PowerChina and Nepal Purvadhar enter contract under Beijing Belt and Road Initiative to construct Kathmandu-Kulekhani-Hetuda Tunnel

Nepal Purvadhar Bikas Company and China’s PowerChina Company have entered an agreement to construct Kathmandu-Kulekhani-Hetuda tunnel. Major points of the agreement include investment in the project, development and construction and operation management of the project.

PowerChina has also agreed to invest 95% of the total required investment in the project. Moreover, PowerChina has also taken the responsibility of raising 75% debt from international finance companies for investment in this project.

After 30 months of detailed inspection of the project site, PowerChina had submitted its technical proposal on 13^th January 2018.

44% of the total length of the road will consist of tunnels and bridges due to which this project is still a geopolitical trust company.

As a result of continuous discussions since December 2015, Nepal Purvadhar Bikas Company Limited and PowerChina Company could enter the EPC contract on May 2017 under China’s Beijing Belt and Road Initiative.