(EnergyAsia, March 13, Thursday) — China is expected to provide Nepal soft loans worth a total of US$187 million for the construction of two hydropower projects.

The proposed 61 MW Upper Trishuli 3 ‘A’ and 44 MW Upper Trishuli 3 ‘B’ hydropower plants are slated to sell their electricity to domestic consumers, according to a feasibility study now underway.

Assistant Minister for Foreign Affairs, He Yafei, who led a nine-member delegation to Nepal last week, said China’s Commerce Ministry will provide a loan of US$125 million for Upper Trishuli 3 ‘A’ and US$62 million for Upper Trishuli 3 ‘B’. The plants are expected to start operating from 2012, with construction to start later this year.

In September 2006, the Chinese state-owned Export-Import Bank had promised to provide Nepal US$200 million in concessionary credit for infrastructure projects including hydropower projects.