Butwal Power Company Limited (BPC) has partnered with three major Chinese companies to develop hydropower projects in Nepal with an investment of up to $3 billion. The joint venture was launched in the Capital on Wednesday.

The three major Chinese companies are Sichuan Provincial Investment Group (SCIG), Chengdu Xingcheng Investment Group (CXIG) and Qing Yuan Consulting Co (QYEC). The joint venture between BPC and its Chinese partners will begin with the Lower Manang Marsyangdi Hydroelectric Project located in Western Nepal. The project will generate over 100 MW.

The joint venture is aiming to develop hydro projects that will add up to 1,000 MW to Nepal’s electricity grid in the next five years with an investment of up to $3 billion.

The three Chinese firms are based in Sichuan Province in Western China. Like Nepal, Sichuan is rich in hydropower and has successfully developed its hydropower capability, generating over 75,000 MW.

Of the 3 Chinese firms, SCIG and CXIG are state owned companies while QYEC is a private firm.

SCIG is a major player in China’s hydropower landscape and has developed numerous projects. They own projects that generate 37,000 MW of electricity.

CXIG is another large state owned company with investments in many sectors. They played a big role in developing Chengdu City and own large assets in the city.

QYEC is the only Chinese class A engineering and consultancy company in the private sector. They also own hydropower plants in Sichuan.

According to BPC, they are a public limited company and recently celebrated their 50th anniversary by starting construction on two of their new projects: Kabeli A Hydro Electric Project (37.6 MW) and Nyadi (30 MW).

BPC has been operating 12MW Jhimruk and 9.4MW Andhikhola power plants and has invested in Khimti and Khudi plants.

BPC also distributes electricity to more than 50,000 households in Syangja, Palpa, Pyuthan and Arghakhanchi districts of western Nepal.Through its subsidiary companies, BPC is engaged in operation & maintenance of power plants, consulting engineering of hydropower and infrastructure projects, manufacturing and repair of hydro-mechanical and electro-mechanical equipment for power plants, reads a press release.