Kathmandu, Nov 13: The Nepal government on Monday scrapped the contract for the construction of Budhi Gandaki hydropower project which was awarded to China’s Gejuwa Group citing irregularities and lack of transparency. Located in Central/Western Development region on the Budhi Gandaki River of Nepal, the Budhi Gandaki Hydropower Project is a storage type project, reports ANI.

The decision to scrap the construction contract of the 1,200 MW project was taken at a meeting of the Council of Ministers held in Singhadarbar on Monday. The project was supposed to be developed in Engineering, Procurement, Construction and Financing (EPCF) model.

Nepal’s Deputy Prime Minister Kamal Thapa took to twitter to inform that as directed by the parliamentary committees, the project has been scrapped. “The agreement marred by 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 committees,” he said in his tweet as translated by ANI.

Budhi Gandaki Hydropower Project was granted to the Gezhouba Water & Power (Group) Co Ltd (CGGC) company one and half year ago by the then Maoist-led government headed by the Former Prime Minsiter Pushpa Kamal Dahal (Prachanda). The then Minister for Energy Janardan Sharma had signed a memorandum of understanding (MoU) on June 4 in that regard.

Earlier it was reported that, if constructed, the Budhi Gandaki hydro power was most likely to displace 3,560 households and 8,117 families in Dhading. The project was estimated to cost Rs 250 billion.