Government signed contract agreement of the Budhi Gandaki Hydropower Project with China Gezhouba Group Corporation on Sunday.

Energy Minister Janardan Sharma and a representative from the Chinese company signed the agreement paper for the construction of 1200MW project.

Prime Minister Pushpa Kamal Dahal and Chinese envoy to Nepal Yu Hong were also present in the signing ceremony.

A Cabinet meeting on May 23 had approved the Energy Ministry’s proposal in principle to let the Chinese company build the 1,200 MW project under the engineering, procurement, construction and finance (EPCF) model of project development.