PowerChina and Nepal Purvadhar enter contract under Beijing Belt and Road Initiative to construct Kathmandu-Kulekhani-Hetuda Tunnel
Nepal Purvadhar Bikas Company and China’s PowerChina Company have entered an agreement to construct Kathmandu-Kulekhani-Hetuda tunnel. Major points of the agreement include investment in the project, development and construction and operation management of the project.
PowerChina has also agreed to invest 95% of the total required investment in the project. Moreover, PowerChina has also taken the responsibility of raising 75% debt from international finance companies for investment in this project.
After 30 months of detailed inspection of the project site, PowerChina had submitted its technical proposal on 13th January 2018.
44% of the total length of the road will consist of tunnels and bridges due to which this project is still a geopolitical trust company.
As a result of continuous discussions since December 2015, Nepal Purvadhar Bikas Company Limited and PowerChina Company could enter the EPC contract on May 2017 under China’s Beijing Belt and Road Initiative.
