Nepal and China signed the first outline of the BRI (Belt and Road Initiative) in May 2017, but not a single project under it has been implemented yet.
Lack of money or India’s opposition is believed to be one of the reasons for this. Now Nepal has also made its stand clear regarding this. Actually, Nepal has told China that it cannot take loan for BRI.
Nepal’s Foreign Minister Arju Rana Deuba has clearly told China that Nepal is currently not in a position to take any kind of loan and the country will depend on grants only.
Deuba made this statement on Saturday at Tribhuvan International Airport after returning from a three-day visit to China.
purpose of trip to china
Foreign Minister Deuba described the talks held with his Chinese counterpart in Chengdu on Friday as part of efforts to strengthen bilateral relations at all levels. He also said that this conversation was very important before the upcoming visit of Prime Minister KP Sharma Oli to China.
Prime Minister Oli will discuss issues like connectivity, trade and tourism with China during his visit. In particular, talks are also expected to be held on re-operationalizing the border posts which were closed after the 2015 earthquake.
Threat to coalition government
Nepali Congress leader Deuba warned China that if debt-based agreements are made on BRI projects, it could create trouble for Prime Minister Oli’s coalition government. Deuba is the only minister in the Prime Minister’s 44-member delegation and made it clear that his party will not accept any compromise that goes beyond the scope of domestic politics. This clear stand of Deuba before Prime Minister Oli’s visit to China points towards an important direction in Nepal-China relations.
Now it remains to be seen what issues are agreed upon between Nepal and China during Oli’s visit.
Two days ago, a senior Nepali Congress leader had said that Nepal can accept grants and technical assistance from China under the BRI arrangement, but not loans. This comment by Nepali Congress (NC) leader and former Finance Minister Prakash Sharan Mahat has come a few days before Prime Minister KP Oli’s visit to China starting from December 2.
Nepali Congress is part of the ruling coalition led by Communist Party of Nepal (UML) president Oli.
The Congress leader said Nepal can seek assistance from China under BRI for roads and connectivity, but its priority should be grants or technical assistance. “We need to consider our national interest as well as assess our need before signing any agreement,” he said.
India has been opposing BRI. The BRI is a pet project of Chinese President Xi Jinping, which aims to increase China’s global influence with investments in building infrastructure projects.
New Delhi has protested against Beijing over the construction of the China-Pakistan Economic Corridor (CPEC) at a cost of US $ 60 billion. CPEC is the flagship project of BRI.
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