Chinese government venture China National Machinery Import and Export firm (CMC) has agreed to provide majority investment for the new 750MW West Seti hydro power project in Nepal.
The project is estimated to cost a total of $1.2bn.
The Nepal Electricity Authority has also extended the license of West Seti hydropower project which was scheduled to expire on 31 December, by one year.
Ninety percent of the electricity generated by the project will be exported to India while 10% will be provided to Nepal for free for 30 years.
The entire project will be handed over to Nepal after three decades.
ADB will provide 15% investment to finance the project in which Australian company SMEC is another chief investor, reports Hydroworld.com.