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KATHMANDU, Jan. 20 (Xinhua) -- Investment Board Nepal (IBN) has announced that it signed a Memorandum of Understanding (MoU) with a consortium between Power Construction Corporation of China and Nepal's Hydroelectricity Investment and Development Company Limited to develop the 756 MW Tamor Storage Hydroelectricity Project in eastern Nepal.

The Nepal-China joint venture (JV) company was selected to develop the project during the Nepal Investment Summit held here in March last year.

Hydroelectricity Investment and Development Company is Nepal's state-owned company. The IBN facilitates the large scale domestic and foreign investments in Nepal.

"As per the MoU, the Nepal-China JV company will submit the Detailed Feasibility Study Report to IBN in 24 months from Sunday," the IBN announced in a social media post on Sunday.

IBN's spokesperson Balaram Rijyal told Xinhua on Sunday that after the JV company completes the Detailed Feasibility Study, it would be allowed to develop the project.

"The Detailed Feasibility Study will determine the estimated cost of developing this project," said Rijyal.

IBN officials said they believed the project is one of the most attractive projects available at the moment. The project will cover three districts of eastern Nepal -- Taplejung, Terhathum and Panchthar of Province 1.

The Himalayan country which is rich in water resources, is seeking to attract domestic and foreign investment in the hydropower sector as it aims not only at domestic consumption but also at exporting power to other regional countries.

Nepal has established cross-border transmission lines with India, and is also working to develop cross-border power line with China.

China was the largest foreign direct investment source to Nepal in the past four years, according to Nepal's Department of Industry.