Bilateral talks are ongoing and the agreement might be signed at any time, Nepali officials said, adding that the cooperation on the BRI framework could even be signed during the present visit, regardless of what is written in the joint statement.
“The two sides expressed their readiness to sign the MoU on building the Trans-Himalayan Multi-Dimensional Connectivity Network (THMDCN) and the framework for Belt and Road Cooperation between the two governments as soon as possible,” according to a joint statement released by both sides late on Tuesday. However, it did not provide a specific date.
The two sides were expected to sign a new framework for BRI cooperation on Tuesday following delegation-level talks between Prime Minister KP Sharma Oli and his Chinese counterpart, Li Qiang. However, only nine different projects-related deals and agreements were signed, fanning suspicions that the much talked about framework for BRI cooperation was unlikely to be settled during the visit. The Chinese side had removed the word “grant” proposed by the Nepali side and suggested replacing it with “investment” for projects under the BRI.
After reviewing the new terms and conditions, officials found a compromise and decided to include the phrasing “aid and technical assistance” in relation to project execution in Nepal. The word “aid” adds ambiguity and marks a step back from the Nepali Congress’ position of clearly specifying grants. Some countries also term line of credit as aid but which are essentially loans.
“The Chinese side, after going through the document proposed by the Nepali side, removed the word ‘grant’ from the text and added ‘investment’,” said another Nepali official privy to the development. The Chinese proposal was then communicated to Prime Minister Oli and Foreign Minister Arzu Rana Deuba for their instructions.
The Nepali side requested and insisted on having the phrasing “aid and technical assistance,” and the Chinese side responded positively, the delegation member said. Despite Nepal’s repeated requests, no decision has been taken on the loan exemption for Pokhara International Airport. “This is something we hoped to achieve during the visit,” said one participant. “But the Chinese side was reluctant to exempt the loan.”
Back in Kathmandu, a team of ruling party leaders had reviewed and watered down some provisions of the BRI implementation plan draft, which was originally proposed by Beijing in early 2020. Nepal signed onto the BRI in May 2017, but lack of progress on projects under it made Beijing think of ways to overcome the obstacles in Nepal—and this is how the idea of the ‘Framework agreement on BRI implementation’ came about.
As preparations for Prime Minister Oli’s visit to China were progressing, the issue of BRI and its discussion had taken centre stage inside the ruling parties—the Nepali Congress and the CPN-UML. After several rounds of hectic meetings and talks including back channel negotiations with the Chinese side, a Congress-UML task force decided to remove provisions on loans, while also rejecting the blended financing model and some other investment modalities proposed by Beijing. They insisted that Nepal could only accept grants-based projects due to the country’s dire economic situation.
The new draft, prepared by the four-member task force, was handed over to the Chinese side for their consideration on Saturday. After going through the Nepali proposal, the Chinese side sent their comments on Tuesday morning, adding the term “investment,” which puzzled Nepali officials. Later, both sides resumed negotiations and agreed to replace the term “investment” with “aid and technical assistance”, Foreign Minister Deuba said.
Foreign Minister Deuba said Tuesday’s talks with President Xi Jinping, Prime Minister Li, and Zhao Leji, chairman of the Standing Committee of the National People’s Congress, went well. Oli and Xi held one-on-one after delegation level talks, but Oli did not brief the Nepali delegation about the specifics of his meeting with Xi. The Chinese president announced Rs9 billion (500 million RMB), according to Krishna Prasad Dhakal, spokesperson for the Ministry of Foreign Affairs. Xi, during the talks, while stating that he would encourage Chinese investors to go to Nepal and facilitate the export of Nepali products to Chinese markets.
Source: Here
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