The government formed in 2048 BS had introduced a policy to attract private investment in the construction of power projects. Based on that policy, the government's strategy was to attract not only Nepali but also foreign investment.

Initially, a plan was put forward to build the 402 MW Arun III Hydropower Project in two phases in Sankhuwasabha with the help of a loan from the World Bank.

But in the 1950s, political parties, domestic and foreign NGOs and stakeholders raised their voices against Arun from the streets to the parliament. Due to their opposition, the future of Arun was uncertain. This led to a kind of distrust among foreign investors.

The government was under pressure to build power projects to solve the energy crisis in the country. At that time, private banks in Nepal were not ready to invest openly in power projects. Private sector banks had just opened. There was also no large capital.

After the future of Arun was uncertain, the government was constantly trying to raise foreign assistance for the construction of the Khimti First Hydropower Project to generate 60 MW of electricity from the border rivers of Dolakha and Ramechhap. In line with the same effort, it was decided to invest foreign investment in the electricity sector in Nepal for the first time.

It was decided that the International Finance Corporation, Asian Development Bank, Export Finance and Nordic Development Fund would invest 126.283 million US dollars and 30 million Norwegian kroner in the Khimti project. Construction began after signing a contract between Himal Power Limited and international lenders to provide the loan.

After the Khimti project was in the construction phase, preparations were made to build the 36 MW Upper Bhotekoshi Project with American investment in Sindhupalchowk. Subsidiaries of Panda Energy International and Harja Engineering Company International of the United States were ready to invest for the construction of the project.

Himal International Power Company had prepared for the construction of the project in Nepal. An agreement was signed between the government and Bhotekoshi Power Company Private Limited in Kathmandu on 2053 Shrawan 6 for the construction of the project.

The agreement was signed by Vijay Shankar Shrestha, then Director General of the Power Development Center, on behalf of the government, while the power purchase agreement was signed by Kirtichandra Thakur, Executive Director of the Nepal Electricity Authority, and Robert W. Carter, Chairman of the company, on behalf of the Bhotekoshi Power Company. This was the second power project to be built with domestic and foreign investment. Preparations were made to build a 25-km-long single-circuit 132-kilovolt transmission line to the Sunkoshi Power House in Lamosanghu to connect the electricity generated from the project to the national grid.

A dam and a power house were built at Dashkilo, a place connected to the Araniko Highway in the former Tatopani Rural Development Committee, and private sector investment was brought in by preparing to generate electricity from the Bhotekoshi River. The cost of the project was 98 million US dollars. It was estimated that 30 percent of the total cost would be invested by the project managers and the remaining 70 percent would be provided as a loan from the International Finance Corporation under the World Bank and other financial institutions.

At that time, there was no policy of giving shares to locals in power projects. The provision that the NEA should pay in US dollars while purchasing the generated electricity was opposed at that time. It was analyzed that this would impose a huge financial burden on the NEA since it was agreed to pay in dollars when making the Power Purchase Agreement (PPA).

The project was completed in 2057 and electricity production started. The project is currently generating 45 megawatts of electricity. The NEA is selling the 9 megawatts of electricity not mentioned in the agreement at a price 50 percent lower than the initial agreement.

Currently, the American company, the investor in the project, has left with only 5 percent of its shares. Now 95 percent of the shares are owned by Nepalis. After the American investor Panda Energy Company sold its investment, Tara Management of Nepali businessman Siddharth Shamsher Rana bought the shares.

The project will now have to be handed over to the NEA after 5 years and to the government after another 6 years. The news prepared by the National News Committee (NRC) focusing on the investment agreement for the Upper Bhotekoshi Project, which is being built by attracting foreign private sector in Nepal, was published in Kantipur Daily on 2053 Shrawan 7 under the title 'Signing of Bhotekoshi Hydropower Development Agreement'.