Three Gorges May Scrap $1.6 Billion Nepal Hydro Plan, WSJ Says

China Three Gorges Corp. may scrap its proposed $1.6 billion hydro-dam in Nepal amid a probe to determine whether the license for the project was awarded in accordance to rules, the Wall Street Journal reported, citing a government spokesman for the South Asian nation.

Three Gorges has told the Nepalese government that the two sides can mutually agree to end the project if matters aren’t resolved, the newspaper said, citing Arjun Kumar Karki, joint secretary in the policy and foreign-coordination section at the energy ministry.

A shelving of the proposed 750-megawatt hydropower plant would be the second overseas project in the region to be halted in six months. China Power Investment Corp. said on March 12 it is in talks with Myanmar on resuming a 6,000-megawatt project suspended by the government in September following protests by environmentalists and ethnic groups living near the site.

The decision whether to proceed with the project is up to Nepal, the newspaper said, citing an official at Three Gorges that it didn’t identify. Zhu Guangming, the company’s Beijing- based spokesman, didn’t answer two telephone calls to his office seeking comment.

To contact the reporter on this story: Guo Aibing in Hong Kong at aguo10@bloomberg.net

To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net.

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