Just as officials from the Nepal Electricity Authority (NEA) and China’s CWE Investment work to finalise the joint venture (JV) agreement for West Seti Hydropower Project ahead of Prime Minister KP Oli’s China visit, the Chinese company has proposed to help NEA get soft loan from Chinese banks for equity that NEA requires in the JV company.

With cash-strapped NEA reluctant to sign a JV agreement, citing inadequate resources to become an equity partner, the CWE Investment, which has got the licence to develop the West Seti Project, has assured NEA that it will help find resources, officials involved in the negotiations said.  NEA officials and CWE Investment, a subsidiary of China Three Gorges Corporation, started discussions on Friday aiming to finalise the JV agreement on West Seti so that it can be signed during PM Oli’s China visit beginning Sunday.  

Though officials refused to divulge details, those involved in the negotiations said they are looking forward to a deal on Saturday. “The discussions are moving towards a positive direction,” said NEA officials. “Chances of finalising the deal by tomorrow are high.”