Nepal's government has awarded Indian infrastructure group GMR the contract to build the 900MW Upper Karnali hydropower plant, the largest hydro scheme in the country.
Officials from the Nepal Investment Board signed an agreement with GMR on Friday in the presence of Nepal's Prime Minister Sushil Koirala and Indian Home Minister Rajnath Singh.
The deal for the estimated US$1.4 billion dam project is the biggest foreign investment in the country's history, and it is expected to encourage further hydro investors into the region. Hydro potential in Nepal has been estimated at around 83,000MW, with only 730MW installed.
The government of Nepal has prepared a plan for the development of 10,000MW and 25,000MW of hydropower for the coming 10 and 20 years respectively.
