June 9: The Government of Nepal has signed a preliminary Project Development Agreement (PDA) for the construction of Manang Marsyangdi Hydropower Project with Chinese investment.

The initial PDA was signed by Joint Secretary Madhu Prasad Bhetuwal on behalf of the government and Uttar Kumar Shrestha, Chief Executive Officer of Butwal Power Company on behalf of the promoter company. The full agreement will be signed after the approval of initial agreement by the Council of Ministers.

Butwal Power Company will invest 20 percent in the project with a capacity of 135 MW. Eighty percent of the investment will be from China's Sichuan Provincial Investment Group, Chengdu Xingcheng Investment Group and Qing Yuan Engineering Consulting Company (QYEC).

The construction of the project will move ahead with joint investment. Negotiations had been going on for a long time for the PDA of the project. The project will be constructed in Naso and Chame villages of Manang district. The project is estimated to generate 759.48 million units of electricity annually.

The project aims to start generating electricity by 2025. The electricity of the project will be connected to the 220 KV switching station of NEA at Dharapani of Manang.