The government of Nepal has decided to scrap the agreement signed with the Chinese company, Gezhouba Group, for the construction of Budhigandaki Hydroelectric project.
A Cabinet meeting held on Monday (Nov 13) the decision to this effect.
Rasriya Prajatantra Party (RPP) Chairman and Deputy Prime Minsiter Kamal Thapa said in a tweet that the agreement signed recklessly and shadily with Chinese group was scrapped following the directives of various parliamentary committees.
Baburam Bhattarai-led Naya Shakti Nepal on June 8 had said that the decision of Pushpa Kamal Dahal-led government to award the contract to construct Budhi Gandaki Hydropower Project to Chinaâ€™s Gezhouba Group Corporation was against the nationâ€™s interest.
The Budhi Gandaki has been touted as a key project to resolve the perennial power crisis in the country.
The government has allocated a budget of Rs5.33 billion for the projectâ€™s development for this fiscal year.
A Cabinet meeting on May 23 had approved the Energy Ministryâ€™s proposal in principle to let the Chinese company build the 1,200 MW project under the EPCF model of project development.
Former Prime Minister Pushpa Kamal Dahal and his predecessor KP Sharma Oli had sought Chinese investment in national pride projects during their visits to the northern neighbour.