China has agreed to invest in the 750 MW West-Seti Hydropower Project. China has agreed to provide a loan of US $1.6 billion through Export-Import Bank of China (EXIM Bank).
China has informed Nepal government that half of US $1.6 billion will be soft loan and half will be commercial loan.
Nepal government has requested to provide the entire amount as soft loan. The payback period for the loan will be around 28 years.
Energy Minister Gokarna Bista said he has already asked to start the project stating the agreement was made with China for the investment on the project. “On various meetings held with the Chinese officials, they have agreed for the investment,” he said, “We have requested to provide the entire amount as soft loan, after detailed discussion on this topic a memorandum of understanding (MoU) will be signed soon.”