Nepal Signs BRI Cooperation Framework With China During PM Oli's Beijing Visit—What You Need To Know

Nepal has signed a framework agreement with China to advance the Belt and Road Initiative (BRI), Nepali foreign ministry announced on Wednesday (4 December).

This pact comes seven years after the initial agreement was signed in 2017, marking a significant step toward implementing China’s controversial global connectivity programme.

The BRI Cooperation Framework agreement was signed during Nepali Prime Minister K P Sharma Oli's visit to China—his first since assuming office for the fourth time.

While the 2017 agreement laid the groundwork, no projects have yet been implemented.

Notably, the details of the latest framework remain undisclosed.

A joint statement released on Tuesday stated, “The two sides expressed their readiness to sign the MoU on building the Trans-Himalayan Multi-Dimensional Connectivity Network (THMDCN) and the framework for Belt and Road Cooperation between the two governments as soon as possible,” without specifying a deadline.

According to The Kathmandu Post, China replaced the Nepali side's proposal for the term “grant” with “investment” for funding BRI projects, sparking debate within Nepal.

Prime Minister Oli invited investors, emphasising, "The atmosphere is favourable for investment in Nepal, which has made its way towards an era of political stability and prosperity."

However, debt concerns loom large.

The Nepali Congress party, a coalition ally, opposes reliance on loans under the BRI and has signalled potential withdrawal of support for Oli's government over this issue.

China’s prior projects in Nepal include the Pokhara International Airport, built with a $216 million BRI loan. Despite being touted as a success, operational challenges persist due to India’s airspace restrictions.

Oli’s visit to China, bypassing the tradition of first visiting India, has stirred diplomatic chatter.

However, he had clarified, “There is no reason that his China visit will harm ties with India."

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