KATHMANDU - Chongqing Water Turbine Works Co Ltd (CWTW), a Chinese company, has agreed to build a hydropower project in Nepal promoted by the private sector under Engineering, Procurement, Construction and Financing (EPCF) modality.

It is for the first time that a project in Nepal is being developed under EPCF modality. Under this modality, the Chinese company will coordinate all design, procurement, construction work and finance.

The CWTW and Nepal's People's Energy Limited signed a Memorandum of Understanding (MoU) to develop the 48.8 MW Khimti-2 Hydropower Project located at the border of Ramechhap and Dolakha district in province 3, 198 kilometers away from capital Kathmandu, the Nepali company said in a press statement.

Based on the MoU signed earlier this month, the Chinese company will finance $88 million to develop the project whose construction is expected to start in April this year. The project is expected to generate electricity commercially from July 2021.