Nepal signed an agreement with China for the utilisation of NRs. 15 billion (800 million RMB) in Chinese grants for various projects.
On Tuesday, Bishnu Pukar Shrestha, Nepali ambassador to China, and Luo Zhaohui, chairman of the China International Development Cooperation Agency (CIDCA), signed the agreement in Beijing.
The government has already given CIDCA, China’s external aid, approval to execute 15 small developmental projects in 13 northern districts, where a portion of the aid has already been received by some local bodies in the districts, according to Nepali government officials.
“Now the government of Nepal should expedite the project selection for their speedy implementation. The assistance amount was supposed to be spent in 2022, but due to a delay in the agreement’s signing, the assistance will be used in the year 2023-24,” said Shrestha.
The new grant is in addition to Rs. 58 billion (3.5 billion RMB) grants announced by the Chinese President Xi Jinping during official level talks between President Bidya Devi Bhandari and President Xi in October 2019 in Kathmandu. Nepal is yet to select projects to be funded under the grant amount.
Shrestha said that Nepal is thinking of utilising the grant in some ongoing as well as new projects. The projects under consideration are the long-delayed second phase of Ring Road expansion, Tokha-Chhahare tunnel, Syabrubesi-Kerung road expansion and construction of a new wing of the Bir Hospital in Bhaktapur.
Also in the plans are the reconstruction of Basantapur Durbar, Nuwakot Durbar, dry port on Nepal-China border (Panchkhal and others), upgrade and maintenance of the Kodari Highway as well as a feasibility study for the Nepal-China cross border railway project.
“The Chinese side has assured that it will start sending experts for the feasibility study of the much-talked about cross-border railway by the end of this year,” said Shrestha.
