Nepali water resources officials have selected US-based Eurorient Investment Group to develop the 402MW Arun III hydro power plant.

The power plant is to be built on the Arun river in the Sankhuwasabha district of Nepal. In 1995, under pressure from environmental groups, the World Bank withdrew its financing package for a smaller 201MW version of the Arun III project. Last year, Nepal invited private investors to develop the 402MW version of the facility.

The US firm was selected from among three bidders who applied to develop the project. Other competitors were Canadian ASTQ Holdings Corporation and Nepal’s Susasun Power Company.