China to step up investment in Nepal’s hydropower sector: Nepalese official
China has ‘already proposed some projects’ in Nepal, as it looks to tap the country’s huge hydropower resources and sell power to India
China has plans to increase its investments in Nepal to take advantage of the country’s rich hydropower resources, according to a Nepalese official.
Nepal’s hydropower sector is particularly attractive to Chinese investors because there is potential to sell some of the power generated to India, said Hong Kong-based Consul General Bindeswar Prasad Lekhak.
“China is the biggest investor in Nepal, so I think China will support us more and more in the future,” Lekhak said on the sidelines of the Asian Financial Forum in Hong Kong earlier this week.
China is Nepal’s largest foreign direct investor, and Chinese companies have been involved in the country’s hydropower industry ever since Nepal opened up the sector to private investment in 2010, according to the Nepal Economic Forum, a research institute.
Investors from China contribute to more than one-quarter of Nepal’s hydropower projects, more than any other country, Lekhak said. India is the second-largest foreign investor in the sector, followed by several Western countries, he added.
Nepal’s largest hydroelectric power station – the 546-megawatt (MW) Upper Tamakoshi plant – was built by the Power Construction Corporation of China, with work completed in 2021.
Chinese investors and engineers are also involved in the construction of the 135MW Manang Marsyangdi hydroelectric plant, which broke ground last year.