China Gezhouba Group Corp (CGGC), the main builder of China's Three Gorges project, said the cancellation of a memorandum of understanding (MOU) for the Budhigandaki Hydroelectric Project in Nepal will not affect the current year's performance.
The comment was a response to news that Nepal's Ministry of Energy had notified CGGC it would terminate joint construction of the 1,200-megawatt Budhigandaki hydropower station.
Nepal made a unilateral decision, the Chinese company said in a notice to the Shanghai Stock Exchange on Saturday.
The project budget mentioned was not included in the total amount of new contracts disclosed by CGGC, and the cancellation of the MOU will not adversely affect CGGC's new projects in the current fiscal year, it said.
Central State-owned enterprises must shoulder national strategic tasks and also consider economic benefits while carrying out the Belt and Road initiative, Wang Jiang, director of the Beijing-based Central SOEs Think-tank Alliance, told the Global Times on Sunday.
"The most important thing is to achieve mutual benefit and win-win situations," Wang noted.
The Xinhua News Agency reported in June that the amount of the project under the Nepal MOU was about $2.4 billion, and the station was to be a key project in solving Nepal's long-term shortage of electricity.
