Nepal-China to sign pact on construction of 4 dry ports

KATHMANDU, Dec 9: 

Nepal and China are soon signing an agreement on the construction and management of dry ports at four customs points in a bid to facilitate bilateral trade. 

A highly placed source at the Ministry of Foreign Affairs (MoFA) said a draft agreement to this effect -- named as Agreement on Management of Ports along the China-Nepal Border -- was proposed by China recently. "We are positive toward it as well," said a source. 

That is not all. The two sides are scheduled to sign the agreement during the upcoming visit of Chinese premier Wen Jiabao to Nepal in January, the source told Republica. Apart from the signing of the agreement, the Ministry is also preparing other agendas for discussions during the visit of the Chinese premier.

In the draft pact received by Nepal, China has proposed to develop dry ports and cargo terminals on both the sides of Yari-Pulam, Rasuwa-Jilong, Kodari (Tatopani)-Zangmu(Khasha) and Olangchug Gola-Riwu customs.

China has proposed dry ports on Yari- Pulam, Rasuwa- Jilong, development of Kodari- Zangmu as international ports and Olangchung Gola- Riwu as a bilateral port.

The draft also states that new and temporary ports would be constructed through bilateral negotiations, the source added.

"Both the parties will need to strengthen the infrastructure and inspection facilities in the proposed ports in order to improve movement of vehicles and ensure that their capacities are best utilized to boost bilateral trade and movement of people," said the source.

The design and construction of such ports will be determined considering the future needs for bilateral trade.

The Chinese side has also proposed that the port administration as well as local governments of both the countries should head the mechanism that would be formed for implementation of the agreement. "Such structure is perceived to be necessary for the establishment of proper bilateral coordination," said the source.

The ports would have inspection offices for border control, customs and quarantine related matters.

The proposed pact also has a provision whereby, the two governments can suspend the movement of goods and people in any port keeping in view the national security, emergency, epidemic and disasters.

China has proposed that the agreement be subjected to renewal every 10 years by holding prior negotiations between the two countries.

So far, China had already agreed to provide assistance to Nepal for construction of a dry-port along the Kodari Highway to facilitate trade with China via Tatopani. Under this, it was ready to begin construction of a dry port at Larcha of Sindhupalchowk soon.

Nepal in recent years has been requesting the northern neighbor to support infrastructure development to facilitate bilateral trade.

The two sides have opened six customs points -- Olangchugola, Kimathanka, Tatopani, Rasuwagadhi, Mustang and Yari -- for bilateral trade and movement of people.