Nepal has canceled the Budhi Gandaki hydropower project with the Chinese firm citing reasons such as irregularities and lack of transparency on the Chinese end.
Nepal's Deputy Prime Minister Kamal Thapa passed on the news about the latest development through Twitter after the decision was taken by the Parliamentary committee.
"The agreement, marred with irregularities with the Chinese company - Gejuwa Group regarding the construction of Budhi Gandaki hydropower project, has been scrapped in a cabinet meeting as directed by the parliamentary committee," (Translation), he tweeted.
Budhi Gandaki Hydropower Project is a storage type project, located in Central/ Western Development region on the Budhi Gandaki River of Nepal. The project was granted to the Gezhouba Water & Power (Group) Co Ltd (CGGC) company one and a half year ago by the then Maoist-led government, headed by Former Prime Minister Pushpa Kamal Dahal (Prachanda).