China agrees to lend Nepal $1.6B for West Seti hydel project

 China has agreed to lend Nepal $1.6 billion for thet West Seti Hydropower Project.

The government of Nepal is building the project following the annulment of West Seti's licence on July 28.

This is China's second investment in Nepal's hydropower sector after Upper Trishuli 3A.

Outgoing Energy Minister of Nepal Gokarna Bista said Beijing has agreed the loan for the 750 MW project.

"We could have signed a memorandum of understanding with China Exim Bank for the project had our government stayed a bit longer," said Bista.

After estimating financial capabilities of interested countries, the government of Nepal has concluded that only China can build this project. The Chinese government, through the China Exim Bank, has already provided
loans worth around Rs 9 billion for the 60 MW Upper Trishuli 3A.



Energy Secretary Balananda Poudel said Nepal had requested China to provide the entire amount of $1.6 billion as concessional loan. "However, China has said that the loan amount will be a combination of soft and
commercial loan," said Poudel.