On October 22, the groundbreaking ceremony and financing closure for the Manang Marsyangdi Hydropower Station project in Nepal were held simultaneously in Chengdu, Sichuan, alongside the banks of the Marsyangdi River in Nepal. This event marks the official commencement of the Marsyangdi cascade hydropower station, which is being constructed with investment from Sichuan enterprises.
The Marsyangdi cascade hydropower station project is a prioritized initiative within the China-Nepal power cooperation framework and serves as a flagship project for Sichuan’s participation in the Belt and Road Initiative. It plays a crucial role in enhancing the friendly relations and cooperation between China and Nepal. Located on the Marsyangdi River in Gandaki Province, the project consists of three interconnected hydropower stations with a total installed capacity of approximately 600,000 kilowatts and an annual electricity generation of over 3.1 billion kilowatt-hours, representing a total investment of around $1.2 billion.
The hydropower station that initiated construction on this day is the first phase of the project, with an installed capacity of 135,000 kilowatts. This undertaking is a joint investment initiative involving Sichuan Province Investment Group, Nepal’s Butwal Power Company, Chengdu Xingcheng Investment Group, and Sichuan Qingyuan Engineering Consulting Co., Ltd. Once operational, it is expected to significantly alleviate the region’s electricity supply challenges, improve local transportation conditions, and benefit the local populace. “The commencement of this project will certainly become an important milestone in energy cooperation between Nepal and China,” noted Surendra Kumar Yadav, the Chargé d’Affaires of the Nepalese Embassy in China. He emphasized that Nepal, with its abundant water resources, considers energy—particularly hydropower development—to be fundamental for realizing its prosperity.
The Marsyangdi cascade hydropower station stands as the largest power investment project by Chinese enterprises in Nepal and is also the first overseas energy investment initiative for state-owned enterprises from Sichuan. In 2022, this project successfully signed the first project development agreement (PDA) between Chinese enterprises in Nepal, effectively safeguarding state investment security. “The Marsyangdi River originates from the Himalayas, transforming quality resources into bright energy that illuminates countless homes, embodying the essence of people’s livelihoods,” said Wu Xiaoxi, Secretary of the Party Committee and Chairman of Sichuan Province Investment Group.
Furthermore, the project has secured a RMB loan from the Sichuan branch of the China Export-Import Bank, facilitating the establishment of a bilateral currency settlement system between China and Nepal, or a regional currency settlement system. This will lay the groundwork for a diversified and balanced international monetary system and support the internationalization of the RMB.
