Nepal has extended a warm welcome to more Chinese hydropower companies to invest in projects worth $400 billion, following the approval of a $1.8 billion contract to China Three Gorges Corp.

"In terms of capital, nobody can compete with China," Binod K. Chaudhary, member of Nepal's constituent assembly and parliament, told reporters on Tuesday on the sidelines of the Boao Forum for Asia in Hainan province.

"The biggest opportunity for Chinese companies in Nepal is to build projects in the same manner as the West Seti project."