प्रधानमन्त्रीको चीन भ्रमणः ल्हासामा सुन छ, कान मेरो बुच्चै

प्रधानमन्त्री पुष्पकमल दाहाल आफ्नो एक साता लामो चीन भ्रमणपछि शनिबार ल्हासाबाट काठमाडौं फर्कदै छन् । तर, जम्बो सरकारी टोली लिएर तामझामका साथ गत शनिबार न्यूयोर्कबाट सिधैं चीन पुगेका प्रधानमन्त्री दाहालको उत्तरी छिमेकीको भ्रमण भने ‘ल्हासामा सुन छ, कान मेरो बुच्चै’ भनेझैं भएको छ ।

व्यापारविद् पुरुषोत्तम ओझाकाअनुसार पहिला-पहिला भएका सम्झौताका विषयहरुमात्र दोहोरिने तर कार्यान्वयनमा नजाने कमजोरीका कारण नेपालको चीनसँगको व्यापार घाटा चुलिदो छ ।

व्यापार तथा निर्यात प्रवर्धन केन्द्रको तथ्यांकअनुसार गत आर्थिक वर्षमा चीनसँग नेपालको व्यापार घाटा २ खर्ब २० अर्ब ९५ करोड छ । नेपालले गत आर्थिक वर्ष २०७९/ ८० मा चीनतर्फ १ अर्ब ७६ करोडको मात्र वस्तु निर्यात गरेकोमा चीनबाट भने २ खर्ब २२ अर्ब ७१ करोडको वस्तु आयात गरेको थियो ।

२०७२ सालको भूकम्पपछि नै चीनतर्फका नाका नियमित सञ्चालन भएनन् । कहिले भूकम्प, कहिले कोरोना त कहिले अन्य कारणले सिन्धुपाल्चोकको तातोपानी तथा रसुवाको केरुङ नाका नियमित सञ्चालनमा नआउँदा चीनतर्फ नेपालको निर्यात खुम्चेको छ । ‘नेपालले चीनमा पनि विशेषतः तिब्बतमा निर्यात गर्ने हो’, ओझा भन्छन्, ‘तर चीनको नाकाबन्दीले तिब्बततिरको निर्यात घट्दा समग्रमा नै नेपालको निर्यात खुम्चेको हो ।’

केन्द्रको तथ्यांकअनुसार गत एक दशकमा नेपालले सबैभन्दा धेरै निर्यात आव २०७४/७५मा गरेको छ । आव २०७४/७५ मा २ अर्ब ४७ करोडको निर्यात गरेको नेपालले त्यसअघि वा त्यसपछि पनि गत आवसम्ममा २ अर्बको निर्यात गर्न हम्मे हम्मे परेको देखिन्छ ।

तर आयात भने विगत एक दशकमा नै १ खर्बभन्दा बढी मात्र नभएर कुनै आवमा साढे २ खर्ब पनि नाघेको छ । साढे २ खर्ब र जम्मा २ अर्बको बीचको व्यापारको खाडल मेट्न ६ जना मन्त्री सहितको प्रधानमन्त्री भ्रमणको जम्बो सरकारी टोलीले घुमघामबाट फुर्सद् पाए कि पाएनन् होला, आगामी दिनमा देखिने नै छ ।

व्यापारविद् ओझाकाअनुसार व्यापार अभिवृद्धिको पहिलो शर्त नै सहज सडक सञ्जाल हो । नेपालले चीनसँगको व्यापार बढाउन नाकासम्म पुग्ने अत्यावश्यक सडक निर्माण तथा स्तरोन्नतीमा जोड दिन सकेको छैन । हरेक पटक काठमाडौं वा बेइजिङबाट हुने उच्चस्तरीय भ्रमण अगाडि तथा पछाडि केहि दिन यी नाका खुल्छन् फेरि बन्द भै हाल्छन् ।

यसपटकको संयुक्त वक्तव्यमा पनि नेपाललाई भूपरिवेष्टित मुलुकबाट भू–जडित मुलुकमा परिणत गर्न चीनको पारवहन यातायात र राजमार्गको उपयोगसम्बन्धी यसअघि हस्ताक्षर गरिएका सहयोगसम्बन्धी दस्तावेजहरू कार्यान्वयनलाई निरन्तरता दिन दुबै पक्ष सहमत भएका छन् ।

संयुक्त वक्तव्यका अनुसार नेपालको आवश्यकतालाई मध्यनजर गर्दै अरनिको राजमार्ग मर्मतसम्भार आयोजनाको चौथो चरणको काम सुरू गर्न चिनियाँ पक्ष तयार भएको छ । त्यस्तै, स्याफ्रुबेसी–रसुवागढी राजमार्ग मर्मतको काम चाँडो सुरु गर्न पनि चिनियाँ पक्ष सहमत भएको छ ।

हरेकपटका उच्चस्तरीय भ्रमणमा उहि कुराहरु आउँछन् तर कार्यान्वयनको तहसम्म आइपुग्दैनन् । जस्तै, करिब एक दशकदेखि केरुङ नाकाबाट हुने व्यापार सहजीकरणको लागी स्याफ्रुबेशीको बाटो स्तरोन्नतीको चर्चा भइरहेको छ तर कार्यान्वयन भएको छैन । यसैगरि, तातोपानी नाका पुग्ने बाटोको दूरावस्थामा पनि परिवर्तन आएको छैन ।

लिजी–नेचुङ बन्दरगाह सञ्चालन र यात्रु सेवाका लागि झाङ्मु–खासा बन्दरगाह पुनः सञ्चालन गरिएकोमा काठमाडौं बेइजिङ दुबै पक्षले स्वागत गरेका छन् । लिजी–नेचुङ बन्दरगाहमा नेपाली पक्षको सुविधाका लागि यथाशीघ्र सुधार गर्न सहयोग गर्ने प्रतिवद्धता पनि चिनियाँ पक्षले जनाएको छ ।

पुलान र जिलोङ बन्दरगाहमा यात्रु र कार्गो सेवाको सहज तथा व्यवस्थित सञ्चालनका लागि दुबै पक्षले प्रशंसा गरेका छन् । वक्तब्यकाअनुसार परम्परागत रूपमा सञ्चालन भइरहेका चीन–नेपाल सीमा व्यापार नाकाहरू पुनः खोल्न पनि चीन सहमत भएको छ । चेन्ताङ–किमाथाङ्का, रिवु–ओलाङचुङ्गोला बन्दरगाहलाई छिट्टै खोल्नका लागि निरन्तर सम्पर्क गर्ने विषयमा दुबै पक्ष सहमत भएका छन् ।

यसपटक पनि दुई देशबीचको यातायात सञ्जाल बिस्तार गर्न टोखा–छहरे सुरूङमार्गको सम्भाव्यता अध्ययन चाडो टुङ्गाउन, काठमाडौंको दोस्रो चरणको चक्रपथ विस्तार आयोजनालाई तीव्र गतिमा अघि बढाउन दुबै देश सहमत भएका छन् ।

साथै, जिलोङ–केरुङ–काठमाडौं अन्तरदेशीय रेलवेको सम्भाव्यता अध्ययनको प्रगतिप्रति सन्तुष्टि जनाउदै चीन–नेपाल रेलवे सहयोगसम्बन्धी आठौं कार्यदलको बैठक यथाशक्य चाँडो गर्नेमा पनि नेपाल–चीनबीच सहमति भएको छ । चिनियाँ पक्षले नेपालमा रेलवेसग सम्बन्धित तालिम दिन पनि तयार भएको छ ।

विगतको अनुभवका आधारमा भन्ने हो भने, यो संयुक्त वक्तव्यको मसी सुकिसक्दा पनि कार्यान्वयनमा भने न काठमाडौं न बेइजिङ, दुबैले त्यति वास्ता गर्ने छैनन् । र अर्को उच्चस्तरीय भ्रमणमा यी बुँदाहरु फेरि पनि दोहोरिने छन् ।

तर, बाटो सहज हुँदैमा मात्र नेपालको निर्यात बढ्ने होइन, झनै आयात बढ्न पनि सक्छ, व्यापारघाटाको खाडल झन् बढ्न सक्छ । त्यसैले निर्यात बढाउन चिनियाँ बजारलक्षित नेपाली वस्तुको उत्पादनमा पनि जोड दिनु आवश्यक छ ।

चीनले नेपालसहितका अतिकम विकसित मुलुकहरूबाट निर्यात हुने ९८ वस्तुहरूमा भन्सार शुल्क शून्य सुबिधा दिएको छ । त्यसबाहेक पनि चीनले नेपालका करिब ८ हजार वस्तुको निर्यातमा भन्सार शुल्क मिनाहा गरेको छ । तर, त्यसको फाइदा नेपालले उठाउन सकेको छैन । किनकि नेपालमा ती भन्सार शुल्क मिनाहामा सूचीकृत वस्तुहरुको गुणस्तरीय उत्पादन तथा चिनियाँ बजारको मागअनुरुपको परिमाणमा निर्यात गर्न सक्ने क्षमता छैन ।

चिनियाँ बजारको मागअनुरुपको परिमाण तथा गुणस्तरमा नेपाली वस्तु उत्पादकहरुको चासो तथा रुची नभएको उद्योग मन्त्रालयका एक अधिकारीले बताए । उनका अनुसार नेपाली वस्तु निर्यातमा भएका क्वारन्टाइनमा समस्या तथा गैरभन्सार अवरोध त छँदैछ, त्यसबाहेक पनि नेपालका आफनै कमजोरी पनि चीनतर्फ नेपाली निर्यात नबढ्नुको कारण हो ।

यसका साथै, चीनसँग निरन्तर व्यापार नबढ्नुको कारण भने नेपाली तथा चिनियाँ मुद्राबीचको परिवर्त्य दर पनि एउटा प्रमुख कारण रहेको मन्त्रालयको अध्ययन रहेको उनको भनाइ छ ।

त्यसैले चीन भ्रमणमा रहेका प्रधानमन्त्री दाहाल र उनका चिनियाँ समकक्षी ली छ्याङबीच प्रतिनिधिमण्डलस्तरीय वार्तापछि जारी संयुक्त वक्तव्यमा व्यापार प्रवर्द्धन तथा सहजीकरण, कूटनीतिक सम्बन्ध विस्तार तथा क्षेत्रीय सहयोगका लागि सहकार्य गर्ने विषयमा सहमति भएको भनिए पनि कुटनीतिकरुपमा यस्ता वक्तव्यको अर्थ त होला तर काठमाडौं र बेइजिङबीच देखिने गरि आर्थिक सम्बन्ध कसिलो हुनुको साटो ब्यावहारिकरुपमा झन् खुकुलो हुँदै गएको पाइन्छ ।

राजनीति हाबी, आर्थिक कूटनीति फेल

व्यापारमात्र नभएर नेपालमा चीनको लगानी पनि उल्लेख्य आएको देखिन्न । नेपाल राष्ट्र बैंकको आर्थिक अनुसन्धान विभागले गरेको अनुसन्धान प्रतिवेदनका अनुसार २०७९ असार मसान्तसम्ममा नेपालमा ५७ देशको प्रत्यक्ष वैदेशिक लगानी रहेकोमा चीन दोस्रो स्थानमा छ । तर, पहिलो हुने भारत र दोस्रो हुने चीनबीच लगानी रकममा दोब्बरभन्दा बढी फरक छ ।

प्रतिवेदनका अनुसार भारतबाट सबैभन्दा बढी ८८ अर्ब ५९ करोड वैदेशिक लगानी आउँदा चीनबाट जम्मा ३३ अर्ब ४५ करोडमात्र लगानी आएको छ ।

कुनै समय नेपालमा भित्रने वैदेशिक लगानीमा पहिलो स्थानमा रहेको चीन पछिल्ला वर्षहरुमा नेपालमा लगानी बढाउन चासो नदिनु नेपालप्रति चीनको विश्वासमा आएको कमी तथा नेपालको कमजोर आर्थिक कूटनीतिको परिणाम हो ।

जसका कारण पछिल्ला वर्षहरुमा उत्तरी छिमेकि नेपालको विकासमा भन्दा पनि राजनीतिमा बडि सकृय रहेको आरोप लाग्न थालेको छ । विश्वको एक नम्बर अर्थतन्त्र बन्ने लक्ष्यका साथ अगाडि बढेको छिमेकिबाट नेपालले कुनै आर्थिक फाइदा लिन नसक्नुमा नेपालका राजनीतिक दल अनि नीति निर्माताको पनि असफलता हो । (https://clickmandu.com/2023/09/268812.html)

PM Dahal inaugurates Pokhara Regional International Airport

The construction of Nijgadh International International Airport will begin soon, according to the Prime Minister.

Inaugurating Pokhara Regional International Airport (PRIA) today, Prime Minister Pushpa Kamal Dahal 'Prachanda' said that air route is the most effective way for connectivity for land-locked countries like Nepal. Thus, the construction of Nijgadh International Airport is important, he added.

The proposed Nijgadh International Airport has been claimed to an alternative to the already congested Tribhuvan International Airport (TIA), though, the conservation activists have opposed to the construction of airport by destroying one of the best-preserved forests in the Tarai Madhesh.

The Supreme Court, on May 26, 2022, issued a verdict telling the government not to construct the proposed Nijgadh airport. The full text of the verdict clarified the apex court did not rule out the possibility of constructing the airport in Nijgadh of the Bara district in southern Nepal.

Following that, a government-commissioned panel has suggested that Nijgadh is the best option for constructing the next international airport in the country.

The international airport project conceptualised several years ago turned controversial with conservationists opposing it. They have also been condemning the government’s plans to cut down 2.4 million trees and destroy an entire ecosystem.

Nepal’s first international airport TIA in Kathmandu is 71 years old, whereas the second international airport Gautam Buddha International Airport (GBIA) in Bhairahawa was inaugurated in May 2022.

On the occasion of Gregorian New Year, Dahal inaugurated Pokhara Regional International Airport, which is the country's third international airport that started domestic flights from today, and will start international flights from Frebruary.

Saying that Shankar Raj Pathak, the man who conceptualised Pokhara International Airport, is his teacher, Dahal also praised him. 

Pokhara Metropolitan City has declared a public holiday today to celebrate the inauguration, and also felicitated the architect of the international airport Pathak with a chariot ride.

Urging the Chinese government to extend support in construction of projects including the railway service and in easing the trade by opening the transit points, he also opined that there could not be two opinions that the operation of the international airport in Pokhara will contribute to the economic development of the entire nation along with that of the Gandaki province.

Pokhara, the tourism capital of Nepal and also the capital of Gandaki province, is expected to get more tourists after the new airport starts international flights.

The government will provide support for operation of Pokhara International Airport, said deputy prime minister and finance minister Bishnu Prasad Poudel, On the occasion.

Addressing the inaugural ceremony, he also promised provide maximum government support for construction of other remaining infrastructures for the new airport.

Likewise on the occasion, Gandaki province chief minister Krishna Chandra Pokhrel urged the Chinese government to transform the loan it provided for the Pokhara Regional International Airport into grants.

"I urge the government of China through the Chinese Embassy here to convert the 75 per cent of the total loan into grants," he said. "With the completion of the project, the 47-year-long dream of Pokhara folks had come true."

In first phase, the airport should have its services for the South Asia and in the second phase for the Western countries, Pokhrel said, adding hoping the tourist arrival in the lake city will significantly increase with the operation of new airport. “Now Pokhara should focus on lengthening the tourist stay at least for 15 days."

Nepal had signed a $215.96 million (around Rs 22 billion) soft loan agreement with China in March 2016 for the construction of the new airport in the lake city.

However, the new airport constructed with loan assistance from the Chinese government has been claimed by the Chinese Embassy in Kathmandu, to be the support project that falls within the Belt and Road Initiative (BRI). 

The spokesperson at the Embassy of China in Kathmandu claimed that the Pokhara Regional International Airport is the flagship project of China-Nepal BRI cooperation. "The inauguration ceremony of Pokhara International Airport will be held at 11 am tomorrow (Sunday), the spokesperson wrote on Twitter yesterday, "This is the flagship project of China-Nepal BRI cooperation," it reads, adding that the Embassy warmly congratulates to Nepali Government and Nepali people. "The newly-built airport is designed and built in accordance with the standards of China and the International Civil Aviation Organization, which reflects the quality of Chinese projects, symbolises the national pride of Nepal, and becomes a remarkable sign for China and Nepal to jointly build the Belt and Road Initiative."

“The new airport not only facilitates personnel exchanges between Nepal and China and other countries, but also proves the true friendship and mutual assistance between the two countries in times of adversity,” the tweeter reads.

"The PRIA is a matter of pride for Pokhara as the airport is the decade-long dream of the residents of Pokhara," according to Pokhara metropolis Mayor Dhana Raj Acharya. "As the airport will prove to be a milestone in the promotion of tourism in this region, it is necessary to convey the message of the grand opening to the whole world."

"Pokhara is a major tourist destination in the country and the tourism sector will benefit immensely with the operation of the new international airport, chairman of the Pokhara Tourism Council Pomnarayan Shrestha said, adding that the new airport is expected to bring a big relief to the tourism sector. "Along with the international airport, we will make a promotional campaign around the world to bring in more tourists in Pokhara."

Constructed by the Chinese construction company CAMCE, the regional international airport was handed over to Nepal last March, during the visit of Chinese foreign minister Wang Yi to Nepal.

Kerung-Kathmandu railway detailed feasibility study report in 42 months

The visiting Chinese experts team is hopeful to overcome difficulties in construction of Kerung-Kathmandu railway, and submit the detailed feasibility study report in 42 months.

The cross-border railway crosses the Himalayas, where terrain and geological conditions are extremely complex," a Chinese railway expert Feng Dequan has been quoted by China's Xinhua News Agency as saying, "The project has world-class engineering difficulties."

Feng-led six-member Chinese experts team came to Nepal on Tuesday to carry out feasibility study of the cross-border railway.

However, unlikely to the earlier Chinese experts team, the team led by Feng, said that they will closely work with the Nepali side to overcome difficulties to construct trans-Himalayan railway.

The cross-border railway project, which is proposed to be built under the Belt and Road Initiative (BRI), will connect Tibetan Autonomous Region of China with Kathmandu.

Feng said that his team will make full use of China's advanced technology and rich experience in constructing railways in difficult and complex mountainous and plateau areas, closely cooperate with top scientific research institutions in China and Nepal.

"As the first batch of experts, our arrival in Kathmandu marks new progress in the feasibility study project," Xinhua quoted Feng as saying. 

The feasibility study that will be carried out by the China Railway First Survey and Design Institute Group, is estimated to take at least 42 months. 

Likewise, the estimated cost for the feasibility study of the 72-km cross-border railway is also expected to be around Rs 3.4 billion.

China has already linked Kerung with the Lhasa-Shigatse railway line on the Chinese side. Extending the railway line cross border from Shigatse, China is keen on linking it to Kathmandu and Lumbini.

But according to the Department of Railways, the railway line will originate from Kerung and connect Kathmandu via Rasuwagadhi.

The Chinese team is expected to complete the study and submit its report in next 42 months, according to the director general at the Department of Railways Rohit Kumar Bisural.

"As previously agreed, the team will conduct the study at its own expense and Nepal will provide them security and facilitation,” he said, adding that the project is expected to move forward. "The Chinese team held a consultation with us in this regard."

The study of the railway line will be carried out in such a way that the track will bifurcate towards Nepal from the railway track going towards Mansarovar of Tibet from a lake above Kerung, Bisural claimed.

Earlier, the Chinese government had sent a Letter of Undertaking (LoU) - that was approved by Nepal on December 22 - to Nepal on the basis of an agreement reached five years ago.

The Department of Railways forwarded the document to the Finance Ministry for necessary action but it was delayed for a long time due to various reasons, the department complained.

The pre-feasibility study of the railway was conducted in November 2018 and an agreement for carrying out the feasibility study was reached during the visit of Chinese President Xi Jinping to Nepal a year later on October 12-13 in 2019.

Likewise, a memorandum of understanding (MoU), for expediting the feasibility study, was also reached during the visit of Chinese foreign minister Wang Yi's to Nepal in March 2022. However, Covid-19 pandemic delayed the feasibility study of railway project.

Though, Nepal and China held discussion after the National Railway Administration of China submitted the preliminary study report to the government, the feasibility study report will pave the way to do further action.

The detailed feasibility study will be based on the pre-feasibility study report that had incorporated geographical study from Kathmandu-Kerung via Trishuli, topographical features, among others.

According to the preliminary report, construction of the trans Himalayan railway is not going to be easy due to complex geographical territory. "Most of the railway line will be inside the tunnel," the report reads, adding that some 99 per cent of the railway line will be inside Nepal."

However, for the operation of cross-border railway, Transit and Transport Agreement - one of the important documents - was also signed during the China visit of President Bidya Devi Bhandari.

Trans Himalaya Multi-Dimensional Connectivity Network and Nepal-China Cross-Border Railway is expected to be great help for Nepal in expansion of connectivity network with the northern neighbour.

Chinese experts team arrives Nepal for detailed study of Kerung-Kathmandu railway

It may just be a coincident as just a day after Pushpa Kamal Dahal ‘Prachanda’ took oath of the Office of the Prime Minister, a Chinese experts team has arrived in Kathmandu to carry out the detailed feasibility study of the Nepal-China international railway.

Only yesterday, an 8-member cabinet was formed under the leadership of Dahal, chairman of the CPN-Maoist Centre. 

The Chinese Embassy in Kathmandu has confirmed that Chinese experts has come to Kathmandu to study and survey the feasibility of the Nepal-China international railway. They arrived in Nepal to conduct a detailed study of the Kathmandu-Kerung railway, the Embassy confirmed, adding that the team will study the geological features, tunneling, earthquake risk.

The Kerung-Kathmandu railway is one of the nine development projects proposed by Nepal with China to be constructed under the Belt and Road Initiative (BRI), but has not moved forward due to Covid-19. However, none of the nine projects have gained momentum till date. The Kerung-Kathmandu Railway and 'Trans Himalayan Multi-Dimensional Connectivity Network' were also included in the joint statement issued after the Second Belt and Road Forum held in Beijing in April 2019, where President Bidya Devi Bhandari took part.

An agreement on the railway project was also reached during the visit of Chinese President Xi Jinping to Nepal in October 2019. He had promised that China will help turn land-locked Nepal into a ‘land-linked country’ by boosting connectivity between the two countries. But the Covid-19 pandemic played a spoil sport. During Chinese foreign minister Wang Yi's visit to Nepal last March, Nepal and China again signed an agreement on providing technical assistance for the feasibility study of the railway. He also promised to provide grants for feasibility studies of the cross-border railways.

Nepal and China had also held a discussion about the construction of a cross-border railway, in the second week of last August. In a bilateral meeting between foreign minister Narayan Khadka and his counterpart Wang Yi in Qingdao, Wang reiterated his commitment to grant funding for the railway's feasibility study. He even promised to send a team of Chinese experts. According to the agreement, the Chinese government agency China International Development Cooperation Agency (CIDCA) has written a letter to the Finance Ministry too. The CIDCA, under the State Council of China, coordinates development projects and aid with other countries. 

However, there are lots of technical complications in construction of the cross-border railway including cost to bring a train from Shigatse in Tibet to Nepal through high mountains terrain and gorges. Though it is estimated that the construction cost per kilometre is about 200 million yuan ($29.68 million), the difficult geography including Himalayan terrain with high earthquake risks are considered major hurdles. But once constructed, the railway line is expected to shorten transit time by as much as three weeks to transport goods from cities such as Chongqing, Beijing or Shanghai, though, it is expected to cost at least $3 billion, too large a bill for Nepal to foot.

According to the senior divisional engineer and spokesperson at the Railway Department Aman Chitrakar, the feasibility study on the construction of the Kerung-Kathmandu railway will be expedited in collaboration with the visiting Chinese experts team. "The visiting team will carry out the detailed feasibility assessment of the project in coordination with the department."

According to a press note issued by the Chinese Embassy in Kathmandu. the railway line is an integral part of the BRI between China and Nepal. "China gives priority to Nepal’s aspiration and needs in this regard, and will proactively push ahead with the feasibility study with China aid fund," it reads, adding that the two countries will maintain close contact and coordination in jointly carrying out the work ahead with a view of building a trans-Himalayan multi-dimensional connectivity network.

Though, Nepal and China repeatedly agreed to carry out the feasibility study for the construction of a cross-border railway, the investment modality and technical aspects are yet to be agreed upon. Fearing to be debt-trapped, former Prime Minister Sher Bahadur Deuba has also clarified that Nepal will construct the cross-border railway, if China constructs it under grant. "Nepal can not take loan to construct the cross border railway line, he has explained.

But once constructed, the railway is expected to bring Tibetan Autonomous Region of China and Nepal's capital Kathmandu much closer. China has already constructed Lhasa-Shigatse railway line on the Chinese side that will link Kerung. It is also expected that the Kerung line will ultimately extend to the Indian border, linking two Asian economic giants via Nepal.

Trans-Himalayan connectivity key for Nepal's development

The trans-Himalayan connectivity is key to Nepal's development and prosperity, according to deputy prime minister and defence minister Ishwor Pokharel.
Addressing one-day conference on ‘Friends of Silk Road Trans-Himalaya Connectivity Cooperation for Shared Prosperity’ organised by Trans- Himalaya Development Center in the Kathmandu, he said that connectivity along the trans-Himalayan region is crucial for Nepal's development.
Saying that adequate discussions were needed to ensure uniformity in understanding the connectivity before initiating any action, he said that the Belt and Road Initiative (BRI) is very relevant for Nepal’s development and Nepal should not get confused.
Referring to Chinese President Xi Jinping's remarks about helping Nepal transform to a land-linked country from a landlocked one by opening more customs points, Pokharel also argued that the trans-Himalayan connectivity will bring benefits not just to Nepal but to the whole trans-Himalayan region.
Saying that unprecedented interdependence among countries highlights the importance of connectivity, ambassador of China to Nepal Hou Yanqi said that better roads improve lives of the people. “Strengthening the connectivity in the Himalayan region, the most complicated topography in the world, is of great difficulty,” she said, adding that the challenge will however not stop them. “We made efforts with the hope to deepen the bilateral cooperation in the areas of trade, investment, cultural and people-to-people exchanges, and with the view to contribute to Nepal's development agenda that includes graduating from the LDC status at an early date.”
Former Foreign Minister Dr Prakash Sharan Mahat, on the occasion, also said that Nepal should be very serious to take maximum benefits from trans-Himalayan connectivity. While adding that identification of project was very crucial based on the expert opinions and the returns of investment, he argued that China could be a good source country for foreign investment to help Nepal generate employment at home and reduce the trade deficit with China.
Likewise, former Nepali ambassador to the US, Dr Shankar Sharma highlighted the need for carrying out more research in several key areas like the impact of railway project to the trade of Nepal and overall economy of Nepal, employment generation, improvement in people's day to day livelihoods and contribution of connectivity to the GDP.
Chair of Trans-Himalaya Development Centre Dr Kalyan Raj Sharma, on the occasion, said that a trans-Himalayan connectivity network will be the best option to end infrastructure gaps and development bottlenecks in the region.

Nepal to seek clarification of relations between MCC and IPS

The ruling Nepal Communist Party (NCP) is backing off from its commitment and agreement to start implementation of the mega US grant project, and seeking clarification from the US on relations between Millennium Challenge Corporation (MCC) and Indo-Pacific Strategy (IPS).
Replying the members at the standing committee meeting co-chair of Nepal Communist Party (NCP) Pushpa Kamal Dahal today said that Nepal could accept US assistance under MCC compact programme after clearance from its relation with IPS, which some of the ruling party members think a military alliance to counter China – the northern neighbour – and Beijing’s Belt and Road Initiative (BRI).
Dahal said that Nepal could accept the MCC only after considering the strings attached to the programme, according to the NCP (NCP) standing committee member Beduram Bhusal. “We have to see how far the conditions of the MCC programme suit Nepal’s national interests,” Bhusal quoted Dahal as telling the committee. “Dahal said while Nepal should continue to enjoy its old and cordial relations with the US, it could not be part of any military alliance in the guise of any programme.”
Some of the standing committee members told the meeting that MCC is part of the IPS and hence Nepal should not accept it. They put pressure on the leadership and the government seeking clarity from the US on MCC, and its relations to IPS. “The IPS has been a subject of speculation among the political and diplomatic circles ever since foreign minister Pradeep Kumar Gyawali visited Washington last December,” they claimed.
Nepal became eligible for the MCC – announced in 2002 by US President George W Bush – in 2011 and signed the agreement in 2017. Though, the MCC compact was signed by Nepali Congress (NC) government of which the former Maoist party was a coalition partner, the ruling party – unified between former Maoist party and fomer CPN(UML) party – has been sharply divided about endorsing the US grant from the Parliament.
The implementation of MCC will start once the Nepal’s Parliament ratifies it. The MCC, however, did not pass during the previous House session because of the reluctance of then House Speaker Krishna Bahadur Mahara, though foreign minister Pradeep Kumar Gyawali assurance that MCC was not part of IPS. The government spokesperson and minister for Communication and Information Technology Gokul Baskota has – during his regular weekly press briefing – also claimed that the MCC will be ratified by the Parliament’s winter session that started yesterday. The opposing ruling party leaders did not believe even the Prime Minister KP Sharma Oli, who has also claimed that the MCC will be endorsed during the winter session of Parliament.
The US has announced that it will provide assistance of $500 million in grants to Nepal under the MCC programme over the next five years. Nepal has to invest more than Rs 13 billion – as a matching fund – for the programme. The grant will be used to construct the toad and transmission lines, for better connectivity. Nepal plans to use the grant to develop the 400-KV Nepal-India Butwal-Gorakhpur electricity transmission line and to upgrade some roads.
The US officials have repeatedly termed MCC an important initiative under the Washington-led IPS. The US officials including US envoy to Nepal Randy Berry have also time and again clarified that IPS is just a US ‘policy’ and it does not require or demand membership from anyone. But opposing leaders have been claiming that the MCC is part of the US military strategy IPS to counter China and Beijing’s influence.
The leaders, who are opposing the MCC, are also claiming that the provision – in the agreement – allowing only the US to terminate the agreement is faulty. “Nepal should include a provision allowing it also to terminate the agreement as the provision is against the spirit of equality between sovereign countries,” a standing committee member Bhim Rawal said, adding that Nepal should also be allowed to audit the accounts, which according to the agreement, is not allowed. Rawal – in the standing committee meeting – asked foreign minister Gyawali to seek clarification from the US, if the grant is provided as a part of the IPS.
The ongoing debate over the MCC, according to the experts, is nothing but ‘the best example of ruling party’s myopic diplomacy.’ But foreign minister Gyawali ruled out any diplomatic friction between Nepal and the US due to the ongoing debate on the US programme and the growing demand from the party members to seek clarity from Washington.

Nepali, Chinese officials stress better road connectivity

Unlike Nepal’s wish list of constructing Kerung-Kathmandu railway, Chinese officials suggested to invest in cross-border road connectivity.
A Belt and Road Initiative (BRI) lobby in Nepal has urged Nepal to invest in cross-border road connectivity to boost Chinese tourist arrivals. “The proposed Kerung-Kathmandu railway is a distant dream that may take a few decades, but road connectivity is essential for near future,” the Nepali and Chinese think tank said today. As Chinese officials have time and again referred to the Kerung-Kathmandu railway as a ‘long-term project’ which entails overcoming immense geographical complexities, Nepal-China road connectivity is not only ensure improved Chinese tourist inflow but could be a sustainable way to bring visitors from the northern neighbour.
Speaking at a workshop ‘Drive tourism initiative and tourism transport safety’ organised by the Belt and Road International Transport Alliance – think tank for the Belt and Road Initiative founded by the China Highway and Transportation Society – economic chancellor of the Chinese Embassy Zhang Fan said that the countries included in the Belt and Road Initiative witnessed 77 per cent growth in the number of Chinese tourists – in the last five years – and the numbers are growing at the rate of 15 per cent annually.
“There is a need for increased collaboration between Nepal and China on the framework of BRI projects as part of a cross-Himalayan connectivity network,” he added.
Likewise, deputy director of the International Cooperation Department of China Highway and Transportation Society Honghua Zhang, on the occasion, said that Nepal’s tourism sector could contribute 10 per cent to the country’s gross domestic product (GDP), if challenges related to tourism infrastructure were resolved.
However, Nepal has not made any headway on infrastructure project negotiations under the Belt and Road Initiative (BRI) framework, which will expire in May 2020. Nepal and China signed the framework agreement on BRI on May 12, 2017.
On the occasion, transport expert Ashish Gajurel said that Chinese officials including representatives of Chinese road construction firms has hinted growing interest in what they called a trans-Himalayan network, particularly road connectivity. “Although there is scope of bringing in Chinese tourists or enhancing trade through road networks, the government has not taken the initiative to finalise such projects as part of the Belt and Road Initiative,” he said, adding that there are investment opportunities in Nepal’s transport and tourism sector. “If Nepal could bring direct investments to build roads on the northern border, we can host Chinese tourists in greater numbers.”
The bordering villages in Taplejung, Sankhuwasabha, Solukhumbu, Dolakha, Rasuwa, Gorkha, Mustang, Manang, Dolpa, Mugu and Humla were declared out of bounds to foreign visitors in the 1970s. The foreigners are required to get special permits from the Department of Immigration (DoI) to travel to these areas. The individual trekkers will not get any permit as only trekkers travelling in a group through a government authorised trekking agency can apply for permission with a fee ranging from $10 per week to $500 for 10 days depending on where one wants to go.
In the 1970s, the government imposed restrictions on the movement of foreigners in a number of northern villages bordering China's Tibet region as Khampa rebels were found using Nepali territory to mount cross-border raids. In 1974, the Nepali Army succeeded in completely disarming the Khampa rebels, but the travel restrictions remained.
But the trekking agencies and tour operators have been lobbying with the government to open up these areas. The travel entrepreneurs say that lack of government initiative to open up northern border regions and develop proper road connectivity has hindered growth prospects.
“Currently, Chinese visitors opting to travel to Lo Manthang have to fly to Kathmandu before taking the bus, which makes the travel costlier compared to travelling to their destination by bus via the Korala border point,” said the chairperson of Mountain Sports Federation Nepal, which is associated with the Alliance, Govinda Bhattarai.
“We have been constantly lobbying to promote drive tourism as a product based on-road travel offering trans-Himalayan tours, but poor road connectivity, and safety and legal restrictions made it difficult,” he added.
The Chinese officials have also been pushing for building high-quality roads linking Nepal and China to boost tourist arrivals to Nepal. According to the International Road Assessment Programme, ensuring more than 75 per cent of travel is on the equivalent of three-star or better roads for all road users by 2030 will be critical for Nepal to achieve the Sustainable Development Goals (SDGs), and the BRI can make important contributions to the targets.
“In Nepal, achieving greater than 75 per cent of travel on three-star or better roads for all road users by 2030 stands to save over 2,000 lives each year with an economic benefit to the country of over $6 billion,” according to the International Road Assessment Programme.
Better north-south road connectivity will not only boost tourist arrivals but also more trade among Nepal, China and India. Worse road condition has hit Nepal’s export making domestic products more expensive, whereas the imports have also been expensive fueling the inflation in the country.

Nepal, India agree to build New Butwal-Gorakhpur transmission line with equal equity investment

After the two-day talks, Nepal and India today finalised the construction modality of 400 kVA New Butwal-Gorakhpur cross-border transmission line.
Nepal and India agreed to fund – a second high-capacity cross-border transmission line connecting Butwal to Gorakhpur in India – through a commercial entity with 50-50 equity, informed managing director of Nepal Electricity Authority (NEA) Kul Man Ghising, who also took part in the meeting.
 “The 80 per cent of the project cost will be financed through loans, while the Nepali and Indian governments will chip in the remaining 10 per cent each,” he said, adding that both the countries will form a joint company within three months and have a project implementation agreement, within six months. “The agreement – followed by a two-day seventh Joint Steering Committee and Joint Working Group meeting on Nepal-India Cooperation in the Power Sector in the southern Indian city of Bengaluru – also concluded with agreements on implementation and financing modality of the 135-km-long, 400 kV transmission line and formalisation of an energy banking mechanism between Nepal and India.”
The decision came a month after the Nepali and Indian energy ministers expressed optimism over both sides coming to terms on the development modality of the proposed 400 kV New Butwal-Gorakhpur transmission line project.
The detailed project report (DPR) of the cross-border transmission lines has been updated and revised by India in consultation with power utility officials, which has led to a cost reduction of around $18 million on the Indian portion of the transmission line, Ghising said, adding that the cost reduction and decision to evacuate or relay power from the existing substation in Gorakhpur rather than building a new substation for power exchange has added to the commercial viability of the project.
Around 120-km out of the Butwal-Gorakhpur Transmission Line's 135-km length lies in Indian territory. The project is of high strategic importance to both Nepal and India as it will set up a reliable route for energy banking by synchronising Nepal's power grid with India's and allow the power utility to sell large quantum of surplus power, which Nepal is poised to generate in the coming years.
The proposed transmission line is also a major component of the $630 million ‘Nepal Compact’ – an agreement between the government of Nepal and Millennium Challenge Corporation (MCC) of the US to fund electricity and road projects of strategic importance in Nepal.
The delay in finalising the construction of the transmission line project has affected the implementation of the MCC assistance to Nepal. The Millennium Challenge Account Nepal (MCA-Nepal) has already decided the project implementation date from June 30, 2020.
The agreement also paves the way for Nepal, India and Bangladesh to sign an agreement on using the Indian grid to transfer electricity from Nepal to Bangladesh, four months after a secretary-level meeting between Nepali and Bangladeshi energy officials agreed to trade power through India's transmission network. The meeting has decided to hold a tripartite meeting within three months. “The meeting is expected to fix transmission modalities and commercial terms for use of the Indian grid, paving the way for direct power trade between Nepal and Bangladesh through India.
Earlier, officials from both the countries had reached a broader agreement that the portion of the transmission line passing through Indian territory will be built by a commercial entity after India rejected Nepal’s proposal to develop the line under a government to government (G2G) financial model. Following the refusal, Nepal proposed to build the line with an equal equity investment from Nepal Electricity Authority (NEA) and Power Grid Corporation of India (DGCI) and book the use of power lines for seven years to which the Indian energy officials have now agreed, Ghising added.
The agreement between Nepal and India on implementing the transmission line is a ley pre-requisite for the multi-million dollar MCC-Nepal compact – viewed by many in Nepal as a counter-initiative under the Indo-Pacific Strategy of the US against China's Belt and Road Initiative (BRI) – to become effective.
Though the compact, which will prevail over the domestic laws, has been tabled in Parliament, it is yet to be ratified, due to intra-party differences within the ruling party lawmakers and leaders over Nepal’s degree of involvement in the USA's Indo-pacific Strategy and China’s BRI.
The compact is expected to be ratified by the Parliament by the time Millenium Challenge Account-Nepal (MCC-N) – the implementing agency of the project – completes an environmental impact assessment (EIA) of the infrastructure.
Energy secretary Dinesh Kumar Ghimire led the Nepali team, while his counterpart Subhash Chandra Garg had headed the Indian team during the meeting today, where India has also agreed to formalise the terms related to energy banking mechanism, which will allow Nepal and India to exchange power on a need basis, after the multiple requests from Nepali authorities and the surplus power projections.
Currently, energy banking between Nepal and India is done through mutual agreements under the purview of the Nepal-India Power Exchange Committee,” according to the NEA. “Indian energy officials have now agreed to formalise energy banking through cross-border power trade regulations of India.”
“The Bengaluru meeting also decided to permit NEA to trade in Indian Energy Exchange, an automated power trading platform which Nepal is keen on joining,” the state power utility informed, adding that the meeting also approved the DPR of Lumki-Bareilly and Inaruwa-Purnea cross border transmission lines between Nepal and India proposed to be built by 2025.

Nepal and China sign and exchange 20 agreements

Nepal and China signed 18 memorandums of understanding (MoU) and two letters of exchange – to promote bilateral cooperation in multiple fields including physical infrastructure development, railroad connectivity and investment – today on the concluding day of Chinese President Xi Jinping's two-day state visit to Nepal.
The signing of 18 MoUs and two Letters of Exchange in regard with having a partnership with government bodies including the Ministries of Home, Foreign Affairs, Physical Infrastructure and Transport, Agriculture and Livestock Development, Industry, Commerce and Supply, and the Kathmandu metropolis were witnessed by Prime Minister KP Sharma Oli and Xi today morning.
Foreign ministers from Nepal and China as well as finance, home and foreign secretaries and secretaries at related ministries and the Chinese ambassador to Nepal Hou Yaunqi signed and exchanged the MoU and letters of exchange, on the occasion.
Xi arrived in Kathmandu yesterday in a first visit by a sitting Chinese president to Nepal in over two decades.
The two sides – while recalling the MoU signed between the two countries on June 21, 2018 on Cooperation in Railway Project – agreed to conduct the feasibility study as outlined in the MoU signed on October 13, 2019, which will lay an important foundation to launching the construction of the Cross-Border Railway, a joint statement issued on the occasion, reads, adding that both sides also reiterated their commitment to extend cooperation on Kathmandu-Pokhara-Lumbini Railway Project. “The two sides welcomed the reopening and restoration of the freight functions of the Zhangmu-Khasa port, and will optimise the functions of the Jilong-Keyrung port and open the Lizi-Nechung port at the earliest possible time and build necessary infrastructure on the Nepali side of the border.”
Both sides would also keep implementing the Protocol concerning the Utilisation of Highway in Tibet of China by Nepal for Cargo Transport and the Protocol to the Agreement on Transit Transport. On the basis of maintaining the long-term operational condition of the Araniko Highway, both sides agreed to cooperate on upgrading and reconstructing the highway on a priority basis in a step-by-step manner.
The Chinese side conveyed its readiness in initiating the repair of Syaphrubesi-Rasuwagadhi Highway, the statement reads realising the importance of enhanced level of connectivity between the two countries, the two sides agreed to proactively cooperate on the feasibility study for the construction of tunnels along the road from Jilong-Keyrung to Kathmandu. “The Chinese side also noted the request made by the Nepali side for the construction of Kimathanka-Leguwaghat section of the Koshi Highway and agreed to consider this project in future cooperation plan and requested the Nepali side to submit a detailed proposal.”
According to the joint statement, the two sides reiterated their commitment to undertake study on the possibility of cooperation, as reflected in the Joint Statement issued in Beijing on June 21, 2018, for the development of the three North-South corridors in Nepal – Koshi Economic Corridor, Gandaki Economic Corridor and Karnali Economic corridor – in order to create jobs and improve local livelihood, and stimulate economic growth and development. “The Chinese side will also extend assistance for training Nepali technical human resources in the field of railway, road and tunnel engineering as well as inland waterways and shipping.”
Both sides welcomed the consensus reached by the civil aviation authorities of the two countries on expanding the air rights arrangements, under the framework of which the airlines of both countries are encouraged to launch-operate more direct air services. Both sides will coordinate closely to speed up the construction of the Pokhara International Airport so that it would start operation at an early date.
The two sides expressed satisfaction over the successful commercial operation of Nepal-China cross-border optical fiber cable and agreed to further strengthen cooperation on information and communications for mutual benefit.
Both agreed to strengthen cooperation in various fields of economy including trade, tourism, investment, capacity of production and improving people’s livelihood so as to promote mutual development, reads the statement. “Under the framework of Nepal-China Joint Commission on Economy and Trade, the two sides will establish a working group on investment cooperation and a working group on trade led by secretary-vice minister-level officials or their designates so as to facilitate bilateral investment and trade.”
The Chinese side welcomed the Nepali side to participate in the National Exhibition of the Second China International Import Expo to be held in Shanghai in November 2019.
Both sides will hold comprehensive discussions with a view to strengthening trade relations between the two countries. The Chinese side will take positive measures to expand Nepal’s export to China. The Chinese side will consider providing technical support for the establishment of a multifunctional laboratory in Nepal and extend necessary cooperation to make Tatopani Frontier Inspection Station at Larcha fully functional. Nepal will facilitate the Chinese banks to open their branches and other financial services in Nepal with a view to facilitating trade and investment between the two countries. Both sides will complete their internal procedures at the earliest time for the operationalisation of the Protocol to the Transit Transport Agreement and try their best to implement it at an early date.
Both sides welcomed the signing of the Protocol on Phytosanitary requirements for the Export of Citrus Fruits from Nepal to China and agreed to conclude MoU on Cooperation on Import and Export of Food Safety at the earliest, it reads, adding that the two sides will continue cooperation on production capacity and investment according to the principles of ‘dominated by enterprises, respecting business principles, adhering to market-orientation and following international common practice’. “On the basis of the MoU on Energy Cooperation between the Ministry of Energy, Water Resources and Irrigation of Nepal and the National Energy Administration of the People’s Republic of China signed on June 21, 2018, both sides will bring into full play the Joint Implementation Mechanism (JIM) on Nepal-China Cooperation in energy sector, to carry out exchanges and cooperation in the fields of hydropower, wind power, solar power, biomass energy and other kinds of new energy as well as grid systems, etc.”
Both sides agreed to jointly carry out Nepal-China Electric Power Cooperation Plan and complete it within one year, apart from taking this Plan as an important reference for the next step of bilateral electric power cooperation and promote its implementation.
The Chinese side attached great importance to the aspiration of the Nepali side to establish a multidisciplinary Madan Bhandari University for Science and Technology as a mark of respect to People’s Leader Late Madan Bhandari and will extend support at the earliest date after the Nepali side chooses a suitable site for the university. Both sides will continue their discussion on the basis of the report to be submitted by the site visit working group of the Chinese side.
Likewise, the Chinese side is willing to expedite the project of improving the quality of supplied water in Kathmandu.
The Chinese side noted Nepal’s proposal on Integrated Development, including resettlement of scattered population in the Himalayan Region of Nepal. The Chinese side is willing to share experiences and consider cooperating with the Nepali side on this proposal.
Recognising that Mount Sagarmatha -Zhumulangma is an eternal symbol of the friendship between Nepal and China, the two sides will promote cooperation in different fields, including addressing climate change and protecting the environment. They will jointly announce the height of the Mount Sagarmatha-Zhumulangma and conduct scientific researches.
Both sides expressed satisfaction with the signing of the Agreement between the Government of Nepal and the Government of the People’s Republic of China on Boundary Management System, which will improve the level of boundary management and cooperation for both sides. They were also satisfied with signing the Treaty on Mutual Legal Assistance in Criminal Matters and expressed hope for an early conclusion of the Treaty on Extradition. The two sides agreed to strengthen cooperation between the law enforcement agencies on information exchanges, capacity building and training. In the next 3 years, China will offer 100 training opportunities to the Nepali law enforcement officers each year. With a view to promoting cooperation in security sector, the two sides will continue to strengthen cooperation in the exchange of visits of the security personnel, joint exercises and training, disaster prevention and reduction and personnel training.
The two sides agreed to promote exchanges and cooperation in education, culture, tourism, traditional medicine, media, think tanks and youth at different levels. The Chinese side will offer the Nepali side 100 Confucius Institute Scholarships.
The Chinese side supports the Nepali side to hold the activity of Visit Nepal Year 2020, welcomes the Nepali side to participate in the travel marts held in China and is willing to facilitate Nepal’s promotion on tourism in China. The Chinese side will hold the 9th China Festival and the 4th Kathmandu Cultural Forum in Nepal, and continue to encourage the Chinese Cultural Centre and the Confucius Institute to promote Nepal-China cultural exchanges and cooperation.
The two sides welcomed that Kathmandu of Nepal and Nanjing of China and Butwal Sub-Metropolitan City of Nepal and Xi’an city of China had developed friendship-city relations. The Chinese side consented to the establishment of Nepal’s Consulate General in Chengdu, Sichuan Province of China.
Both sides agreed to revitalise the existing mechanisms between the two countries to further strengthen relations and advance mutually beneficial cooperation in various fields.
Both sides agreed to strengthen cooperation in the United Nations and other multilateral fora and to safeguard common interests of developing countries. Both sides exchanged fruitful views on promoting collaboration and strengthening cooperation in regional issues and agreed to support each other on matters of mutual interest. The two sides expressed firm commitment to the multilateral trading regime and work for a more open, inclusive and balanced economic globalization with shared benefits.
Both sides held that President Xi Jinping’s State visit, on the historic occasion of the 70th anniversary of the founding of the People’s Republic of China, to Nepal marked the beginning of a new era in Nepal-China relations and served as an important milestone in the history of friendly cooperation between the two countries. The Chinese side would like to extend its sincere gratitude to the Government of Nepal and its people for their warm and friendly reception.
Nepal and China decided to elevate Nepal-China Comprehensive Partnership of Cooperation Featuring Ever-lasting Friendship to Strategic Partnership of Cooperation Featuring Ever-lasting Friendship for Development and Prosperity, according to the joint statement.
The two sides also expressed satisfaction over the fact that since the establishment of diplomatic relations between the two countries in 1955, Nepal-China relationship has withstood changes of the international situation and has been growing in a consistent, steady and healthy manner, which sets a model of peaceful coexistence between the two countries of different size, reads the joint statement. “Both sides recognised that the bilateral relationship between the two countries is characterized by equality, harmonious coexistence, ever-lasting friendship and comprehensive cooperation.”
Both sides decided to, on the basis of the Five Principles of Peaceful Coexistence, Charter of the United Nations and principles of good neighborliness; elevate Nepal-China Comprehensive Partnership of Cooperation Featuring Ever-lasting Friendship to Strategic Partnership of Cooperation Featuring Ever-lasting Friendship for Development and Prosperity.
Likewise, The two sides agreed to respect each other’s independence, sovereignty and territorial integrity, and respect and accommodate each other’s concerns and core interests, it reads. “The two sides will adhere to good neighboring policy and deepen overall cooperation in a win-win manner, so as to achieve mutual benefit and pursue stability and development together.”
Nepal and China take the Belt and Road Initiative (BRI) as an important opportunity to deepen mutually-beneficial cooperation in all fields in a comprehensive manner, jointly pursue common prosperity and dedicate themselves to maintaining peace, stability and development in the region, it reads, adding that the bilateral relationship between Nepal and China has entered a new phase.
The Nepali side, on the occasion, reiterated its firm commitment to One China policy, acknowledging that Taiwan is an inalienable part of the Chinese territory and Tibet affairs are China’s internal affairs, and the determination on not allowing any anti-China activities on its soil. The Chinese side also reiterated its firm support to Nepal in upholding the country’s independence, sovereignty and territorial integrity, and its firm support and respect to Nepal’s social system and development path independently chosen in the light of Nepal’s national conditions.
The two sides, on the occasion, agreed to intensify implementation of the MoU on Cooperation under the Belt and Road Initiative (BRI) to enhance connectivity, encompassing such vital components as ports, roads, railways, aviation and communications within the overarching framework of trans-Himalayan Multi-Dimensional Connectivity Network with a view to significantly contributing to Nepal’s development agenda that includes graduating from LDC at an early date, becoming middle income country by 2030 and realising the SDGs by the same date.
President of the People’s Republic of China Xi Jinping – at the invitation of President Bidya Devi Bhandari – paid two-day state visit to Nepal on October 12-13 October. President Xi and the Chinese delegation departed for Beijing on today afternoon.
During the visit, President Xi met with President Bhandari, held talks with Prime Minister K P Sharma Oli and attended the welcoming banquet by President Bhandari. While addressing a banquet hosted by Bhandari in honour of Xi yesterday evening, the Chinese President announced Rs 56 billion economic assistance for Nepal for the next two years from 2020 to 2022.
Before the banquet, Xi held talks with Nepali Congress (NC) President and former prime minister Sher Bahadur Deuba. During the meeting, Deuba appreciated Chinese investments that go towards Nepal’s development efforts.

No Extradition Treaty during Chinese President Xi visit

As the diplomatic community and political parties in Kathmandu show serious concern about the government’s ‘plan’ to sign the Nepal-China Extradition Treaty during the high level visit from China this week end, Nepal seems to back out from its plan.
“The understanding about China pressing Nepal to sign the Extradition Treaty has raised eyebrows in Kathmandu because it needs many rounds of transparent discussions before signing,” Nepali Congress (NC) leader and former foreign minister Dr Prakash Sharan Mahat said.
Remembering that Nepali Congress (NC) has had a cordial relations with China since the time of Nepal’s first elected Prime Minister BP Koirala – an ardent sociologist and the founder of Nepali Congress Party – Mahat said that Nepal always has adopted one-China policy but the Extradition Treaty needs to be discussed thoroughly before signing.
The diplomatic circle in Kathmandu, however, is worried that the treaty could be used by China to extradite Tibetans from Nepal. There are estimated 20,000 Tibetan refugees in Nepal – mostly in Kathmandu and Pokhara – at present. Some of them, who are suspected to be involved in Free Tibet movement, according to the Nepal Police, have already been arrested before the Chinese President’s visit. But the US and European Union (EU) take it as a gross violation against the human rights, and Nepal’s international commitment in the international agreements.
Taking part in a meeting in Baluwater, the official residence of the Prime Minister today, former prime minister and Nepali Congress (NC) president Sher Bahadur Deuba also suggested the government not to sign Extradition Treaty in haste as it needs wider consultations.
The meeting called by Prime Minister K P Sharma Oli also discussed on China-backed Belt and Road Initiative (BRI) and US-backed Indo-Pacific Strategy (IPS). The former prime ministers, and foreign experts present in the meeting reminded the government on Nepal's historic stance of non alignment. “Nepal should take advantage from both BRI and Indo-Pacific Strategy (IPS), and develop itself as a trading bridge between India and China,” suggested former premier Dr Baburam Bhattarai, on the occasion.
However, another former prime minister, who was in the meeting reminding what happened in Hong Kong after the proposals to allow extradition to mainland China, said that Nepal needs to follow the international commitments and agreements it has already signed before signing any bilateral agreements that could undermine the country's judicial independence and endanger rights of refugees especially Tibetan refugees. “The Extradition Treaty may ruffle many feathers,” he suggested.
Meanwhile, NC stalwart and former finance minister Dr Ram Sharan Mahat, wishing a historic success to President Xi visit to Nepal, said that Chinese assistance should focus on Nepal’s development, prioritise based on felt needs in power sector, road connectivity, technology transfer, investment and export trade, rather than wishful thinking without techno-economic appraisal.
However, foreign minister Pradeep Kumar Gyawali – during the meeting – briefed about the Nepal’s agenda. “Nepal has connectivity on top,” he briefed.
“The shopping list includes Kerung-Kathmandu Railway, physical infrastructure upgradation at the Kimathanka and Korala border, upgradation of Rashuwagadi customs and road to Kathmandu, Tatopani customs and road to Kathmandu, Tamor Hydropower and also the Madan Bhadari University,” another former prime minister, who took part in the meeting said, without wanting to be named. “Apart from the pacts, Beijing has sent a signal that there will be a big-surprise during Xi visit.”
According to a preliminary study, the 80-km long Kerung-Kathmandu cross border railway is estimated to cost Rs 300 billion, and will take 8 years to complete.
However, a Chinese team will visit Kathmandu tomorrow to finalise the drafts of agreements that are going to be signed in presence of Chinese President Xi’s visit, a high profile visit from northern neighbour after 23 year since Jiang Zemin visited in 1996.
Accepting the friendly invitation of President Mrs Bidya Devi Bhandar, the President of the People’s Republic of China Xi Jinping is paying a two-day state visit to Nepal on October 12 and 13.

IBN, Chinese company seal deal for Damak Industrial Park

The government and Damak Clean Industrial Park Pvt Ltd (DCIPPL) signed a memorandum of understanding (MoU) for the construction of the 'China-Nepal Friendship Industrial Park' in Province 1.
The chief executive of Investment Board Nepal (IBN) Maha Prasad Adhikari and the chairman of DCIPPL, Govinda Bahadur Thapa signed the MoU amid a ceremony held in the capital today.
The industrial park – located at Damak in Jhapa district – is going to be built with a total investment of around Rs 64 billion from Chinese investor Lhasa Economic and Technology Development Zone Jing-Ping Joint Creation Construction Project Development Co Ltd.
Spread over an area of 1,600 hectares, the industrial park will be built in public-private partnership (PPP) model, according to the IBN. “The government has already completed the process of land acquisition to construct the park. The construction will start as soon as the Detailed Project Report (DPR) for construction, operation and management of the industrial park is presented followed by the Project Development Agreement (PDA), the board informed, adding that the park will be spread over Gauradaha municipality, Kamal rural municipality and Damak municipality of Jhapa. “The project is the first one in Nepal supported under the Belt and Road Initiative (BRI) of China.”
The project is expected to add a new dimension in sectors like expansion of investment between Nepal and China and infrastructure development. The project is also expected to contribute to the expansion of physical infrastructure, fulfill local demand, and support export promotion, according to vice mayor of Lhasa Municipal People's Government Liu Guang Min.
Speaking on the occasion of MoU signing, Liu said that the industrial park will contribute toward employment generation and socio-economic development of Nepal.
Likewise, chairman of the industrial park Govinda Thapa said that the construction work of the project will present a model of efficiency and transparency. “The project will establish a new model of development in Nepal,” he said, adding that the project will give us a model that the entire country and the people can be proud of.
Likewise, Adhikari, on the occasion, said that the construction of the industrial park will contribute to the development of Nepal. Chairman of the Industrial Area Development Limited Nanda Kishor Basnet said that the project will be Nepal's model project. “Nepal did not have projects other than hydropower projects in PPP model,” he said adding that that it would be Nepal's first non-hydro project under PPP model.
The signing of the MoU precedes the visit of Chinese president Xi Jinping that is scheduled for next week.
Though the government has approved Chinese investment of Rs 64 billion to construct Nepal-China Friendship Industrial Park, the construction work is still unsure as the landlords are not in consensus about the use of their lands.
Some of the landlords have not accepted the compensation amount stating that the amount is too low.
According to Industrial Area Development Limited, some 117 landlords have received Rs 120.7 million till now. The compensation has been distributed according to the recommendation from a committee formed under the coordination of the Chief District Officer (CDO).
The District Administration Office has classified the land into three category: cultivable land, riverside land and land occupied by bushes. Compensation of Rs 2.2 million has been approved for a bigha of cultivable land, Rs 800,000 for land occupied by bushes, and Rs 200,000 for riverside land. The government has provided Rs 430.44 million for compensation distribution.
The government has distributed the compensation to the landlords of Damak Municipality, Gauradaha Municipality, and Kamal Rural Municipality. However, landlords of 61 units of land have not been identified.
Basnet said that the construction work will begin by mid-December in 500 bigha land of Jharka in Kamal-7. However, the landlords of Kamal-7 have suspected the government's intention and blaming that it is a ploy to capture their land. “No paper has mentioned that the land is taken for the establishment of the Industrial Park, they blamed, adding that it might be a strategy of the government to buy the land for cheap. The landlords have also claimed that the recommended compensation amount is less the government valuation of their land. “A compensation of Rs 200,000 per bigha is recommended,” they said, adding, “However, government rate is Rs 700,000 per bigha.
Basnet, however, claimed that the compensation amount has been decided according to the Land Acquisition Act.

Need should focus on strengthening regional interconnectivity

Experts suggested the need to focus on strengthening regional interconnectivity for desired development of infrastructure in Nepal.
Addressing a session ‘Infrastructure and Regional Connectivity’,  former vice chair of the National Planning Commission (NPC) Swarnim Wagle said that landlocked nations like Nepal should highly focus on development of infrastructure, interconnectivity, information and technology to generate its own assets. “The government should raise investment to bridge the development gap between cities and rural regions in Nepal," he said, adding that Asia has become the centre of global economy today. “Nepal should effectively take benefit from its strategic location in between India and China.”
According to hi, the government should reform some policy and practical issues to take advantage from this. “The government has been subject to criticism due to some plans and projects that has been introduced without enough groundwork,” he said, adding that the government should increase investment in the productive sector and focus on export of high-value price to address the ballooning trade deficit. “Nepal also needs to enhance air connectivity, execute railways plans, promote digital economy, ensure market for energy along with increasing production of electricity.”
Nepal also should make its presence in regional forums like SAARC, BIMSTEC, BBIN and BRI among others and take benefits, according to him.
Speaking on the occasion, former general manager at World Bank (WB) Noritada Morita said that interconnectivity is the current need of South Asia. "Prior to this, peace was important agenda in South Asia,” he said, adding that the need of South Asian nations today is, however, development of infrastructure and raise per capita income of people.
Likewise, secretary at the Foreign Ministry Shankar Das Bairagi claimed that Nepal has enhanced trade relationship with neighbouring countries in the recent years. “The government is also expanding its network among regional forums to enhance power connectivity, interconnectivity of transmission line, telecommunication, railways, waterways and airways," he informed.
Informing that the government has prepared long-term action plan to develop the energy sector, energy secretary Dinesh Kumar Ghimire, on the occasion, appealed investors to invest in the hydropower. He also said that Nepal will start exporting energy to neighbouring nations in the near future.

Nepal, China to implement past pacts

Kathmandu and Beijing have agreed to implement agreements and understandings reached between the two neighbours in the past, and underscored the importance of exchange of high-level visits on a regular basis to develop mutual trust and confidence.
During the meeting between the foreign minister Pradeep Kumar Gyawali and state councilor and minister of Foreign Affairs of China Wang Yi, they also reviewed all important aspects of bilateral relations, according to a press note issued by the Foreign Ministry today. “They expressed satisfaction over the expanding and deepening relations between Nepal and China in recent years and agreed to further promote co-operation in various areas of mutual interest,” it reads, adding that they also agreed to continue cooperation in regional and multilateral forums on matters of mutual interests. “Gyawali appreciated China’s continued support for Nepal’s socio-economic development and underlined the need of strengthening cooperation in the fields of connectivity, infrastructure, energy and education.”
In his reply, Wang assured Gyawali of Chinese support to Nepal’s development endeavours.
During delegation-level bilateral talks between them, the two sides also exchanged substantive views on promoting bilateral economic cooperation with special focus on trade, investment and tourism.
Following bilateral talks, the two ministers witnessed signing of two letters of exchange and a memorandum of understanding (MoU). The letters of exchange are related to Hospital Recovery Project in Manang for which the Chinese side has pledged around Rs 350 million and 5,000 units of emergency shelter tents.
Likewise, the Memorandum of Understanding (MoU) on Volunteer Chinese Teachers’ Programme in Nepal has also been inked between the Ministry of Education, Science and Technology and the Embassy of the People’s Republic of China in Kathmandu.
According to the agreement China will provide volunteers to teach Chinese language in Nepali schools.
Wang also paid courtesy calls today on President Bidhya Devi Bhandari and Prime Minister KP Sharma Oli. During the meeting between Oli and Wang, the visiting minister expressed his commitment to elevating Nepal-China relations to new heights by implementing agreements reached between the two sides during Oli’s last visit to Beijing.
In the evening, Gyawali hosted a welcome dinner in honour of visiting counterpart and his delegation.
Wang, who arrived in Kathmandu yesterday evening, will meet Nepal Communist Party (NCP) co-chair Pushpa Kamal Dahal and Nepali Congress President Sher Bahadur Deuba.
The visit of Chinese foreign minister has also ensured the visit of Chinese President Xi Jinping in the near future, according to a high level official at the Foreign Ministry.

Chinese foreign minister Wang Yi to visit Nepal

The Foreign Ministry today confirmed the two-day official visit of Chinese foreign minister Wang Yi.
Issuing a press note today, the ministry said the State Councillor and Minister for Foreign Affairs of the People’s Republic of China Wang Yi is scheduled to visit Nepal from September 8 to September 10.
During Wang Yi’s stay in Nepal, he will call on President Bidya Devi Bhandari and Prime Minister KP Sharma Oli. Visiting Chinese Foreign Minister will also hold delegation-level bilateral talks with his Nepali counterpart Pradeep Kumar Gyawali on Monday, the note reads adding that the three-day visit is also expected to pave way for the visit of President Xi Jinping to Nepal and possible agreements between the two countries under the Belt and Road Initiative (BRI).
President Bidya Devi Bhandari during her visit to China in April – to address the second BRI Forum for International Cooperation held in Beijing – had extended invitation to Chinese President Xi to visit Nepal.  President Xi had expressed his willingness to visit Nepal at his convenient time. The Chinese President Xi is expected to visit Kathmandu in the course of his five-day state visit to India beginning from October 11.

BRI should be utilized for two countries' benefits

Nepal’s joining of the belt and road initiative (BRI) will benefit both Nepal and China, according to vice president Nanda Bahadur Pun.
“It was a matter of pride for Nepal to join the BRI launched by the Chinese president Xi, he said addressing a meeting with deputy governor of Yunnan Province of China at his residence, Green House, today.
The vice president reminded that Nepal had moved ahead with the campaign of 'prosperous Nepal, happy Nepali' and foreign investment was imperative for Nepal's development. “We expect maximum investment from Chinese companies," he said, adding that modernisation of agriculture, infrastructure development for tourism, excavation of minerals and processing of herbs are some of the potential areas for investment in Nepal.
The visiting deputy governor, on the occasion, said that China and Yunnan Province are happy to have cooperation with Nepal in various sectors. “The Chinese President has stressed that Yunnan could be made a center for the expansion of relations with South Asian and South East Asian countries,” he added.

Experts dwell on BRI opportunities and challenges

Experts from South Asia and South East Asia have highlighted the various opportunities and challenges associated with the China-proposed Belt and Road Initiative (BRI) during a two-day international conference that was concluded in Kathmandu today.
Delivering her presentation during the ‘Fourth International Conference on Belt and Road for development and prosperity of South Asia’, Centre of International Relations and Strategic Studies under the Foreign Service Institute of Philippines Darlene V Estrada said that her country has remained very receptive towards China's BRI since it joined in 2017. “We are aligning our development plans with China's BRI even though there are some geopolitical, financial and legal risks," she said, adding that it is important for any country to maximise its national interests through BRI. “The Philippines has formulated a mechanism to avoid potential risks from the extreme debt under the BRI.”
Research Associate at the East Asian International Relations of Malaysia Nur Shahadah Jamil, on the occasion, said that the new Mahathir administration has continued engagement with China for economic cooperation though it scrapped some projects under the BRI which were agreed during the previous Najib administration. “We cannot abandon our strong economic partnership with China though we have scrapped some projects under the BRI after the new government came,” she said, adding that the Chinese investment is growing rapidly at present in Malaysia.
Likewise, macroeconomic expert of the Laos government Vanxay Sayavong shared that his country is taking huge advantage from the connectivity projects including China-Laos railway built under the framework of the BRI. Suggesting the participating countries to address the concerns of local communities while executing projects under the BRI, he said that the projects built under the BRI may face strong protests at the local level like in Laos in the recent past, if the concerns raised by local communities are not addressed.
Director at the Institute of South Asian Studies under the Xizang Minzu University of Tibet Autonomous Region of China said that China and Nepal have been expanding their economic cooperation in recent years. “We are determined to execute the cross-border railroad connectivity though it may take some time," she said, adding that India's hegemonic behaviour towards Nepal is thwarting China-Nepal relations at times. “Nepal needs to pursue an independent foreign policy and deepen its close ties with next-door neighbour China.”
The head of China Study Centre at Sustainable Development Policy Institute of Pakistan Hina Aslam, on the occasion, said that Pakistan has been benefitting from the China-Pakistan Economic Corridor (CPEC) by constructing energy plants, seaport, railroad connectivity projects and special economic zones. “However, hostile relationship with India over Kashmir issue and worsening security situation of Afghanistan may bring some problems in CPEC," she added.
Explaining how Bangladesh is bilaterally working with China as the Bangladesh-China-India-Myanmar (BCIM) corridor is not moving ahead as expected, Mahfuz Kabir from Bangladesh highlighted Bangladesh-China cooperation under the BRI. “As South Asian countries are heavily dependent on China for trade and investment, they need strong railroad connectivity with China,” he added.
A member of National Planning Commission (NPC) Krishna Prasad Oli said that the BRI is offering various economic opportunities for Nepal. “We want to enhance railroad connectivity with China," he added.
The conference, organised by Nepal-China Friendship Forum, witnessed the participation of scholars and experts from Nepal, China and other Asian countries including India, Pakistan, Bangladesh, Laos, Malaysia and the Philippines.

South Asia can benefit from BRI

Minister of Foreign Affairs Pradeep Kumar Gyawali today said that South Asian states could benefit immensely from the Chinese-led Belt and Road Initiative (BRI).
Highlighting BRI’s emphasis on connectivity, he said the China-Pakistan Economic Corridor and the Bangladesh-China-India-Myanmar Economic Corridor under the BRI could play an instrumental role in boosting connectivity in the region.
“Connectivity is also important for a land-locked country like Nepal,” he said addressing the fourth international conference on ‘Belt and Road for Development and prosperity of South Asia’ in the Capital. “The BRI assistance could prove crucial in realising Nepal’s target of graduating to a middle-income country by 2030,” he said, adding that Nepal believes BRI is a reliable and result-oriented platform for cooperation. “Nepal expected capital investment and transfer of modern technology under the BRI projects.”
Our development efforts are constrained by inadequate financial resources and the BRI can be a remedy to it,” he said, adding that Nepal hopes to get benefited from the BRI investment, cooperation and exchanges. Gyawali also said that the BRI had become a fact of the present time due to its inherent policy of cooperation, collaboration and connectivity in diverse sectors.
“Economic integration in the South Asia and with China is weak, so there is a need of massive expansion of development cooperation and collaboration in trade, investment, tourism and culture,” he stated, pointing towards the need of mega infrastructure to increase connectivity to facilitate the movement of people and goods.
About 50 countries and 29 international agencies are connected with the BRI.
Chinese ambassador to Nepal Hou Yanqi, on the occasion, said that BRI is a platform for all participants. She also added that it could help boost economic and social development in the South Asian region. “The BRI aimed at delivering sustainable development results,” she said, appreciating Nepal for its support to and cooperation in the initiative. “BRI has attracted more partners, businesses and friends from which all the member countries and organisations can get benefit.”
China has become Nepal’s largest source of the Foreign Direct Investment (FDI) and tourists which is having positive impact on economic growth, she added.
Presenting the China-Pakistan Economic Corridor (CPEC), cross-sea bridge in the Maldives, Hambantota port in Sri Lanka and China-Afghanistan cooperation as the successful BRI projects, she said that they were benefitting both the partner countries. “Sooner or later India will also join the initiative.”
“BRI is open, inclusive and transparent and does not include any hidden geopolitical agenda,” she said, dismissing the doubt of BRI being taken as a debt-trap by some of the experts in Nepal.
Urging China to extend support in developing key infrastructure, former vice chair of the National Planning Commission (NPC) Dr Shankar Prasad Sharma, on the occasion, said that Nepal had given priority to infrastructure development. “Energy, trade, technology transfer, tourism and connectivity are critical for economic development of the country. But in case of Nepal security for energy and trade is critical,” he said, warning that it will be very challenging for Nepal to get benefits from the business as usual scenario as the export from Nepal to China has been declining since the last couple of years while the import is going up significantly. “The maintenance of infrastructure projects was also equally important as their development.”
Delivering a key note speech, member of the Parliament and president of Jatiya Samajtantrik Dal of Bangladesh, Hasanul Haq Inu highlighted the priorities of foreign policy of Bangladesh. He said that Bangladesh has been engaged in regional and multilateral forums like BRI, Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) and South Asian Association for Regional Cooperation (SAARC), and these forums are important to promote regional and bilateral connectivity among the countries.

Nepali team leaves for Beijing to discuss cross-border railway links

A Nepali team today left for Beijing – on the invitation of the government of China – for consultation on the construction of cross border railway including preparing the detailed project report (DPR) of the project.
Secretary at the Ministry of Physical Infrastructure and Transport Devendra Karki is leading the Nepali team that has joint-secretary Gopal Prasad Sigdel, director-general of the Department of Railways Balram Mishra, spokesperson Aman Chitrakar and the representatives of the Finance Ministry, Foreign Ministry and the Nepali Embassy in Beijing. This will be the fourth railway meeting between Nepal and China.
The Nepali delegation will also have bilateral discussions with the office-bearers of the National Railway Authority of China, apart from participating in the Nepal-China Railway Cooperation Committee’s meeting in Beijing.
According to Karki, the Chinese and Nepali officials will dwell on topics including investment and construction modality. Nepal and China had agreed to move forward the process of railway construction during the official visit of Prime Minister KP Sharma Oli on June 19-24, 2018.
It has been long since Beijing has submitted the preliminary study report – prepared by the Chinese technical team – on the railway project to Nepal. “The report has paved the way for carrying out further home work regarding the modality and the modus operandi for the construction of this railway,” according to the Department of Railways.
According to the preliminary study, Kathmandu-Kerung railway will be 80-km with construction period of nine years at estimated cost of approximately Rs 300 billion, according to the department.
The proposed railway – under the China’ Belt and Road Initiative (BRI) – linking Kerung city in southern Tibet to Nepal’s capital Kathmandu, entering the country in Rasuwa district will eventually go to India making Nepal a transit country. However, the proposed railway links between Nepal and China have started a debate in Nepal with many dreaming of cheaper goods and a geostrategic balance to India, whereas others claiming it a pipedream of KP Oli government, which used it as a election winning strategy, and a debt trap for Nepal. However, the Chinese Ambassador to Nepal Hou Yanqi, recently, has tried to allay fears clarifying that the BRI is not a ‘debt trap’ that some countries may fall into, but an ‘economic pie’ that benefits the local population.
The pre-feasibility study report prepared by China in late 2018 accepts that the project is an extremely hard one but not impossible. “Technically it will be one of the world’s toughest railways to construct,” according to the report that has listed six extremes including topography, weather, hydrology and tectonics making the project hugely challenging.
About 98 per cent of the railway on the Nepal side will be in tunnels and on bridges according to the report that has proposed about five stopovers. Tracks will need to be built on steep terrain, as the railway climbs from an altitude of 1,400 metres in Kathmandu to about 4,000 metres in Tibet. The proposed route also cuts through the mountains near a major fault line – where the Indian plate meets the Eurasian plate to form the Himalayas – so the area is very susceptible to earthquakes.
Preliminary estimates of the Kerung-Kathmandu railway project – listed as one of the 64 to be considered under China’s BRI during the second Belt and Road Forum in Beijing in April – comes to around 38 billion yuan ($5.5 billion). The railway would be 170-km long from Tibet to Kathmandu. Although only one third of the total length falls on the Nepal side, it would account for almost half of the costs due to the extreme geology and climate.
The Chinese do not seem in a rush as the Chinese railway line from Shigatse needs to arrive at Kerung, which is only expected to happen by 2025, before it will be linked to Kathmandu and then Birgunj, and Pokhara. Both the sides – in Beijing – will also discuss a feasibility study for the Kathmandu-Pokhara railway, over which a joint team of Nepali and Chinese technicians had conducted a field visit last December. Nepal is seeking a grant from China to construct the railway, whereas China has not been very enthusiastic about it, the Nepali delegation added.
Likewise, the government is currently studying another railway project, the east-west railway planned in the southern plains. A new 34-km railway from the Indian state of Bihar to Nepal is due to start running in a few months but the government will have to hire a train driver from India and other technicians to operate its first modern rail.
India has submitted a ‘pre-engineering and traffic survey report’ for the Raxaul-Kathmandu railway last month. Nepal and India had signed an agreement to conduct a survey on connecting Kathmandu with the Indian town of Raxaul in Bihar during the fourth BIMSTEC summit, held in Kathmandu last August.  Konkan Railway Corporation Limited – owned by the Indian government – had been tasked with preparing the report.
According to the Indian report, there are two alternatives – some 200-km of tracks with a gradient of one per cent, the same as the Indian rail network; or 135-km of tracks at a gradient of 1.5 per cent. The survey has also suggested the construction of 40-km to 50-km of underground tunnels.
Nepal and India, however, still have differences over the gauge – the width – of the railway track. The Indian side has based its survey report on a broad gauge while Nepali technicians prefer a standard gauge as China generally uses a standard gauge in its railways and it will be easier to connect both the railway lines in future.

Debt trap warnings over BRI projects motivated by bias: FM Gyawali

Foreign minister today dismissed the notion that Nepal could fall into a Chinese debt trap, if it chose to be part of the Belt and Road Initiatives (BRI).
The argument that Nepal could fall into a Chinese debt trap, if it chose to take loans under the BRI is motivated by bias," said foreign minister Pradeep Kumar Gyawali, addressing a press meet today.
There are some concerns from various quarters that BRI loans could possibly push Nepal into a serious debt trap like some of the countries in the world. "Nepal is aware what it should do and what it should not do in its national interests," he said, adding that Nepal is free to decide on its development initiatives. "Nepal will decide independently on Chinese loans and the selection of projects under BRI."
Arguing that Chinese debt was not behind the serious economic crises in many Latin American countries including in Argentina back in the 1990s and 2000s, he said that they were not under the Chinese debt trap. "Greece is still struggling with a serious economic crisis and many other countries have also fallen into debt traps,” he added.
He also explained that there is no rule that a country will fall into a debt trap through taking loans from any particular country and not fall into it when taking loans from another country. "The issue is whether Nepal selects a project on the basis of possible returns and what is the pay back plan," he added, though his government's selection of projects till date – since it came to the power with almost two-third majority – has not seen any suitable and economically viable projects.
Since Nepal is currently holding discussions with China on the projects to be incorporated into BRI, there are a couple of projects under consideration.
Gyawali also said that Nepal and China will sign the protocol of the Nepal-China Transit Transport Agreement during visit of President Bidya Devi Bhandari beginning from tomorrow. The protocol paves the way for the implementation of the agreement and allows Nepal third country transit facilities via Chinese ports. The first state level visit of a head of the state since the establishment of a federal republic is expected to connect Nepal's development endeavors with Chinese development success through the signing of protocol in the presence of the heads of the states.
Secretary at the Ministry of Industry, Commerce and Supplies Kedar Bahadur Adhikari will sign the protocol with his Chinese counterpart during the forum in the presence of President Bhandari. Though the protocol is said to allow more flexible terms for trade and transit – compared to India – and might be feasible for trading with South East Asian countries also, the cost of doing business through the new route is yet to be calculated.
The agreement allows open utilisation of either inland waterways or roads for transit and transport to sea ports for third country trade.
Nepal signed the Transit Transport Agreement with China in 2016 after trade blockade by India.
Likewise, President Bhandari is scheduled to take part in a roundtable to be hosted by her Chinese counterpart Xi Jinping and hold bilateral talks with Xi on April 29. Transport minister Raghubir Mahaseth will deliver a speech on 'Infrastructure and Connectivity' during the forum.

Nepal should take benefit from BRI

Preoccupation with avoiding debt-trap has dominated the discourse on China’s Belt and Road Initiative (BRI) preventing Nepal from developing concrete plans, experts pointed out during a roundtable discussion organised by SAWTEE-Centre for Sustainable Development (CSD), here, today.
The event was organised to add to the discourse on how to align Nepal’s development plans with the China’s multi-regional connectivity initiative; the Belt and Road Initiative (BRI). The BRI basically is an infrastructure investment programme creating a web of transportation system including roads, railways, telecommunications, energy pipelines, and ports across regions.
Making a presentation on the BRI and its implication for Nepal, former vice chairman of National Planning Commission (NPC) Dr Shankar Prasad Sharma called attention to the ambiguities present in the project financing modality for the projects to be included in the BRI. "Whether the financial support will be in the form of loan or grant, if it is loan then what would be the interest rate and what would be the terms and period," Sharma asked, adding that the BRI is an evolving process, onus is on Nepal to negotiate terms that are beneficial to us.
Likewise, former under-secretary general at the United Nations (UN) and head of SAWTEE-CSD Gyan Chandra Acharya pointed out that it is evident that Nepal till date does not have clear vision on how best to proceed with the BRI, hence, discussions like these could be instrumental in shaping the future courses.
Chairman of South Asia Watch on Trade, Economics and Environment (SAWTEE) Dr Posh Raj Pandey, on the occasion, pointed out that much of the BRI discourse is only dominated by infrastructure issues, but there should also be focus on towards being integrated to Chinese value chain through investment.
Similarly, infrastructure expert Dr Surya Raj Acharya cautioned that Nepal is stuck in perpetual policy-trap that is preventing discourse on the BRI modality from gaining momentum.
Former ambassador to China Dr Mahesh Kumar Maskey said that instead of vying for viable projects like cross-border Special Economic Zones (SEZ), Nepal is more focused on dubious projects such as railways, which has become counterproductive.
The participants present in the discussion programme had a consensus view that Nepal should have a clear agenda for its national interest so as not to be swayed by peripheral issues. The round table brought together a cross-section of stakeholders, including policy makers, diplomats, scholars, and private-sector.