KATHMANDU: The Investment Board of Nepal has initiated the process of parting ways with Power China from the 679 MW Tamor Reservoir project.

The IBN board meeting, held on Sunday, has decided to seek clarification from Power China regarding the lack of progress in accordance with the agreement and action plan outlined by the Nepali company, Hydroelectricity Investment and Development Company (HIDCL).

HIDCL has formally written a letter to the Investment Board of Nepal, requesting them to discontinue the agreement signed with Power China in October 2019.

In response to HIDCL’s request, the Investment Board of Nepal (IBN) decided to send a letter to Power China, urging them to provide a clarification regarding the concerns raised.

Three years ago, during Chinese President Xi Jinping’s visit to Nepal, an agreement was reached wherein Power China committed to investing 74 percent in the mentioned project.

The government has planned to exclude Power China from the Tamor reservoir project and bring in an Indian company.

Arjun Kumar Gautam, the Chief Executive Officer of HIDCL, has stated that they have reached the conclusion that the project cannot be developed in collaboration with Power China. This decision is based on the observation that Power China is not interested in adhering to the terms of the agreement.