Nepal, China sign agreement on Belt & Road Initiative

Nepal has recently signed a framework agreement with China on the Belt and Road Initiative, marking a renewed commitment to cooperation on projects after an initial pact signed seven years ago showed no progress.

Prime Minister K.P. Sharma Oli is currently in Beijing on a four-day visit, his first trip abroad since taking office in July. This visit breaks tradition as he did not visit New Delhi first, despite Nepal’s long-standing ties with India.

Nepal and China signed an initial deal in 2017 for President Xi Jinping’s Belt and Road Initiative, aimed at enhancing China’s infrastructure and trade connections globally. However, due to a lack of cooperation framework and challenges in gaining political consensus in Nepal, no projects have been initiated in the past seven years.

The recent signing of the deal indicates that both countries will now progress towards finalising project details, such as road upgrades, transport corridors, and financing options.

Debt concerns have sparked debate within Oli’s coalition government, with the Nepali Congress party, a key supporter of Oli, against any loan-funded projects.

China has loaned Nepal $216 million to build an international airport in Pokhara, the second-largest city located 125 km (80 miles) west of Kathmandu. The airport began operating last year.

Attribution: Reuters

Subediting: M. S. Salama

Leave a comment