China the rising sun on Nepal economic horizon
KATHMANDU, AUG 18 -
It may surprise many, but China is now emerging as one of Nepal’s major development partners. Such is the increment in its assistance that the country this year has already pledged loans and grants above Rs 10 billion for Nepal’s infrastructure development.
The last fiscal year, Chinese aid to Nepal stood at Rs 2.55 billion. With the huge surge in assistance this year, China now figures in the list of top five development partners.
Two instances are enough to tell how Chinese assistance to Nepal is surging. In February, China agreed to provide concessional loan of Rs 7.28 billion for the construction of the 60 MW Upper Trishuli 3A and grant of Rs 547 million for widening the Ring Road. On Wednesday, Nepal and China signed a loan agreement of Rs 1.7 billion for the implementation of the Kathmandu 200 KV transmission line and the 132 KV bay extension work project of the Upper Trishuli 3A hydroelectric project. Wednesday’s agreement is the second instance in six months where China has provided such a huge loan.
The increased aid to Nepal—both grants and loan—coincides with China’s increased economic might and its global leverage. The visiting delegation tried to convey to Nepali officials that China is ready to further up its assistance.
During Chinese Vice Commerce Minister Chen Jian’s meeting with Deputy Prime Minister and Finance Minister Bharat Mohan Adhikari on Wednesday, the Chinese side was positive on a number of proposals forwarded by the Nepali side.
“On the West Seti Hydropower Project, Chen said his government is ready to extend credit,” Adhikari said. In the meeting, the Chinese side sought full documents of the West Seti project. Adhikari told the Chinese side that the Finance Ministry would send the Detailed Project Report to China in coordination with the Energy Ministry. The Finance Ministry has sent a letter to China seeking investment in the much awaited mega project.
According to Adhikari, the Chinese side expressed readiness to support the construction of an international airport in Pokhara and North South Corridor Roads, provided Nepal submits a proposal. According to Finance Ministry officials, China has assured that it is ready to provide aid to Nepal in both grant and loan forms.
The Chinese side told the Nepali side that it can get loans from various Chinese banks as per Nepal’s needs. The delegation also assured that it was ready to facilitate such loans to Nepal. “China also assured continued increase in the regular grant amount every year,” Adhikari said. China currently gives 150 million yuan in grants annually. Two years ago, China almost doubled its regular grant assistance to 150 million yuan.
Source: Kantipur
It may surprise many, but China is now emerging as one of Nepal’s major development partners. Such is the increment in its assistance that the country this year has already pledged loans and grants above Rs 10 billion for Nepal’s infrastructure development.
The last fiscal year, Chinese aid to Nepal stood at Rs 2.55 billion. With the huge surge in assistance this year, China now figures in the list of top five development partners.
Two instances are enough to tell how Chinese assistance to Nepal is surging. In February, China agreed to provide concessional loan of Rs 7.28 billion for the construction of the 60 MW Upper Trishuli 3A and grant of Rs 547 million for widening the Ring Road. On Wednesday, Nepal and China signed a loan agreement of Rs 1.7 billion for the implementation of the Kathmandu 200 KV transmission line and the 132 KV bay extension work project of the Upper Trishuli 3A hydroelectric project. Wednesday’s agreement is the second instance in six months where China has provided such a huge loan.
The increased aid to Nepal—both grants and loan—coincides with China’s increased economic might and its global leverage. The visiting delegation tried to convey to Nepali officials that China is ready to further up its assistance.
During Chinese Vice Commerce Minister Chen Jian’s meeting with Deputy Prime Minister and Finance Minister Bharat Mohan Adhikari on Wednesday, the Chinese side was positive on a number of proposals forwarded by the Nepali side.
“On the West Seti Hydropower Project, Chen said his government is ready to extend credit,” Adhikari said. In the meeting, the Chinese side sought full documents of the West Seti project. Adhikari told the Chinese side that the Finance Ministry would send the Detailed Project Report to China in coordination with the Energy Ministry. The Finance Ministry has sent a letter to China seeking investment in the much awaited mega project.
According to Adhikari, the Chinese side expressed readiness to support the construction of an international airport in Pokhara and North South Corridor Roads, provided Nepal submits a proposal. According to Finance Ministry officials, China has assured that it is ready to provide aid to Nepal in both grant and loan forms.
The Chinese side told the Nepali side that it can get loans from various Chinese banks as per Nepal’s needs. The delegation also assured that it was ready to facilitate such loans to Nepal. “China also assured continued increase in the regular grant amount every year,” Adhikari said. China currently gives 150 million yuan in grants annually. Two years ago, China almost doubled its regular grant assistance to 150 million yuan.
Source: Kantipur
