Fate of US$1.8bn Chinese dam project up in the air after Nepal ministers send mixed signals
Uncertainty deepens over US$1.8bn Belt and Road scheme after Nepalese energy minister appears to contradict colleague over whether deal to build it will be scrapped
Confusion about the fate of a Chinese-funded mega dam deepened on Tuesday as Nepalese ministers apparently contradicted each other about whether the US$1.8 billion deal would go ahead.
Last week the country’s finance minister had indicated that the deal with a state-owned Chinese firm to build the West Seti project would be cancelled and Nepal would fund the project itself.
The announcement appeared to be the latest blow to China’s transcontinental Belt and Road Initiative after Malaysia and Myanmar were reported to be reconsidering whether to go ahead with other major projects.
But Chinese state news agency Xinhua has now weighed in by saying that the original plan would still go ahead.
Its report quoted Nepal’s energy minister Barsha Man Pun as saying: “The West Seti project is still in the hands of [China Three Gorges Corporation] and we are ready to continue with CTGC if it is eager to develop this project.”
He added that Nepal could not develop these mega projects without overseas investment or loans, saying that the government was “exploring options” on how to have the dam built.
However in his annual budget statement last week the country’s finance minister Yubaraj Khatiwada said the country would fund the scheme itself and was scrapping the deal with China.