Nepal and China Sign Revised Belt and Road Cooperation Framework

05 Dec 2024 CW Team

Nepal and China have signed a revised framework for the Belt and Road Initiative (BRI), replacing the term "grant financing" with "aid financing," a move that allows for greater flexibility in funding options, including both grants and loans. The agreement was formalised during a ceremony in Beijing, attended by senior officials from both countries, as confirmed by Nepal's Ministry of Foreign Affairs on social media platform X. The language change comes after China declined Nepal's proposal for Beijing to fully fund BRI projects through grants, rejecting Kathmandu's stance against taking loans under the initiative. This framework agreement was a key focus of Nepalese Prime Minister K.P. Sharma Oli’s official visit to China, which concludes on December 5. Photos released by Nepal’s Ministry of Foreign Affairs show the framework being signed by the foreign secretaries of both nations. Negotiations to finalise the framework included informal discussions on December 3 to reach a compromise. Prime Minister Oli expressed optimism about the agreement, stating on X, "Nepal-China economic cooperation will further strengthen under the Belt and Road Framework Cooperation." He also highlighted his productive discussions with Chinese Premier Li Qiang, NPC Chairman Zhang Leji, and President Xi Jinping during his visit. The revised framework addresses concerns raised by Nepal’s political opposition, particularly the Nepali Congress, which opposes loans under the BRI. Nepal has prepared a list of projects to be funded solely through grants, prompting China to amend the draft framework by replacing "grant financing" with the broader term "aid financing." Although no final decisions on project financing were made during Oli’s visit, discussions between Nepali Foreign Minister Arzu Rana and Chinese officials explored possibilities for loan-based funding for some BRI projects. A joint statement released on December 3 indicated both nations’ intent to formalise agreements on the Trans-Himalayan Multi-Dimensional Connectivity Network (THMDCN) and the Belt and Road Cooperation framework soon. This agreement is expected to shape future Nepal-China economic collaboration and advance connectivity and development initiatives under the BRI. (ET)

Nepal and China have signed a revised framework for the Belt and Road Initiative (BRI), replacing the term grant financing with aid financing, a move that allows for greater flexibility in funding options, including both grants and loans. The agreement was formalised during a ceremony in Beijing, attended by senior officials from both countries, as confirmed by Nepal's Ministry of Foreign Affairs on social media platform X. The language change comes after China declined Nepal's proposal for Beijing to fully fund BRI projects through grants, rejecting Kathmandu's stance against taking loans under the initiative. This framework agreement was a key focus of Nepalese Prime Minister K.P. Sharma Oli’s official visit to China, which concludes on December 5. Photos released by Nepal’s Ministry of Foreign Affairs show the framework being signed by the foreign secretaries of both nations. Negotiations to finalise the framework included informal discussions on December 3 to reach a compromise. Prime Minister Oli expressed optimism about the agreement, stating on X, Nepal-China economic cooperation will further strengthen under the Belt and Road Framework Cooperation. He also highlighted his productive discussions with Chinese Premier Li Qiang, NPC Chairman Zhang Leji, and President Xi Jinping during his visit. The revised framework addresses concerns raised by Nepal’s political opposition, particularly the Nepali Congress, which opposes loans under the BRI. Nepal has prepared a list of projects to be funded solely through grants, prompting China to amend the draft framework by replacing grant financing with the broader term aid financing. Although no final decisions on project financing were made during Oli’s visit, discussions between Nepali Foreign Minister Arzu Rana and Chinese officials explored possibilities for loan-based funding for some BRI projects. A joint statement released on December 3 indicated both nations’ intent to formalise agreements on the Trans-Himalayan Multi-Dimensional Connectivity Network (THMDCN) and the Belt and Road Cooperation framework soon. This agreement is expected to shape future Nepal-China economic collaboration and advance connectivity and development initiatives under the BRI. (ET)

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