected to significantly contribute to the annual energy demand which is expected to reach 9.56 billion units by the end of 2019.