China keen to harness power from rivers covering India, Nepal

Feb 16, 2009 -- Asia Pulse Data Source

Kathmandu - China has said it favours bilateral partnership with Nepal and India to harness power from transnational rivers that cover the three countries.

"In rivers, which cover China, Nepal and India, I think these three countries should work together and discuss about the possibility of their development," Chinese Ambassador to Nepal Qiu Guohong said.

Speaking to The Rising Nepal, Qiu said "we have already initiated cooperation among China, Nepal and India for water resources utilisation".

As an example he cited the 700 MW West Seti project, financed by Chinese bank, which aims at exporting electricity to India.

The water resource development should be a key area for bilateral cooperation, he said, adding "the Chinese government is willing to help Nepal in this regard".

"Some Chinese companies have already reached agreement to work with Nepal to develop hydro-power projects. China will also provide soft loan to the government of Nepal to develop water resources," he said.

In 2006, China pledged to provide USD 200 million soft loan to Nepal for the construction of the 60 MW Upper Trishuli Hydropower Project, he said.

Qiu also mentioned China's concern relating to security along the 1,414 km common border it shares with Nepal. "A stable, developing and friendly Nepal is very important to the security of China's southern part, particularly the stability and security of the Tibet Autonomous Region," he said.

He, however, said, "I believe China faces some discriminatory treatment from Nepal," and added that "some other countries enjoy some favourable treatments, not China," hinting towards India.

"I fully understand those historical backgrounds or the reality for those differences in treatment. But I hope the Nepal government could eliminate differences and create good conditions for Chinese enterprises," he said.