Nepal state firm to build $2.5 billion power project after China deal scrapped

A state-owned Nepali power company will develop the Himalayan country's biggest hydroelectric plant after the government scrapped a deal with a Chinese company, a government official said on Sunday. Nepal's cabinet scrapped a $2.5 billion deal with China Gezhouba Group Corp to build the Budhi Gangaki hydroelectric plant this month citing lapses in the award process.
"The cabinet has decided to entrust the Nepal Electricity Authority (NEA) to develop the plant," Pushkar Dhungel, an aide to Deputy Prime Minister Kamal Thapa who is also the energy minister, told Reuters. The government has also set up a panel to arrange for funds for the project, the energy ministry said in a notice, adding that the plant was expected to be ready in eight years.
The opposition Communist UML party, however, has said it would hand back the project to China if voted to power after elections that began on Sunday. Election results are expected next month after the second phase of voting on December 7.