The appointment, which came after a long hiatus, has paved the way for the construction of the 140MW storage-type project.

The negotiations took three months as the firm demanded income tax exemption, which the Nepal Electricity Authority (NEA) rejected. Later, the foreign consultant agreed to pay the taxes.

The negotiations were also delayed due to a long-running dispute between Asian Development Bank and the Energy Ministry over whether to appoint the joint venture as the project’s consultant.

The ministry had argued that the ADB-selected firm lacked enough experience in sedimentation flushing.

“The consultant agreed to the government’s terms over tax, and the agreement could be signed,” said NEA Managing Director Mukesh Kafle. “The agreement means the project will now be built.”

The foreign form will work as project supervision consultant even after the completion of project for some years, as per the agreement.

The firm will now prepare tender documents to award the construction contract. “We plan to award the contract within 2015,” said Kafle.