China Eximbank pledges to finance 1200 MW Budhi Gandaki Hydropower Plant Project

On May 24, 2017, the Government of Nepal approved a memorandum of understanding (MOU) between its Energy Ministry and China's Gezhouba Group Cement Co. Ltd., to construct the 1200 MW Budhi Gandaki Hydropower Plant, which costs $2.5 billion.

Gezhouba Group signed the contract on an EPC + F (Engineering, Procurement, Construction, and Financing) model, meaning that the company is supposed to lead the financing.

China Eximbank reportedly pledged to finance the project but the specific amount of financing that it pledged is unknown. According to the MOU, Gezhouba Group would have one year to assess the project and arrange the necessary funds. Loan applications and disbursements are still being received and processed as the projects continue to evolve.

Ongoing monitoring and evaluation are in place to ensure project continuity.