China proposes signing BIPPA during Wen’s visit

KATHMANDU, DEC 11 -

With rising Chinese investment in Nepal and rapidly growing trade between the two countries, China has proposed signing a Bilateral Investment Promotion and Protection Agreement (BIPPA) with Nepal during Chinese Premier Wen Jiabao’s upcoming visit. China’s proposal on BIPPA, which was forwarded to the Ministry of Industry on Tuesday, is under consideration.

“We have just received the draft copy of the Chinese proposal. We need to discuss it with other line agencies like the ministries of Foreign Affairs, Finance and Commerce,” Industry Minister Anil Kumar Jha told the Post.

 It is still premature to say whether the proposal will be signed during the Chinese premier’s visit, Jha said. Nepal has already signed BIPPA with seven other countries including India.

Chinese PM Wen is arriving in Kathmandu on a three-day visit on December 20. During a high-level meeting called by Prime Minister Baburam Bhattarai to prepare for Wen’s visit on Wednesday, Nepali officials held initial discussion on the Chinese proposal.

Officials at the Industry Ministry told the Post that Chinese proposal is based on the standard format that China has signed with other countries. It is slightly different from BIPPA that we signed with India, an Industry ministry official said. “Some of the provisions in Beijing’s proposal are stricter than that of the one we signed with India,” said the official.

Meanwhile, Nepal has submitted a request list totalling around US$ 7 billion of Chinese assistance that includes building international airport in Pokhara ($ 2 billion), West Seti Hydropower ($1.6 billion), Budhigandaki Hydropower Project ($ 2 billion) and Nysalgadh Hydropower Project ($ 700 million). PM Bhattarai is also expected to request for Rs 4 billion Chinese assistance to fund the retirement package of ex-Maoist combatants. “The PM will make such a request during a banquet to be held in honour of the Chinese premier on December 20,” said the official.

Major agenda

    Revised cultural agreement

    Building four border/dry ports

    Int’l airport in Pokhara (US $ 2bn)

    Economic Zones in Pachkhal and Jumla

    Reducing trade deficit with China

Source: Kantipur