A Chinese government venture, China National Machinery Import and Export Company, has agreed to invest 51 per cent share in West Seti Hydro-project.

Chairman of West Seti Hydro-project Himalaya Pande told journalists in Kathmandu over a video conference Monday evening that he signed an agreement to this effect with chairman of the Chinese company Jia Zhiquane this afternoon.

The agreement was signed in presence of Prime Minister Madhav Kumar Nepal, energy minister Prakash Sharan Mahat and foreign minister Sujata Koirala in Beijing.

After assurance of investment PM Nepal has directed Nepal Electricity Authority (NEA) through energy minister Mahat to extend the license period of the project by one year. The license of West Seti Hydro-project was due to expire on December 31, this year.

The project is being constructed under an export plan where 90 percent of the production will be exported to India.

Ten percent of the production will be provided to Nepal for free for 30 years, and the entire project will be handed over to Nepal after that.

With the latest arrangement, the 750 MW West-Seti Hydro-project can go ahead without the investment of Asian Development Bank (ADB), which was considered the chief investor for the project before this.

The estimated cost of the project is USD 1200 million. The project now aims to collect only 15 percent investment from the ADB. Australian company SMEC is another chief investor for the project. nepalnews.com